Dream11 warns of financial hit after India bans real money gaming
Fantasy sports operator Dream11 has said its revenues dropped by 95% overnight after India’s new Promotion and Regulation of Online Gaming Bill, which bans real money gaming, was passed.
Dream11 Chief Executive Harsh Jain told Moneycontrol that the new legislation has devastated the firm’s revenues, saying, “95% of Dream11’s revenues have disappeared overnight, and 100% of our profits…”
Dream11 also informed the Board of Control for Cricket in India that it cannot continue as the title sponsor of the Indian cricket team after Parliament passed the bill.
The company currently holds a US$44 million contract covering 2023 to 2026, which places its logo on players’ jerseys. Dream11 also sponsors multiple Indian Premier League franchises and is the official fantasy partner of the Indian Super League and Caribbean Premier League.
However, Jain confirmed the company would not reduce headcount despite financial pressure. “We are not interested in doing any layoffs. All the talent here is safe,” he said.
The new bill permits social gaming and subscription-based models but bans real money gaming, cutting off what Jain called the company’s “biggest chunk” of income.
Dream11 had earlier hinted at difficulties after the legislation passed, though this is the first indication that it will exit its most high-profile sponsorship.
The company’s decision highlights the immediate impact of India’s gaming restrictions on operators that rely heavily on paid fantasy sports.
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Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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