The IPL, the most anticipated sporting event in the country, captivates millions of fans who eagerly follow every match. For many, watching their favorite teams compete and spending quality time with friends and family in the evenings is a cherished experience. However, there are others who are drawn to their screens by the chance to add even more excitement to the game and potentially win substantial prizes.
Fantasy cricket platforms have emerged as a popular choice among enthusiasts, allowing them to participate in the game and compete for a share of the prize pool. As a result, the market for fantasy cricket has witnessed consistent growth, maintaining a Compound Annual Growth Rate (CAGR) of 30% since 2019.
To provide insights into both the online and on-field aspects of the IPL market, Ujjwal Chaudhry, a partner at Redseer, offers an overview of this thriving industry.
Fantasy sports platform cumulatively made ~INR 2,800 crore in gross gaming revenue during IPL 2023
The IPL 2023 witnessed revenue of ~INR 2,800 Cr. with ~61 million users participating on fantasy gaming platforms, and the numbers being very close to what we estimated for the season.
Revenue for the platforms grew from last season by 24% because of two major factors — First, there was an increase in transacting users on the platform by 11%, and second, the average revenue per user also grew by 12%. It’s also essential to note that the top 3 platforms had ~96% market share for IPL 2023.
IPL 2023 had a strong user acquisition engine, with 35% of users playing for the first time in IPL 2023
Over the last five IPL seasons, the number of cash users (people who routinely transact on platforms during IPL days) grew at a CAGR of 18%. During IPL 2023, an influx of new users – people playing fantasy sports using cash/money for the first time shot up, contributing to 35% of cash users for the season.
Overall, there was an 11% increase in cash users from 55 Mn in IPL 2022 to 61 Mn in IPL 2023. Coming down to the specifics at the user level, each spent ~INR 127 per match this season, with the platforms having an average revenue per user of ~INR 458.
The average GRR per match during weekdays was 1.3x compared to weekends, and peaked during the final match
The average Gross Gaming Revenue (GRR), which is the commission charged by the platforms, were lowest during the league matches and peaked during the finals.
The average GRR was 1.3X higher during the weekdays as the size of the Mega Tables dropped by 30% on weekends due to multiple matches being held on the same day.
60% of GRR for the platforms came from mega tables, which have a higher Rake Rate of 24%
The Mega Tables is the sum of all the highest prize pool tables in every match across platforms.
Having a higher rake rate of 24%, mega tables are where platforms make the bulk of their revenue (60%), although it only contributes to 55% of the amount collected from users as the entry fees.
On the field, BCCI, Franchise, and Broadcasters earned 65% of the total 10,120 Cr. ad spend
The total money spent on advertising was ~ INR 10,000 Cr during the IPL 2023, out of which 65% was direct revenue to the BCCI, franchisees, and broadcasters Star and Jio Cinema.
The direct revenue came from different sponsors, while indirect revenue, which constituted 35% of the total, came from ad revenues on social media, traditional media, and other platforms on the internet.
Data and insights are powered by Redseer owned, benchmarks – A business intelligence tool for leaders.
