68% people want govt to regulate online fantasy sports: Survey

The report by LocalCircles further estimates that the industry has potential to attract FDI of more than Rs 10,000 cr over the next few years as well as generate 1.5 bn online transactions

As many as 68 per cent citizens want the government to create guidelines or code of regulation for online fantasy sports platforms (OFSPs), according to a survey by community platform LocalCircles, which sought to understand the perception of the increasingly popular fantasy sports genre. 

Quoting a recent KPMG report, the NITI Aayog, in its discussion paper on regulation of online fantasy sports platforms, launched in December, said the number of users participating in online fantasy sports in India has grown at a compounded annual growth rate (CAGR) of 212 per cent, from 2 million users in June 2016 to 90 million users in December 2019. 

The report further estimates that the fantasy sports industry has the potential to attract foreign direct investment of more than Rs 10,000 crore over the next few years as well as generate 1.5 billion online transactions by 2023.

On the administration of the regulation, though 49 per cent support self-regulation, 34 per cent want government to be the regulator also.  

Responding to a question that sought to understand the perception of citizens about how Online Fantasy Sports Platform should be regulated, 17 per cent said “self-regulation basis industry’s code of regulation”, 32 per cent said “self regulation basis government’s guidelines or code of regulation”, 34 per cent said “creation of a government regulator who administers compliance to government guidelines or code of conduct”, while 17 per cent had no opinion on the matter. 

The survey received more than 50,000 responses from over 21,000+ unique citizens located in 309 districts of India. 47 per cent respondents were from tier 1 districts, 29 per cent from tier 2 districts and 24 per cent from tier 3, 4 and rural districts of India. 69 per cent respondents were men while 31 per cent were women. 

About 12 per cent respondents said they either play online fantasy sports or have someone in the family playing it. 

Interestingly, only 12 per cent respondents said online fantasy sports qualifies as skill gaming, while 67 per cent classify it as gambling. Though courts in India have largely given their decisions in favour of Online Fantasy Sports platforms calling them skill gaming instead of gambling, sixc states in India- Assam, Odisha, Telangana, Nagaland, Sikkim and Andhra Pradesh have banned fantasy sports. 

The aggregate findings of the poll suggest that only 36 per cent of the respondents wanted online fantasy gaming platforms to be allowed to advertise as they are currently, and most of the want appropriate visible and audible warnings in place. 

As many as 54 per cent of the respondents said that OFSPs “should not be permitted to show advertisements at all”.

The NITI Aayog paper from December had suggested the government consider a "light-touch regulatory framework for the fantasy sports industry given the dynamic and technical nature of the activities. This approach will be facilitative of market-creation and market-growth. Self-regulation must also be the preferred mode of governance to ensure ongoing transparency, consumer protection, and accountability".