Fantasy Sports to contribute Rs 24,300 cr in taxes by FY2025

Presently, Fantasy Sports Market stands steady at Rs 34,000 crores. Although, the industry’s cumulative tax contribution is to grow upto Rs 24,300 by FY25. 

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Fantasy Sports to contribute Rs 24,300 cr in taxes by FY2025
Image Source: Internet, Pixabay

Presently, Fantasy Sports Market stands steady at Rs 34000 crores. 

Although, the industry’s cumulative tax contribution is to grow upto Rs 24,300 by FY25. 

According to a report from Deloitte, “India has the world’s largest Fantasy Sports market with a user base of 13 Crore, which might grow at a CAGR of 32% in the coming years.”

Furthermore, a report released by the FIFS states, “Fantasy Sports Industry’s market might touch Rs1.65 lakh crore by FY2025 with a CAGR of 38%.”

Moreover, global statistics state that the users are primarily males, accounting for 67%. 

However, a recent report suggests that 30% of revenue generated is from an Indian Female user base. 

Statistics behind Fantasy Sports Industry’s significant growth?

During the Fiscal year of 2021, the industry generated Rs 5200 crore in revenue. 

However, the industry reaches the revenue of Rs 500 crores through their service providers and vendors. 

During the last three years upto 2021, the industry’s tax contribution has grown ten times, reaching nearly Rs 1450 Crore in FY21. 

Furthermore, during IPL 2021’s Phase-1, the industry grew its user base by 20 lakh. 

Moreover, cricket is one of the major domains of the Industry. 

However, cricket may have its shares divided amongst sports like kabaddi, hockey, Football, etc. 

As a report by the FIFS states, “Cricket might remain the highest contributor in overall revenue generation of the Fantasy Sports, growing at 30% CAGR over the next four years.”

Furthermore, tier 2 and tier 3 cities dominate nearly half of user transactions on fantasy sports platforms.

 

Lastly,

“Fantasy Sports Industry is creating high-skilled jobs, bringing in Foreign Direct Investment (FDI), and generating significant revenue,” said FIFS chief executive officer Anwar Shirpurwala. 

As per the law, any prize money generated from the industry is taxable at 30%, excluding surcharges and cess. 

Hence, the projective cumulative tax contribution by Industry might grow upto Rs 24,300 crore by FY25, as per a report from FIFS. 

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