Real-money gaming platform SportsBaazi is looking to build a spectator gaming universe by offering new ways for fans to experience and interact with sports, chief executive Saurabh Chopra told Moneycontrol.
Encouraged by doubling of revenue and a rebranding exercise that helped bring back several old users who now actively engage with the app by spending time and money on it, the company wants to push the pedal and scale these game formats even as the sector struggles with a high good and services tax burden.
"We have plans such as building fan rooms and creating communities of Indian and global fans in a bid to complete the sports engagement landscape. That's where we are headed," Chopra said. "Obviously, some market dynamics also changed over the last six months, which pushed us to redo some parts of the product. For the past one-and-a-half years, it was all about building these new gaming experiences in terms of our product. We now want to expand the ecosystem."
In the longer term, the company plans to tap into cutting-edge technologies such as augmented reality (AR) and virtual reality (VR) to develop new gaming experiences for consumers.
"Inherently, we are more of a game research company than a game development company, wherein we are constantly trying to understand the evolving consumer behaviour and market trends in the ongoing advancement of technology. A few years down the line, youngsters would definitely want a much more immersive experience. A lot of our efforts and resources are going towards that end," Chopra said.
Tax burden
This move comes even as the sector remains in turmoil over the 28 percent goods and services tax on player deposits that was imposed in October 2023 and lack of clarity on the implementation of a comprehensive regulatory framework for real-money games, where the transfer of money is involved.
SportsBaazi's push comes on the back of revenue almost doubling to Rs 31 crore in FY23 from Rs 16 crore in FY22. It posted a profit of about Rs 4 crore in FY23.
SportsBaazi is owned by Baazi Games, which also operates the flagship online poker platform PokerBaazi and card games destination CardBaazi.
It started as a fantasy sports platform called BalleBaazi in 2018. However, amid rising competition in the fantasy sports space, the company diversified its offerings by launching a new category of skill-based games called Watch and Play in 2022.
"In fantasy sports, there's nothing to do (for a gamer) after the first ball of the match or the first kick-off of a football match is done. Hence, we saw an opportunity to design gaming experiences wherein people can continue engaging throughout the fixture," Chopra said.
Stats Fantasy was the first format introduced under the Watch and Play category, coinciding with the 2022 edition of the Indian Premier League cricket tournament. The format allows players to predict whether a statement related to a moment during a live match shown on a card will turn out to be true or false by the end of the game.
Last year, the firm introduced Player Stocks, which allows people to build a portfolio of players and trade based on the fantasy points their players earn real-time for their on-field performance in a match. It was rebranded to SportsBaazi in September 2023.
Read: India's real-money gaming sector had a rough 2023. Will 2024 be any better?
Fantasy format
To be sure, the classic daily fantasy team format, which is the most popular in fantasy sports, remains a significant revenue source for SportsBaazi. Chopra said the format, wherein people create a virtual team of sports players and enter paid contests to earn cash prizes based on their performance in real-life games, contributes to about 40 percent of its revenue.
Dream11, the flagship brand of sports tech firm Dream Sports, currently dominates the country's fantasy sports segment with an over 90 percent market share, according to industry estimates. The company acquired fantasy cricket stocks startup Sixer in October 2023. The platform currently allows users to buy and sell fantasy stocks in cricket players.
The SportsBaazi chief is optimistic about maintaining momentum in its revenue growth in the forthcoming years despite the significant impact of the new GST regime. The new tax rates are expected to significantly increase the tax burden of companies in the real-money gaming sector, thereby hurting their revenue and profitability in the future.
"The new taxation is definitely a problem for the industry and has resulted in a significant slowdown in the growth of digital gaming in India. But we have been fortunate to be able to step up and drive growth despite squeezed marketing spends," Chopra said. "What's good is that we did not become a burning ship, our growth compensated, and we have come back to sustainability."
Chopra added "While we are working hard to build a business around the new reality, I'm also very optimistic that (the government) will be seriously reviewing this (tax rates) after six months or so, as the finance minister had mentioned earlier. I think they should take a prudent decision, which is a win-win for both the exchequer and the operators."
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