Fantasy sports revenue drop hits India's real money gaming growth in 2024; Poker, Rummy shine

Online Gaming

Revenue earned by fantasy sports platforms through commissions on user contest fees dropped to Rs 8,800 crore in 2024, down from Rs 11,000 crore in 2023, according to a report by Redseer.

The year-on-year (YoY) growth rates went down significantly in the past few months for real money gaming. This decline was majorly driven by de-growth in fantasy sports which took a hit of 58 percent YoY, while other game categories saw growth with Poker reporting a 54 percent growth, Rummy 26 percent, and casual games 71 percent in terms of GGR.

The revenue matrix

While fantasy sports revenue fell, rummy's GGR grew to Rs 16,000 crore last year, up around 6 percent from Rs 15,000 crore in 2023.

Poker's gross gaming revenue, on the other hand, grew to Rs 2,100 crore from Rs 1,800 crore in 2023.

Casual games reported a GGR of Rs 4,300 crore in 2024, up from Rs 3,300 crore a year ago.

The real money gaming GGR for November 2024 reached Rs 2,953 crore, the report noted.

The overall monthly active cash user (MACUs) declined by 42 percent YoY, while the average revenue per user (ARPU) increased by 64 percent in November last year. The increase in ARPU was driven by decline in fantasy sports contribution which has a lower ARPU, while other game types with higher ARPU have grown.

Fantasy sports grew 28 percent month-on-month in November, reaching Rs 550 crore, despite a YoY decline. Growth was driven by more matches in international leagues including Big Bash (an Australian men's professional club Twenty20 cricket league), and higher engagement in India versus South Africa. MACUs increased by 29 percent and ARPU stagnated at roughly the same levels as October 2024.

The Online Rummy Market (GGR) de-grew 8 percent MoM in November 2024 to reach Rs 1,570 crore, driven by reduced engagement, fewer games, and a shift to lower-value games. Despite stable active cash users at a daily run rate, ARPU dropped by 5 percent.

Casual Games GGR grew 6 percent MoM in November last year to Rs 505 crore, with MACUs increasing by 7 percent while user spending maintained the same trend as October 2024.

GST pangs

The report pointed out that improving Net Gaming Revenue (NGR) levels has become a key focus for online gaming platforms due to revised GST regulations in the October-November-December (OND) period of 2023.

NGR improved from OND quarter 2023 to reach 35 percent of GGR in July-August-September 2024, despite a 192 percent increase in GST taxations.

Marketing expenses were also reduced to enhance profitability at an industry level.

Fantasy sports app Vision 11 grew 53 percent MoM in November last year in terms of GGR, driven by a 50 percent rise in Non-Indian International Games and 100 percent growth from the Pro Kabaddi tournament.

Rummy platforms saw MoM decline. Gameskraft Rummy fell 10 percent, Rummy Circle by 9 percent, Junglee Rummy 6 percent, and Ace'23 by 3 percent, with drops driven by lower ARPU, fewer active users, and a shift to lower-value tables.

Poker platforms saw modest growth in November last year. PokerBaazi grew 4 percent MoM, driven by organic user growth and the GOAT (greatest of all time) tournament, while Jungles Poker and PokerStars posted 1 percent MoM growth, focusing on organic acquisition after reducing ad spends.

Casual games grew steadily in revenue. Zupee, a multiplayer gaming app, rose 7 percent, fuelled by STANFEST 2024 sponsorship; MPL grew 5 percent, driven by marketing and WinZo grew 4 percent gaining new users despite a slight ARPU dip.