Tier 2 cities lead the way in fantasy gaming with 65% of revenue: Redseer report

The recent commencement of the Indian Premier League (IPL) marked the beginning of yet another captivating season. Beyond the spectacle of matches and on-field excitement, the IPL serves as a significant driver of economic activity, fostering growth and engagement across various sectors. 

As the IPL progresses, another notable player emerges in the economic landscape: the fantasy gaming industry. Leveraging the IPL's distinctive format and broad appeal, fantasy sports platforms are thriving during this lucrative period.

Fantasy games, akin to sports betting, involve users creating fictional teams comprising real athletes from a specific sport, with winners determined by points accrued. Numerous organizations in India, such as Dream11, Games 24X7, My11Circle, Mobile Premier League (MPL), Fantasy Akhada, and MyTeam11, engage in fantasy sports.

The surge in user engagement and investment during the IPL has directly fueled the rapid expansion of this sector, underscoring the transformation of fantasy sports from a niche pastime to a significant economic force.

These gaming platforms offer more than just passive viewing; they invite active participation. Participants assemble their dream teams and earn points based on the performance of real players in actual games. The user base for these platforms is experiencing a surge during this IPL season, influencing everything from platform adoption to digital transactions.

According to a report by Redseer Strategy Consultants, the fantasy sports revolution is gaining momentum in tier 2 cities and beyond in 2024, with over 65% of revenue originating from these local internet economies. With the current trends in the IPL season, fantasy sports revenue is anticipated to rise by 25-30% compared to 2023, reaching USD 500-525 million in IPL 2024.

Impact on fantasy gaming industry

The IPL's influence extends beyond cricket, catalyzing economic activity across industries, particularly in the fantasy gaming sector. This season witnesses a significant rise in revenue, with a substantial portion originating from tier 2 cities and beyond. Projections indicate a remarkable surge in revenue compared to previous years, reaching new heights.

User Engagement

Fantasy leagues have experienced a surge in popularity, with platforms like Dream11 and My 11 Circle offering immersive experiences that go beyond passive viewership. The IPL season sees a substantial increase in both daily active cash users and revenue per person, driven by enticing cash prizes and innovative initiatives.

Explosive start

With a fraction of matches already played, the IPL season demonstrates promising results for fantasy gaming platforms, achieving substantial revenue growth compared to business as usual. Successful marketing campaigns and new user adoption contribute to this early success.

Innovative solutions and opportunities

Fantasy gaming platforms have introduced innovative features and campaigns to enhance user experience and drive engagement. These include AI-powered features, higher cash prizes, engaging campaigns, and celebrity endorsements, making fantasy gaming more accessible and appealing than ever before.

Macro view

The surge in fantasy gaming during the IPL reflects a broader trend of integration between sports, technology, and economic activity. The IPL serves as a catalyst for this integration, benefiting various stakeholders and contributing to economic growth across different sectors.