New Delhi, Apr 18 (IANS): India's fantasy sports industry is likely to grow at 33 per cent CAGR and reach 50 crore users by FY27, a report showed on Tuesday.

The industry grew by 31 per cent to Rs 6,800 crore in FY22 and is expected to touch Rs 25,240 crore by FY27, according to the report by the Federation of Indian Fantasy Sports (FIFS) in collaboration with professional services firm Deloitte India.

With over 300 fantasy sports platforms (FSPs) and 18 crore users, India is the fastest-growing fantasy sports market in the world.

About 60 per cent of user transactions on the fantasy sports platforms have come in through tier 2 and tier 3 cities.

The industry attracted Rs 15,000 crore in FDI till FY22 which is expected to touch Rs 25,000 crore by FY27.

It contributed Rs 4,500 crore by the way of taxes. This is expected to reach Rs 26,000 crore in the next five years, the report said.

"We are thankful to MeitY and believe that under their regulation, our industry will accelerate growth, spur innovation and contribute even more significantly towards nation building. We look forward to achieving PM (Narendra) Modi's vision for making India a global gaming superpower," said FIFS Director General, Joy Bhattacharjya.

The GST contributions from the fantasy sports industry is expected to increase by 5 times in the next five years, from Rs 2,800 crore in FY18-FY22 to Rs 14,700 crore between FY23-FY27.

"Our analysis suggests that fantasy sports hold tremendous potential to help build a resilient sports ecosystem in India and significantly contribute to the nation's digital economy," said Prashanth Rao, Partner, Consulting, Deloitte India.

The industry created high-skill jobs for 12,800 people across the economy, creating far greater impact on the society and larger ecosystem, the report noted.