In the next few months, we will witness some big-ticket events in India - the ICC World Cup, Indian Premier League, Pro Kabaddi and many more. India, as IMF says, is the “bright spot” for global growth in 2023-24. It’s no surprise that an Indian actress, Deepika Padukone unveiled the FIFA World Cup Trophy recently. With all this buzz in the sports sector, here’s Compliance Calendar’s take on what this holds for businesses in the sports and allied sectors. In this article, we cover the big picture of the sports industry in India, analyze possible startup ideas and take a look at recent rules governing online gaming in India.
Sports in India - a $100 billion industry
The sports industry in India is one of the fastest-growing sectors in the country. It currently stands as a massive $100 billion industry. Sports as a sector has consistently witnessed an increase in both commercialization and investments. This makes it a viable industry for not just sports stars and broadcasting agencies but entrepreneurs and investors alike.
The growth story of India’s booming sports enthusiasm
The growth of the Indian sports industry can be attributed to increased government support and investments. The Khelo India games, Fit India movement, and the Target Olympic Podium Scheme (TOPS) are some key initiatives.
Increasing private initiatives has also enabled greater access to sports for the Indian audience. Another factor has been the rise in consumer spending on sports gear, smartwatches, and professional equipment. Corporate sponsorships via CSR have already added to the growing sports enthusiasm in India.
Sports broadcasting - an Rs. 4360 crore revenue-generating sector in India
Major reports indicate that the expected revenue for sports from digital platforms in the next three financial years, could possibly touch a figure of ? 4360 crores. With decentralized OTT platforms mushrooming, sports broadcasting and sponsorships are major businesses. India, with more than 200 languages, lacks regional dialect representation.
With more OTT and broadcasting platforms, especially those catering to rural, semi-rural, and local language commentaries, sports broadcasting could take a new spin in the coming months.
Online Gaming and Sports Industry - Apps in the sports revolution story
Online and mobile based gaming, also called “E-sports” now are fast becoming a major competitive sporting field, with a CAGR of 38%. ‘Online gaming’ has recently received recognition by the Ministry of Electronics and Information Technology. The revenue of the Indian mobile gaming industry is expected to reach USD 5 billion in 2025. This includes games like real-time winner prediction in matches, fantasy sports, etc.
Draft Rules for Online Gaming
In January 2023, the government floated draft rules for online gaming apps, recognising the disruptive potential of gaming and sports apps. The proposed rules have been introduced as an amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
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These rules include a ban on games that promote violence, gambling, or any other activity that is detrimental to the public interest.
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Online gaming firms will be required to undertake additional due diligence, including KYC of users, transparent withdrawal and refund of money, and a fair distribution of winnings.
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The rules also require online gaming companies to obtain a license from the government and to adhere to certain guidelines, such as age restrictions, responsible gaming, and data protection.
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They will also have to get a “no bot certificate” from a reputed certifying body.
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Additionally, the rules require online gaming companies to provide a mechanism for dispute resolution and to ensure that all players are treated fairly.
Investing in sports : Fitness Apps, Sports gear manufacturing and Allied segments
The increase in sports viewership and interest across all age groups, new opportunities for investors have been created. These include investments in sports-related businesses, such as sports apparel (like HRX), sports equipment (like Decathlon), sports media, and fitness apps (like CultFit, EatFit).
Sports entrepreneurship in India is a rapidly growing sector, and it is likely to continue to grow in the coming years. As more entrepreneurs enter the dynamic market of sports and entertainment, the opportunities for innovation and growth will only increase.
Sports entrepreneurship ideas for New India
While traditional sectors in the sporting industry are soaring in recent years, newer startup ideas in the sports industry possess transformative potential. Sports entrepreneurs could easily leverage India's vast young population, its growing economy, and its increasing interest in sports to create innovative business models and products.
Some of these include:
Sports Consulting firms, advising anyone from students, athletes, international organizations or sports clubs.
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Sports law practice
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Sports arbitration and dispute resolution
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Sports betting and gaming applications
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Sports copywriting
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Sports psychologists
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Sports traveling services
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Sportswear designing
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Diet and sport specific meal offerings
Looking to start your own sports business? Compliance Calendar is here to support you!
Creating new opportunities for athletes, coaches, and fans with new offerings in the sports industry is a lucrative business. Whether you’re a startup developing new technologies to improve the performance of athletes, creator of a new sports league, or a manufacturer of new products and services to meet the needs of the sports industry - we, at Compliance Calendar can make this journey smoother.
Our in-house experts understand the needs of your sports business. We make sure that you never miss any filings. Additionally, you can also speak to our lawyers, chartered accountants and company secretaries, to ensure you get the best of legal and financial advice. You can reach out to us at info@ccoffice.in should you wish to have a consultation or advisory services on the same.