A man named Himanshu Mishra has gone viral on social media. Recently, Himanshu claimed on a news channel show that he lost 9.6 million rupees in online gaming. He further stated that his family disowned him after losing the money. Himanshu's story has since been shared on various other platforms.
While there might be some inconsistencies in Himanshu's story, a video of Unnao police constable Surya Prakash is also making rounds. Surya Prakash claimed he lost 1.5 million rupees in online gaming. He released a video appealing to his SP Sir to collect 500 rupees from each policeman to prevent him from committing suicide.
In July of this year, another strange case surfaced involving the loss of millions in online gaming. Merchant Navy officer Raman Chauhan lost 14 million rupees over two years. Later, he reported a theft of 5 million rupees to the police. Upon investigation, Raman confessed to losing 14 million rupees in online gaming.
These are just three stories. There are many more where people lose their entire savings trying to earn more. The craze for online gaming in India has increased significantly over the years. This is known as 'Fantasy Sports.' Fantasy sports arrived in India two decades ago but gained momentum after June 2016. In fantasy sports, users create their teams using a mobile app or website and earn points based on player performances. Earnings are based on these points.
There are two models in fantasy sports. The first is 'Free to Play,' where no fees are needed to play. The second is 'Pay to Play,' which involves entry fees or contest fees.
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Fantasy sports began in the USA back in 1952, but in India, it started in 2001 when ESPN-Star Sports launched it. However, it was discontinued in 2003.
The market for fantasy sports saw significant growth post-2016 when the internet became cheaper. According to the Federation of Indian Fantasy Sports (FIFS), the number of fantasy sports players increased from 2 million in June 2016 to 180 million in 2022. By 2027, the number of players is expected to reach 500 million.
There are several reasons for this rapid growth in users in India. Internet is cheap, and there are around 700 million smartphone users. By 2025, there will be 900 million smartphones in the country. Additionally, fantasy sports apps are available in many Indian languages, and online payments have become easier due to UPI.
Source: aajtak
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How big is the Fantasy Sports Market?
In the online gaming realm, fantasy sports are rapidly emerging. Nowadays, many prefer playing imaginary games on their phones instead of physically playing on the ground or in stadiums. Some succeed, while others, like Himanshu, Raman, and Surya Prakash, lose substantial amounts of money.
Despite the high risk of losing money, the fantasy sports market is thriving. According to an FIFS report, the Indian fantasy sports market is currently worth 750 billion rupees. Additionally, fantasy sports operators' revenue is growing exponentially. In 2018-19, their revenue was estimated at 9.24 billion rupees. By 2026-27, it is expected to generate 253 billion rupees in revenue.
Additionally, from 2018 to 2022, the fantasy sports industry contributed 45 billion rupees in taxes to the government, including 28 billion in GST alone. It is estimated that from 2023 to 2027, the industry will contribute 260 billion rupees in taxes.
The report highlights that fantasy sports contribute 31 billion rupees to the sports economy. This means fantasy sports spend 31 billion rupees annually on sponsorships. By 2026-27, this expenditure is expected to rise to 65 billion rupees.
According to FIFS, fantasy sports players deposit 42 billion rupees annually, with an average user spending 350 rupees monthly.
Source: aajtak
Form Teams and Earn Money
The Indian Premier League (IPL) began in 2008. A year later, Harsh Jain and Bhavit Sheth launched Dream 11. In Dream 11, users create their cricket teams and earn points based on players’ performances. The more points, the more money.
Today, Dream 11 is the largest company in fantasy sports. Dream 11 holds a 90% market share in fantasy sports in India. In 2022-23, the company's revenue was 63.85 billion rupees.
Cricket remains the most popular fantasy sport. Now users are also creating fantasy teams in women's cricket. Forty percent of users playing fantasy sports are between 25 and 34 years of age. Meanwhile, 35% of users are aged 18 to 24.
Ten percent of users play fantasy sports more than twice a week, while 30% play once or twice a week.
Source: aajtak
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Is Fantasy Sports Different from Gambling?
Fantasy sports are not considered gambling. Various high courts and the Supreme Court have classified fantasy sports as a game of 'skill.'
In September 2022, the Supreme Court ruled that fantasy sports is a game of 'skill,' not 'chance.' Although 'chance' plays a role, players use their 'skills' to create strategies. The Supreme Court upheld the decision of the Punjab and Haryana High Court.
In October 2021, the Karnataka High Court banned fantasy gaming apps. However, the ban was lifted in February 2022. In October 2022, the Tamil Nadu High Court also banned them, stating that these apps have ruined many families.
Fantasy sports apps are also banned in Andhra Pradesh, Telangana, Assam, Odisha, Sikkim, and Nagaland.
What is the Law on Betting in India?
According to the 1867 Public Gambling Act, betting and gambling are crimes. However, this is a state matter, and state governments can make their own laws. Some states, like Goa, have legalized certain gambling activities.
In 1966, the Supreme Court recognized betting in horse racing and rummy, stating that these are games of skill rather than chance.
Betting in cricket is illegal in India, but there are demands to legalize it. Approximately 14 billion rupees are bet on every cricket match in India. The Lodha Committee and Law Commission have recommended legalizing cricket betting to generate about 200 billion rupees in annual revenue.
