Cricket’s craze in India now goes far beyond stadiums, spilling into the booming world of fantasy gaming. With the IPL season in full swing, smartphone screens are flooded with ads featuring Bollywood stars and cricketers endorsing fantasy sports apps, fuelling their popularity.
On the other hand, the Indian stock market seems to have lost steam after a strong rally. This raises an interesting question — are market participants, especially new traders, turning to fantasy gaming apps in search of quick profits? Let’s take a closer look.
Dream11 vs Demat Accounts in India
As reported by Business Today, Dream11 — the fantasy gaming platform — now has approximately 220 million users in India, up from 150 million just a year ago. In 2023 alone, the platform added 55 million new users, compared to 20 million in 2022, according to co-founder and CEO Harsh Jain. Notably, Dream11 saw a 79% YoY increase in female users during the same period.
In comparison, the number of demat accounts rose by 46 million in 2024, reaching 185.3 million, up from 139.3 million in 2023 — a 33% increase. Over the past five years, the number of demat accounts has grown 4.5x — from 39.3 million in 2019 — primarily driven by pandemic-era enthusiasm. However, growth has recently slowed, with only 2.04 million new accounts added in March 2025, marking the lowest monthly addition since April 2023 and the third consecutive monthly decline.
Over the past five years, the number of demat accounts has surged 4.5 times — from 39.3 million in 2019 — largely driven by the pandemic.
While demat accounts have grown over time, Dream11 alone commands a massive user base. Considering the presence of several other platforms offering large cash prizes, the total number of fantasy gaming users could be significantly higher. However, due to limited official data, estimating exact figures remains a challenge.
Real Money Gaming Powers India’s Online Gaming Sector
In 2024, Real Money Gaming (RMG) contributed a dominant 86% share of the $3.7 billion online gaming revenue in India, underlining the rising engagement in paid gaming formats. However, RMG’s share is expected to drop slightly to 80%, while non-RMG’s share is forecast to rise from 14.3% to 20% during the same period.
India has emerged as a global gaming hub with 591 million gamers, representing 20% of the world’s gaming population. The country also witnessed 11.2 billion mobile game downloads and is home to around 1,900 gaming companies.
What’s Driving This Surge?
Attractive Prizes: The chance to win real cash — combined with the thrill of competition — has pulled millions of users towards fantasy sports and RMG platforms.
IPL Season: The IPL’s popularity continues to power fantasy gaming. Dream11 reported 10.56 million concurrent users during the GT vs CSK match in IPL 2023, up from 7 million in 2022.
Internet Accessibility: Affordable smartphones and affordable internet have widened access to online gaming for users across India.
Young Demographics: India’s large youth population forms a natural audience for online gaming and fantasy sports platforms.
Rising Sports Culture: Growing interest in cricket, football, kabaddi, and other sports is encouraging more active fan engagement through fantasy gaming.
GST Impact on Fantasy Sports Revenue
Fantasy platforms like Dream11 and My11Circle reported combined revenues of Rs 9,100 crore in 2024. However, the implementation of the 28% GST has dampened projections for 2025, reducing expected revenue to around Rs 8,200 crore — a dip of nearly 10%.
Analysts expect revenues to recover by 2026, with projections estimating steady growth to reach Rs 12,900 crore by 2029.
As per Livemint, the high tax burden is likely to slow RMG’s growth and could push investors toward non-RMG categories. This shift may result in billions in FDI write-offs. In response, platforms are ramping up marketing efforts, especially during IPL, to retain users and drive revenues despite regulatory hurdles.
What’s in It for Investors?
By 2029, India’s online gaming sector is projected to generate $63 billion in investor value. So far, it has attracted $3 billion in foreign direct investment, with 85% flowing into the Pay-to-Play segment.
Companies like Nazara Technologies, OnMobile Global, and Zensar Technologies stand to benefit from this surge. Nazara, in particular, is a leading name in poker and among the top 10 in online rummy.
Shares of Nazara Technologies are trading at a premium compared to global peers, as investors see strong long-term growth prospects, according to The Times of India.
What’s Next?
A joint report by WinZO Games and IEIC estimates that India’s online gaming market will more than double — from $3.7 billion in 2024 to $9.1 billion by 2029, with RMG continuing to lead.
However, the rapid rise of fantasy and betting platforms has triggered concerns about addiction and financial vulnerability, especially among youth.
As SEBI tightens regulations for retail investors in stock markets, fantasy gaming apps remain aggressively promoted, sparking debate around India’s regulatory balance between financial investing and online gaming.
*The companies mentioned in the article are for information purposes only. This is not an investment advice.
*Disclaimer: Teji Mandi Disclaimer
