Recently, the Government of India recognised esports as a part of multisports events. It will come under the ambit of Ministry of Youth Affairs and Sports. A government-recognised industry promotes ecosystem growth by opening up new revenue streams. This move is opening business avenues for fantasy esports, which was not popular earlier in India.
AnimationXpress spoke to FanClash, a burgeoning fantasy esports platform in India, about how this move will infuse confidence among the industry stakeholders. The company co-founder and CEO Richa Singh said that the government’s move “will benefit the industry in several ways. By recognising esports as an official industry, India can tap into the potential of its rapidly growing market. It provides legitimacy to the esports industry in India and attracts more investments from both local and international markets.”
She highlighted, “The industry will be officially regulated and monitored which will restrict foul play or risks that are prevailing. The move could invite collaborations between esports and traditional sports, leading to the growth of the sports industry as a whole and giving esports players equal stature and prominence as athletes. Finally, it could help India create better infrastructure for esports tournaments, making it easier for esports professionals to compete and make a living.”
She continued by saying that the government’s acknowledgement will facilitate public enjoyment of fantasy esports in India while also overseeing its regulation. The rules as well as the player preferences will dictate the kinds of games and formats that are offered in fantasy esports. Everyone involved in the sector will be in a secure and equitable environment as a result. “The framework will aid in clarifying the legal and tax implications of fantasy esports in India. This will make it possible for anyone working in the sector to conduct themselves in a compliant manner. We think it will contribute to the development of a favourable atmosphere for the Indian fantasy esports market.”
Here is the excerpt of the conversation:
What is the place of fantasy esports in the esports and gaming ecosystem? How can it promote growth in the sector?
Fantasy esports is an emerging gaming genre that combines traditional fantasy sports gameplay with the dynamic world of esports. It allows players to create their own fantasy team of professional esports players, earn points based on the performance of the players and compete with other fantasy teams. It provides a way for esports fans to increase their engagement with the esports scene and for new fans to become more involved in the community.
Fantasy esports can promote growth in the sector by providing additional revenue streams – organisations can charge players entry and advertising fees. It can also create marketing opportunities for teams and players and increase the viewership of tournaments, as players who have created their own teams will be more likely to watch the games in order to track the performance of their team.
How has the industry benefited from the participation of women in leadership positions?
Women are likely to bring a different perspective to the creation of games and to introduce new ideas and concepts. This could lead to games that are attractive to a wider range of players including those who may have previously been overlooked or ignored.
The presence of women in leadership positions can create an inclusive gaming environment, benefitting both male and female players. Having more women in senior positions can boost the visibility of female game developers and designers, encouraging young women to pursue careers in the gaming industry.
The start-up culture is boosting the Indian esports and gaming ecosystem, allowing you to create your footprint in the worldwide market. Your opinion?
With the emergence of new players in the market, investment, infrastructure and support systems are all evolving rapidly. The esports industry in India is driven by big-ticket investments from venture capitalists, angel investors and other tech-savvy investors. Along with that, the government has also been actively working to promote the growth of the industry in India.
According to ‘India Gaming Report FY 2022’ by Lumikai, India’s gaming market stood at $2.6 billion in FY 2022 and is expected to grow at a CAGR of 27 per cent to reach $8.6 billion by FY 2027. The revenue source is likely to move from RMG (real money games), where users play to earn, to in-app purchases, a category growing at 34 per cent CAGR.
In India’s fantasy esports environment, FanClash is the early mover. Where do you anticipate it going?
Founded in mid-2020, FanClash has evolved into Asia’s largest esports fantasy platform with operations in India. We expect it to be widely accepted as more people become familiar with its features and its potential to enhance the esports viewing experience. There is a chance of massive growth from India, especially from PC games like CS:GO, Valorant, Dota 2, etc. It is likely to grow in popularity internationally as well.
The journey of fantasy sports in India has been shaped by the holistic consumption of sports by various populations. Do you believe fantasy esports will become as popular as fantasy sports given that the majority of esports viewers in India are Gen Z and Millennials?
Fantasy sports leagues have become popular in India with many platforms offering fantasy sports competitions. This has created a surge in the number of participants. The emergence of esports has further fueled the growth of fantasy sports in India.
Given the popularity of esports in India, fantasy esports is likely to become as popular as fantasy sports in the coming years. Fantasy esports has opened a new window of opportunity for participants to earn some money and also stay in touch with their favourite esports games. In addition, it has provided a platform for esports enthusiasts to compete and interact with each other. The government should take proactive measures to promote esports and create a conducive environment for fantasy esports.
As esports teams disband, reorganise or become inoperable due to game bans, what effect will it have on fantasy esports?
It could potentially have both positive and negative effects. It’s good for brand sponsors if teams participate and nurture rosters in multiple games, given that sometimes games can be banned. Additionally, if a team reorganises and some players are replaced, the performance of the team may be impacted, which could also positively affect the brand sponsors. However, it can also give an opportunity to new teams and players to rise to prominence, creating a new level of excitement and interest in this segment.
The idea of fantasy esports persisted for a very long time. Why was India’s appearance on the stage delayed for so long?
The delay in India’s appearance can be attributed to the country’s long-standing restrictions on online fantasy gaming. Plus, India’s complicated regulatory framework and the lack of infrastructure for esports in the country also makes the progress slow.
The esports market in India is fragmented due to the vast number of teams competing in various games. As there is no unique Indian team, it lacks the best bowler or batter, similar to cricket. Do you think users’ ability to make decisions will be questioned by fantasy esports?
Yes, the large number of teams competing in different games could make decision-making challenging for users. With a more diluted market, it may be hard to identify the top players or teams in a particular game, making it difficult to make informed decisions about which players to include in a fantasy team. Additionally, the lack of a specific Indian side in esports could make it tough for users to predict how Indian players or teams will perform in international competitions.
However, it also provides a wide range of options for users to choose from. It could also lead to an opportunity for new teams and players to rise to prominence, which could create a new level of excitement and interest in fantasy esports. To make informed decisions, users should be aware of market fluctuations, players’ performance and the game dynamics.
Lastly, any plans or announcements for 2023?
Developments are taking place constantly and are still in process. There are a couple of exciting announcements which will take place shortly once we are all aligned. Nothing as of now, to be honest.
