Dream11 exits BCCI sponsorship deal as real money gaming ban hits revenues

New Delhi: Fantasy sports giants Dream 11, which recently shut down its real money games after central government passed the 'Promotion and Regulation of Online Gaming Bill 2025' in both the Houses of Parliament, has intimated to the BCCI that it won't be able to continue with the title sponsorship of the Indian cricket team as the revenue stream is going to get hit badly.

The PTI was the first to report on August 20 that cricket's revenue stream could be badly hit by the new bill as Dream 11 and My11Circle jointly contribute about Rs 1000 crore to BCCI through title sponsorship of Indian cricket team and Indian Premier League.

Dream11 has a 2023-2026 contract of USD 44 million (Rs 358 crore) for being the title sponsor of the Indian cricket team.

However, after the government bill was passed stating that "no person shall offer any, aid, abet, induce, indulge, engage in offering online money gaming services nor shall involve in any advertisement which directly or indirectly promotes any person to play any online money game", it served as a death knell to the main revenue stream of all major fantasy sports companies in India."

While BCCI secretary Devajit Saikia declined to comment on the development, it is understood that Dream11 might not have to pay any hefty penalty as the contract with the Indian board has a specific clause about getting a waiver in case there is a government regulation in place.

Dream11 is also the official fantasy partner of the Indian Super League.

While the new bill allows social gaming and subscription based use, the real money gaming's ban means that the biggest chunk of their revenue stream is done away with.

In a recent statement issued after the law was passed in the Upper House of Parliament, Dream 11 stated: "We have always been a law abiding company and have always conducted our business in compliance with the law. While we believe that progressive law would have been the way forward, we will respect the law and fully comply with 'Promotion and Regulation of Online Gaming Bill 2025'.

"The writing was always on the cards once the real money gaming was banned in the bill. That itself accounts for at least 90 percent of the revenue of all major players in the fantasy market. The next interesting phase will be what My11Circle which pays Rs 125 crore annually to BCCI for being official fantasy partner of IPL do? They might also have to go the Dream11 way. As far as individual endorsement of cricketers with various apps are concerned, that market will also be severely hit," a fantasy gaming industry insider told PTI on condition of anonymity.