Fantasy Apps in India: Entertainment or Emerging Economic Risk?

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Introduction: The Rise of Fantasy Sports in India:

 

Fantasy apps have transformed the landscape of sports entertainment in India, blending technology, gaming, and real-time sports analysis into a virtual experience. These apps allow users to create imaginary teams of real players, earn points based on real-life performances, and win cash rewards. With increasing smartphone penetration and affordable internet, platforms like Dream11, MPL, My11Circle, and Gamezy have gained massive traction, especially during cricket tournaments like the Indian Premier League (IPL) and ICC events.

 


Who’s Playing: Youth and the Rise of Digital Gambling Culture:


Fantasy sports apps are primarily popular among the youth and young adults aged 18–35. A report by the Federation of Indian Fantasy Sports (FIFS, 2023) highlighted that over 70% of fantasy sports users fall within this age bracket, many of them being students, first-time earners, or young professionals. The user base is predominantly male, tech-savvy, and spread across urban and semi-urban areas.

 

While these platforms offer a sense of strategic engagement, the gamification of sports can also blur the lines between skill and chance. With real money on the line, fantasy apps increasingly resemble forms of digital gambling, posing risks to financial and mental well-being.


Economic Impact and Financial Risk for Users:

 

Although fantasy apps offer entertainment and potential earnings, there is a growing concern about financial loss and addiction:

• High User Spending: According to a Deloitte-FIFS report (2022), the average user spends around INR 400–500 per match during peak seasons. This amount scales significantly for frequent users.

• Gambling Addiction Concerns: The compulsive nature of team creation, rewards, and real-time tracking fosters a gambling-like environment. Many users fall into a loop of repeated spending, chasing past losses.

• Financial Consequences: Numerous users have reported substantial monetary losses, some even taking loans or using credit cards to continue playing. The National Institute of Mental Health and Neurosciences (NIMHANS) has flagged this behavior as a potential public health issue.

 

Legal Landscape and Supreme Court Stand:

 

The legality of fantasy sports in India has been debated extensively. In its 2021 judgment, the Supreme Court upheld that fantasy sports, particularly Dream11’s model, involve “preponderance of skill” and are not considered gambling under the Public Gambling Act of 1867. However, several states like Andhra Pradesh, Telangana, Assam, and Odisha have banned such apps, citing their addictive and gambling-like nature.

 

Market Size and Industry Statistics:

• The fantasy sports market in India was valued at INR 34,000 crore (USD 4.2 billion) in FY2023 and is projected to reach INR 1.65 lakh crore by FY2027 (KPMG Report, 2023).

• There are more than 180 fantasy platforms with over 180 million registered users as of 2023.

• Cricket constitutes nearly 85% of the market share, with football and kabaddi following.

 

Social and Psychological Implications:

• Youth Engagement: Fantasy apps foster a false sense of control and skill-based success, which can mislead young users about the real risks involved.

• Mental Health Impact: Loss-induced frustration, addiction, and anxiety are common among compulsive users.

• Family and Social Disruption: Financial losses often translate into strained family relationships and social isolation.

 

The Road Ahead: Regulation, Awareness, and Responsible Gaming:

 

While the fantasy sports industry contributes to digital innovation and sports engagement, regulation and user education are key to ensuring its sustainability:

• Clearer Regulation: The Indian government’s draft guidelines under the Ministry of Electronics and Information Technology (MeitY) aim to define permissible practices and require apps to register with self-regulatory bodies.

• User Verification and Age Control: Mandatory KYC norms and age restrictions must be strictly enforced to prevent underage access.

• Spending Limits and Alerts: In-app tools to alert users about excessive spending and limit financial exposure should be integrated.

• Awareness Campaigns: Collaborations with mental health professionals and influencers to educate users about the risks of addiction can promote responsible gaming.

 

Conclusion: A Double-Edged Sword in the Digital Age:


Fantasy sports apps in India represent a fascinating convergence of sports, technology, and digital entrepreneurship. They enhance fan engagement and create economic opportunities, but also pose serious financial and psychological risks, particularly for the youth. As the sector matures, its future depends on balanced regulation, ethical innovation, and greater awareness among users. Without appropriate safeguards, fantasy apps could shift from being an engaging digital pastime to a widespread economic vulnerability.

 

References:

1. Federation of Indian Fantasy Sports (FIFS). (2023). Fantasy Sports Market Report. Retrieved from https://fifs.in/reports/

2. Deloitte–FIFS. (2022). Business of Fantasy Sports. Retrieved from https://www2.deloitte.com/in/en/pages/technology-media-and-telecommunications/articles/fantasy-sports.html

3. KPMG India. (2023). Online Gaming in India: The Tax Landscape. Retrieved from https://assets.kpmg/content/dam/kpmg/in/pdf/2023/06/online-gaming-report.pdf

4. Supreme Court of India. (2021). Dream11 Case Verdict - Civil Appeal No. 1085 of 2021.

5. NIMHANS. (2022). Annual Mental Health Report. Retrieved from https://nimhans.ac.in/publications/

 

This blog is written by Karishma Giri, M. Com Student



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