Winning Bizness Desk
Mumbai. Before the Asia Cup 2025 starts on September 9, Dream11 has decided to stop being the lead sponsor for the Indian cricket team. Reports from NDTV say that the Indian team's jersey might not show Dream11 branding during the tournament. This move comes after the new online gaming bill passed in 2025, which bans platforms like Dream11 that involve real money gaming.
Contract Details and Financial Terms
In 2023, Dream11 signed a three-year sponsorship deal with the BCCI worth 358 crore rupees, lasting until 2026. Under this agreement, the BCCI received 3 crore rupees for each home match and 1 crore for each away match. With the contract ending early, the BCCI is now preparing to start a tender process to find a new sponsor.
BCCI Response to Government Policies
BCCI secretary Devajit Saikia stated that the board always follows central government policies. If continuing the sponsorship goes against the new rules, the board will not take any steps to keep it. So far, there has been no official confirmation from either the BCCI or Dream11 about this decision.
Impact on Dream11 Revenue Sources
Dream11 gets 67 percent of its income from the real money gaming segment. This includes fantasy cricket games where users pay to create teams and win cash prizes. The new bill makes these games illegal, forcing Dream11 to shut down paid contests.
Shift to Non-Real Money Ventures
Company CEO Harsh Jain told employees that there is no legal way to continue real money gaming under the new law. Dream11 will now focus on non-real money options like Sports Drip and FanCode. It also plans to grow investments in Willow TV, Cricbuzz, and expand into foreign markets.
Bill Receives Presidential Approval Recently
The Online Gaming Bill 2025 got approval from the President on August 22. It became law after passing in the Rajya Sabha on August 21 and the Lok Sabha a day earlier. Electronics and Information Technology Minister Ashwini Vaishnaw presented the bill in parliament.
Four Key Strict Rules in Law
The law bans all real money games, whether based on skill or chance. Offering or promoting such games is illegal, but players face no punishment. Violators can get up to three years in jail and a fine of 1 crore rupees. Advertisers may face two years in jail and 50 lakh rupees fine. A new authority will regulate the industry, register games, and decide what counts as real money gaming. It will promote e-sports like PUBG and Free Fire, which do not involve money.
Government Concerns Over Economic Harm
The government says real money online gaming causes mental and financial damage to people. Some get addicted, lose life savings, and there have been reports of suicides. There are also worries about money laundering and national security risks.
Market Revenue and Future Impacts
India's online gaming market is worth about 32,000 crore rupees, with 86 percent coming from real money formats. It was expected to reach 80,000 crore by 2029, but now companies must stop these games. Industry experts warn that this could put 2 lakh jobs at risk and cause the government to lose crores in tax revenue each year.
Story in a nutshell-
- Dream11 ends its sponsorship deal with Team India due to new gaming law.
- Original contract worth 358 crore rupees until 2026 now terminated early.
- Online Gaming Bill 2025 bans all real money gaming platforms.
- Dream11's 67 percent revenue from the real money segment affected severely.
- Company shifts focus to non-money ventures and international expansion.
- Law includes penalties up to 3 years jail and 1 crore fine.
- Government cites addiction, financial losses, and security risks as reasons.
