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How Fantasy Sports Is Different from Online Gaming

The NITI Aayog report recognises fantasy sports as a sports engagement tool and distinguishes it from online games.

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BrandStudio
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The popularity of fantasy sports in India is only rising with sports fans and enthusiasts actively engaging with such platforms. That’s why, the guidelines drafted by NITI Aayog for regulating Online Fantasy Sports Platforms bode very well for the industry and is nothing short of a revolutionary move.

Different from Online Games

To participate in fantasy sports, users create their own virtual teams before the start of a real-life live sporting event, on the basis of their knowledge and understanding of that particular sport, its players, team strength etc. The results of such contests depend entirely on the actual performance of the sportspersons playing in the real-world sports match. Fantasy Sports are based only on real life sports, and no simulation whatsoever. Fantasy Sports are only available for a real life match and not 24x7, unlike gaming.

The format of Online Fantasy Sports ensures that sports enthusiasts follow the matches more keenly and this directly results in increased focus and attention towards sports.

Fantasy Sports users watch 60 percent more sports. All of this and much more makes fantasy sports distinct from online games and is consumed as a sports engagement platform by avid sports fans.

The majority of time spent by a fantasy sports user is on sports research, analysis and following the underlying real-world match, with fantasy sports participation being only a small and episodic fraction of the time spent by the user in relation to the activity. This makes it a non-addictive form of engagement, as highlighted in a whitepaper by IndiaTech.

Key Takeaways from NITI Aayog report

The NITI Aayog report recognises fantasy sports as a sports engagement tool and distinguishes it from online games. It observes that this formal recognition would help the industry “to focus on innovation, achieve scale and expand their operations.” The call for regulation is also in line with Prime Minister Narendra Modi’s vision of Aatmanirbhar Bharat and is expected to spur the growth of indigenous fantasy sports companies.

Given the dynamic nature of Fantasy Sports, it bodes well that NITI Aayog has proposed a light-touch self-regulatory framework that can facilitate market growth and provide an impetus to further innovation. Setting up of the self-regulatory organisation, along with the uniform national-level guidelines, will empower the Fantasy Sports industry to safeguard user interest and deter unscrupulous operators.

Regulation of the industry holds great promise for the country’s economy too. The fantasy sports sector is expected to contribute nearly Rs 10,000 crore to the Indian government over the next 2-3 years by way of taxes.

In the coming few years, it also has the potential to attract FDI of more than Rs 10,000 crore and generate additional 12,000 direct and indirect jobs. Furthermore, having a single-purpose self-regulatory body with 66 percent industry user base representation and uniform guidelines for fantasy sports will improve ease of doing business and help the industry achieve its full potential.

The World of Fantasy Sports

Thanks to fantasy sports, over the past few years, sports fans in India have found an engaging and entertaining way of connecting with sporting events across the globe, and that too from the comfort of their homes. The IndiaTech whitepaper on fantasy sports states that users who actively engage with such platforms lie primarily in the age group of 25 to 40, who are independent / salaried class / sports fans. The popularity of fantasy sports goes beyond metropolitan cities and has penetrated into Tier 1 and Tier 2 cities as well. This can be attributed to the widespread availability of smartphones and strong internet connection.

Studies show that 80 percent fantasy sports users play in free-to-participate contests, while 99.1 percent of all fantasy sports users have either won or lost less than Rs 10,000 net in their lifetime.

When users participate in fantasy sports their sports consumption increases given that they are more involved in the real-life sports, players and match developments.

They begin following the sport closely. A survey by Federation of Indian Fantasy Sports and Kantar shows that 60 percent of fantasy sports users now follow that particular sport more than they used to before. As a result, with a view to keeping fans engaged with their favourite sport, sporting bodies and leagues are now tying up with fantasy sports platforms.

Typically, this is how a fantasy sports contest goes. Sports fans create their fantasy sports teams before the match starts and learn of the scoring system too at the onset itself. Once the match begins, they can’t make any changes to their teams. They can, however, view teams that have been created by their competitors. There is a leaderboard that tells you how your fantasy sports team is performing. In this way, fantasy sports provides a transparent, level -playing field to all users irrespective of their expertise.

The Way Ahead

India’s fantasy sports industry is in an exciting phase right now and holds tremendous potential. The guidelines drafted by NITI Aayog for the regulation of the industry will give it the much needed boost and pave the way for further growth of both sports and fantasy sports.

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

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Topics:  NITI Aayog   Fantasy sports 

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