From Spectator to Strategist: The Evolution of Fantasy Sports

It starts with checking your team’s lineup at breakfast. By lunch, you’re swapping a player, chasing points, second-guessing last night’s pick. Come game time, every run, goal, or basket feels personal. Fantasy sports take the fan off the couch and closer to the game. Suddenly, you’re not just watching—you’re drafting players, setting lineups, and scoring points based on real performances. It’s the thrill of being part of the action, without stepping onto the field.

What Exactly is Fantasy Sports?

At its core, fantasy sports is a strategy-based online game where fans create virtual teams made of real players. Each player has a value that changes based on performance, and you work within a set budget to pick your squad. Teams earn points based on actual performances in live matches—so every goal, run, or basket counts.

Success depends on knowledge, research, and decision-making, rather than pure chance. Unlike betting, where outcomes hinge largely on luck, fantasy sports rewards skill—selecting in-form players, anticipating matchups, and managing lineups. Fans become decision-makers, experiencing the thrill of running a team while engaging more deeply with the sport.

Fantasy Sports Take Over the World – Including India

Fantasy sports began gaining traction in the US and UK, with millions of fans participating annually. It started with the NFL embracing digital platforms and partnerships with fantasy providers, fueling growth.

The most popular fantasy sports game today is Fantasy Premier League (FPL) in the UK. Launched in 2002 with 76,000 players, FPL now boasts over 11 million participants globally, driven by the Premier League’s international reach, including in India.

In India, fantasy sports align perfectly with cricket’s massive following. The market was INR 3,700 crore (USD 450 million) in 2023, projected to reach INR 19,500 crore (USD 2.4 billion) by 2030. The user base exceeded 180 million in 2023, projected to hit 300 million by 2026. This growth is fueled by affordable mobile data, smartphone adoption, and popular leagues like the IPL. Platforms like Dream11, MyTeam11, and MPL let fans manage virtual teams and compete for rewards.

How AI and Data Are Changing the Game

Fantasy sports today has evolved far beyond gut feeling. Fans track advanced metrics like expected goals (xG), expected assists (xA), and player heatmaps to make smarter decisions. AI-powered tools like Opta analyze vast amounts of data to suggest optimal lineups, highlight hidden opportunities, and predict player form.

AI “expert advice” is especially evident in FPL, guiding millions weekly. Casual fans now access insights previously reserved for seasoned analysts, making strategy more precise and competition tougher.

With AI and data, fantasy sports is a game of skill and strategy. In contrast, traditional sports betting relies more on luck, chance, and odds, offering a very different fan experience.

Chance vs Skill: Inside Sports Betting

Unlike fantasy sports, sports betting is largely chance-based. Fans wager on game outcomes, hoping to win money based on predictions. Payouts depend on odds, set by bookmakers like Bet365 (UK) and DraftKings (US).

Odds reflect probabilities and balance risk for the bookmaker. A heavily favored team has low odds (small payout), while an underdog has high odds (bigger payout). These odds shift in real time, including during the game, responding to goals, injuries, and momentum swings—keeping bettors on their toes.

Sports betting is thrilling but riskier than fantasy sports, as luck plays a bigger role and outcomes are beyond player control. Legal and tax uncertainties also add complexity.

Playing by the Rules: Taxes and Laws Around Fantasy Sports and Sports Betting

United Kingdom

- Sports Betting

Legality: Fully legal and regulated by the UK Gambling commission

Taxation: Gambling winnings are not taxed for individuals, regardless of whether they are recreational or professional gamblers. However, operators like Bet365, William Hill are taxed 25% on profits

- Fantasy Sports

Legality: Legal and regulated under the UK Gambling Act 2005. Platforms offering monetary prizes must obtain a license from the UK Gambling Commission.

Taxation: If classified as gambling , winnings are not taxed for players similar to Sports Betting. However, Fantasy Sports platforms are subject to the same 25% tax on profits as other gambling operators

United States

- Sports Betting

Legality: Legal in many states following the 2018 Supreme Court decision that struck down a federal ban. States have the authority to regulate sports betting individually.

Taxation: Winnings are fully taxable at the federal level, with a 24% withholding tax on significant winnings. States may impose additional taxes, leading to rates as high as 51% in New York.

- Fantasy Sports

Legality: Legal in most states, with platforms like DraftKings and FanDuel operating legally in many jurisdictions.

Taxation: Winnings are considered taxable income and must be reported by individuals to the IRS.

India

- Sports Betting

Legality: Largely illegal, with the Public Gambling Act of 1867, prohibiting most forms of gambling. However, some states like Sikkim and Goa have legalized betting under specific regulations.

Taxation: Where legal, winnings are taxed as “Income from Other Sources” at 30% plus cess. Illegal betting remains prevalent with over half of the Indian gambling market being unregulated.

- Fantasy Sports

Legality: Recognized as a game of skill, making them legal. The Supreme Court of India upheld this decision in 2021. However, state level regulations vary with some states imposing bans or requiring licenses

Taxation: Subject to 28% Goods and Services Tax (GST) on total player deposits wth operators like Dream11 and MPL. Additionally, 30% Tax Deducted at Source (TDS) is applicable on winnings above 10,000.

Conclusion

Fantasy sports have transformed fans into managers, combining strategy, data, and excitement that goes far beyond traditional cheering. From global growth and AI-powered insights to a clear skill-based approach compared with sports betting, fantasy sports offer a unique, engaging, and regulated way to experience games. For fans, it’s not just watching—it’s being part of the action.