Mumbai: The Real Money Gaming (RMG) industry in India has brought about a revolutionary transformation in the world of sports. While allowing sports enthusiasts to engage with their favourite teams and athletes like never before, they have also brought in a wide variety of newer audiences, thereby generating huge additional revenue for both the sport and the sportsperson. India’s exhilarating performance at the recently concluded ICC Cricket World Cup 2023 led to a 40 per cent surge in user engagement on the MyTeam11 platform alone.
A report by Delloite FIFS highlighted the RMG industry’s potential to create over 5,000 direct and 7,000 indirect jobs. Quite the contrary however, as the GST council notification which came into effect on October 01, 2023, imposing the highest 28 per cent Goods and Services Tax (GST) on the deposits, whether one of skill or chance, acted as a huge setback. We believe no industry has ever faced a situation where tax liabilities have headed north to the extent of 400-1000 per cent in one go.
Be that as it may, MyTeam11 has always believed in thinking innovatively and out of the box to circumvent business challenges. Positive thinking often helps resolve the most difficult of problems.
The company absorbed the entire tax liability, choosing not to pass it on to the users. This showcased the platform's dedication to provide an enjoyable and uninterrupted experience to fantasy sports enthusiasts, as also towards contributing to the overall growth of the industry.
Then from a long-term sustainability perspective, MyTeam11 came up with the real game-changer- the Fantasy Sports Network (FSN). As the industry navigated through challenges such as layoffs and closures, MyTeam11's FSN emerged as a lifeline, particularly for the smaller players.
Operating both B2C and B2B models, the FSN provided a robust technology backbone that empowered emerging players to overcome the complexities posed by the new tax regulations. As a result, as many as 10 FSN partners today have experienced a significant reduction in their operational costs and also a remarkable 300 per cent increase in user engagement.
The true advantage of FSN lies in empowering partners and enabling them to focus extensively on marketing and promotion. This exposure extends to larger leagues, allowing them to operate efficiently with lean teams and effectively navigate challenges brought by the new GST Amendment.
There is no doubt that the industry is facing huge uncertainties. However, given MyTeam11’s spirit of innovation, the platform remains committed to driving positive change to maintain its leadership position in the RMG industry.
