It began with cricket, as many things do in India. One moment, Ramesh from Pune was picking his Dream11 lineup for the next IPL game; the next, he was Googling “TDS on fantasy sports winnings.” What started as harmless fun has grown into a murky financial minefield—where tax departments, platforms, and players are all second-guessing the rules.
The fantasy boom didn’t just stop at Dream11. Even hybrid platforms like Jawhara Bet, originally focused on sportsbook betting, jumped into the fantasy pool. The user base: everyone from college kids to corporate managers.
The winnings…sometimes life-changing. But so are the questions that follow: “Is this income?” “Will I get a notice?”
And so, fantasy cricket in India now plays out on two fields—the stadium and the spreadsheet. Let’s step off the pitch and look behind the scoreboard. Because the real scorekeeper now wears a tax badge.
Taxman’s Blind Spot? Not Anymore
For years, fantasy sports winnings flew under the radar. Not because the tax system didn’t exist, but because no one thought to aim it at these kinds of games. The Income Tax Department wasn’t exactly checking Dream11 leaderboards in 2019. But 2023 changed everything.
The Indian government, in its wisdom (and need for revenue), declared that any winnings from online games—fantasy or not—would be subject to a flat 30% tax under Section 194BA, effective 1 April 2023. That’s right, 30%—no matter how small your prize pool or how many games you lost before you won.
Here’s the current tax breakdown for Indian fantasy sports players:
| Category | Tax Rate | Applicable Law | Notes |
| Fantasy sports winnings | 30% | Section 194BA | No basic exemption, flat rate applies |
| Winnings below ₹100 | 0% | Platform rule | Some platforms don’t deduct under ₹100 |
| Cumulative annual winnings | 30% | Total > ₹0 | No minimum threshold for taxation |
| TDS deduction at payout | Yes | Auto-enforced | Platforms like Dream11 auto-deduct TDS |
| GST on entry fee (18%) | Shared | Player & site | Usually embedded into game fees |
And this isn’t just on paper. In August 2023, the Income Tax Department issued notices to over 30,000 individuals who failed to declare fantasy sports and online gaming winnings.
One of the most publicized cases involved a Hyderabad-based techie who won over ₹1.2 lakh across platforms like Dream11 and MPL. He was slapped with a penalty and interest for not reporting it in his ITR, despite the platforms having deducted TDS (Source: Economic Times, Aug 2023).
Lesson learned? Even if the game ends, the taxman still bats last.
Platforms: The Middlemen Now Wearing Suits
Fantasy platforms used to be cool. They still flash Sachin’s smile in ads and slap IPL logos on everything short of parathas. But backstage? They’re sweating bullets. Because now, they’re tax agents.
To comply with the new Section 194BA rules, platforms had to evolve—fast. That meant building automatic TDS deduction systems, integrating PAN verification at registration, and issuing tax certificates post-payouts.
Overnight, they became less like playgrounds and more like fintech firms wearing cricket jerseys. This didn’t just raise their compliance costs—it also shoved everyday users into India’s favorite national sport: bureaucracy.
Key compliance changes on top fantasy platforms (2023–2025):
| Platform | PAN Required? | Auto-TDS Deduction | Tax Certificate Available? | GST Included in Fees? |
| Dream11 | Yes | Yes | Yes (Form 16A) | Yes |
| MyTeam11 | Yes | Yes | Yes | Yes |
| MPL | Yes | Yes | Yes | Often yes |
| Gamezy | Yes | Yes | No | Varies |
| BalleBaazi | Yes | Yes | Yes | Yes |
| Jawharabet | Yes | Yes (for fantasy) | Depends on amount | Yes (if applicable) |
Even JawharaBet, better known for sportsbook and casino action, has stepped cautiously into fantasy territory. Though not their flagship feature, Jawhara.bet now requires KYC and deducts TDS on winnings—making sure they’re not the weakest link when audits come knocking.
The message is clear: If you thought fantasy sports were just cricket with extra dopamine, think again. It’s paperwork in a jersey.
Players Caught in the Middle (and Sometimes in Trouble)
But here’s the real kicker: most players still don’t know. Or worse—they believe tax rules don’t apply to them.
Casual users—especially those who only log in during IPL season—often assume that taxes are reserved for “big winners.” But that’s not how the Income Tax Department sees it. For them, it’s all about cumulative totals, regardless of the size of any single prize. And if you don’t report those totals, the system is increasingly built to catch you.
Common mistakes Indian fantasy players make with taxes:
- Assuming only winnings above ₹10,000 are taxable (incorrect—under Section 194BA, even ₹1 is taxable).
- Not linking PAN, hoping to avoid notices.
- Withdrawing in small increments to stay under the radar (doesn’t work—platforms report full totals).
- Filing Income Tax Returns without declaring online gaming income.
- Using a friend’s bank account or UPI to “disguise” the source of winnings.
And this isn’t just theory.
In November 2023, a 28-year-old marketing executive from Bengaluru received a notice from the Income Tax Department for undisclosed winnings amounting to ₹78,000 over the year, spread across Dream11 and MPL’s fantasy section.
Despite each transaction being below ₹10,000, the cumulative total triggered reporting from the platforms under the new 194BA rule. He had filed an ITR-1 (meant for salaried income only), omitting the winnings entirely. The result: a tax demand with interest, plus a flagged return for future audits.
As fantasy sports continues to blur the line between entertainment and income, players ignoring tax obligations may find the real game starts after the prize money hits their account.
Conclusion
Fantasy sports is addictive not just because of the thrill, but because it feels harmless. It was the guy-next-door’s lottery, the cousin’s cricket IQ proving useful, a lunch break adrenaline fix. But what was once play is now revenue. And where there’s revenue, there’s tax. And where there’s tax, there’s trouble—especially if you’re unaware, underprepared, or unlucky.
Indian fantasy players are not criminals. But they’re being caught in a system that evolved faster than the rules were explained. Platforms are now bureaucrats. Players are now taxpayers. And winnings come wrapped in forms.
So, is the danger real? Absolutely. But with knowledge, it doesn’t have to be fatal.