Top Fantasy Sports Apps/ Business Model/ Revenue
Overview
India has 136.3 million sports fans, according to ETbrand Equity. Nowadays, people not only enjoy sports but also create their own teams on gaming apps. Many of you have either formed a team or heard the names of various platforms, such as Dream 11 and My 11 Circle. These gaming applications are referred to as fantasy gaming apps or fantasy sports apps. However, despite investing a million dollars in marketing, how do these gaming apps manage to generate such high profits? What is the business model of these fantasy gaming apps? What revenue do these fantasy companies generate, and which are the top 5 fantasy apps in India? Are you curious to find the answers to all the questions? So, let’s begin.
What is Fantasy Sports
Fantasy sports are online sports engagement platforms, such as Dream11, My11Circle, MPL, and many more, where users create imaginary or virtual teams of real players in professional sports. Participants receive fantasy points in accordance with the real statistics game. If your chosen players play well, you will score more points. It enhances sports knowledge because it requires an understanding of each player’s awareness and knowledge to form a great and strong team. Simultaneously, it makes engaging in sports.
Business Model of Fantasy Gaming Apps
Fantasy sports apps collect entry fees from contest participants. The fantasy sports team keeps 15–20% of these entry fees for themselves. Some of the collected entry fees go to fantasy sports teams, which contribute to the winning team. They use the remaining portion to cover their operating expenses, which include marketing, rent, electricity, and other related costs. This is the business model for fantasy sports apps.
Let’s understand this by calculation
Let’s assume there are 10 lakh app users, and every user pays 50 rupees in entry fees. Therefore, 10 lakh x 50 rupees equals 5 crore, and if the total prize money is 80%, or 4 crore, the remaining 20%, or 1 crore, represents their revenue, which they allocate to marketing and other operational costs. Finally, their profit makes up the remaining revenue.
How do fantasy companies earn millions of dollars?
Users’ dependency
These fantasy apps’ income is also dependent on users. If you have more users, then you will get more revenue.
Advertisements
These fantasy platforms also display advertising, which generates revenue for them.
Data selling
In order to increase their revenue, a lot of businesses sell aggregated user data to outside parties.
Commission
The majority of fantasy applications obtain their commission from the prize pool; occasionally, they do so through sponsorship and partnerships.
Are betting and fantasy gaming apps the same?
No, the Supreme Court of India has declared that fantasy games are skill-based games. The Supreme Court now recognises fantasy sports like Dream11 and My11 Circle as skill-based games under Article 19(1)(g) of the Indian Constitution.
The top 5 fantasy sports apps
Here is the list of the best fantasy gaming apps with their revenue and key features.
Dream 11 – The World’s largest fantasy sports
Dream11 is the best free entry fantasy app and also the largest fantasy sports platform in the world, with over 200 million users participating in fantasy baseball, American football, rugby, futsal, basketball, hockey, volleyball, handball, and cricket.
India’s best fantasy sports platform, Dream11, has generated Rs 6384 crore in revenue with a profit of Rs. 188 crore in FY23. Dream11 has become the most popular fantasy sports platform with its $8 billion valuation.
Key features
· Users – Almost 200 million
· Daily contest – over 1,000
· Revenue – ₹6,384 Cr (US$800 million) in FY23
· Valuation – $8 billion
My 11 Circle- Best Cricket and Football Fantasy Gaming App
My 11 Circle is one of the best Cricket and football fantasy gaming apps in India, with over 13 million users. My11Circle is an online fantasy game for those who like to showcase their cricket knowledge and analytical skills.
My11Circle is operated by Play Games 24×7 Pvt. Ltd and its revenue is almost 1,546 in FY22 at a valuation of US $2.5 billion. In addition, My 11 Circle has distributed over ₹1 billion in winnings.
Key Features
· Users – Almost 4 Crore
· User Rating- 4.3 out of 5
· Fantasy app – Both Cricket and Football
· Valuation – Around US $2.5 billion
MyTeam11- A multilingual fantasy sports app
MyTeam11 is India’s most trusted fantasy sports app that allows you to play games like basketball, hockey, rugby, football, cricket, and soccer in 9 different languages on its platforms. With over 18 million downloads, the MyTeam11 app offers about ₹5 million in daily prizes through more than 100 contests.
In addition, MyTeam11 also gives users a ₹100 welcome bonus. According to Growjo, “Myteam11 Fantasy Sports Private Limited’s estimated annual revenue is currently $13.6 million per year.”
Key Features
· APP Downloads – Almost 18 million
· Daily Prizes – about ₹5 million
· Welcome Bonus – Gives users a ₹100 welcome bonus
· Revenue – Almost $13.6 million per year
Fan2Play – Fastest-growing fantasy sports app
Fan2Play is one of the fastest-emerging ‘Gaming’ platforms. Since its launch in 2020, they have attracted over 5 million users through multiple fantasy games, including cricket, football, and Kabaddi.
It is a full-featured gaming platform that provides full support to its users, with 24×7 availability for various online games. As of March 31, 2022, Fan2Play has generated $447K in revenue.
Key Features
· Registered Users – About 5 million
· Various online gaming platform
· Revenue – $447K in FY22
· User support – 24*7
MPL Fantasy Cricket – India’s biggest mobile ESports platform
Mobile Premier League (MPL) enables players to take part in both free and paid tournaments across more than 60 games in various categories, including fantasy sports, sports games, puzzles, casual games, and board games. Mobile Premier League (MPL) is one of the most popular and trusted mobile gaming platforms in India, with almost 90 million users across Asia, Europe, and North America. According to Tracxn valuation of MPL is $2.19 billion as on 21, August 2023, and revenue is $105 million as of 31, March 2023.
Key Features
· World’s leading mobile ESports platform
· Provides 60 games in various categories
· Registered users – almost 90 million
· Valuation – $2.19 as on 21, August, 2023
· Annual Revenue – $105million as on 31, March 2023
Future trends
Dream11, My11 Circle, My Team11, MPL, and Fan2 Play are all the fastest-growing fantasy sports apps in India. Statista’s report estimates the number of registered fantasy sports users in India to be 180 million in FY23, with a projected increase to half a billion by FY27.
FAQs – Top Fantasy Sports Apps
1. What is Fantasy Sports
Fantasy sports are online sports engagement platforms, such as Dream11, My11Circle, MPL, and many more, where users create imaginary or virtual teams of real players in professional sports.
2. Which is the Best Cricket and football fantasy gaming app?
My 11 Circle is one of the best Cricket and football fantasy gaming app in India, with over 13 million users.
What is the revenue of Dream11?
Dream11 has generated Rs 6384 crore in revenue with a profit of Rs. 188 crore in FY23. Dream11 has become the most popular fantasy sports platform with its $8 billion valuation.
Are betting and fantasy gaming apps the same?
No, the Supreme Court of India has declared that fantasy games are skill-based games. The Supreme Court now recognizes fantasy sports like Dream11 and My11 Circle as skill-based games under Article 19(1)(g) of the Indian Constitution.
