Fantasy sports made Rs 2,800 Cr in Gross Gaming Revenue during the IPL season in 2023: Redseer Report

The Redseer Report shows a 24% jump in gross gaming revenue from INR 2250 Cr in IPL 2022.

IPL is the most awaited sporting event, with fans across the country cheering for their favourite teams to take the coveted trophy home. The rush of live matches isn’t enough for the millions, so they take it to the fantasy league - a virtual game where the participants can create their own teams based on real-life players and virtual currency. IPL seasons are a money spinner for Fantasy Gaming Platforms, and IPL 2023 witnessed a gross gaming revenue of ~INR 2,800 Cr with 61 million users participating in fantasy gaming. Redseer’s analysis shows a 24% jump in gross gaming revenue from INR 2250 Cr in IPL 2022, and the market has grown at a CAGR of 30% since IPL 2019. 

The virtual teams put together by users help them score points through the real-life performances of their players in the match. At the end of the season, the participants can win prizes or cash based on their scores. The strategy consultant’s analysis shows that the IPL 2023 had a strong user acquisition engine, with 35% of new users playing for the first time on the platforms. The influx of new users led to an 11% increase in cash users during the season, with the average spend per match of ~ INR 127 per user. 

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Key Points: 

• IPL 2023 witnessed revenue of ~INR 2,800 Cr with ~61 million users participating on Fantasy Gaming Platforms
• Top 3 Platforms captured ~96% of the Market Share during the IPL 2023 Season
• Platforms had an Average Revenue Per User (ARPU) of ~ INR 458 during IPL 2023
• A total of ~INR 10,000 Cr. was spent on advertisements during the IPL 2023

Commenting on the IPL market overview, Ujjwal Chaudhry, partner at Redseer, said, “The top 3 platforms captured ~96% of the market share during the IPL 2023, and had an average revenue of INR 458 per user for the season. The excitement of IPL also trickled into non-IPL sporting events during the season, contributing to ~13% of the revenue.” Analyzing the average gross gaming revenue (GGR), notes that the GGR during weekdays was 1.3x compared to weekends and peaked during the final match. The Mega Tables, which is the sum of all the highest prize pool tables in every match across the platforms, dropped in size by 30% during weekends due to multiple matches on the same day. However, Mega Tables have a higher rake rate of 24%, contributing 60% to the revenue during the season. 

Shedding light on IPL 2023’s ad revenue, Redseer estimates a total of ~INR 10,000 Cr was spent on advertisements in which BCCI, Franchise, and Broadcasters earned 65% of the total spend as direct revenue. The remaining 35% of indirect revenue was earned as ad revenue by social media platforms, traditional media, and other internet platforms.