Fantasy sports behemoth Dream11 has abruptly terminated its INR 358 crore (US$41 million) contract as the lead sponsor of the Indian national cricket teams.
This significant decision is a direct consequence of the Indian government’s recently passed Promotion and Regulation of Online Gaming Bill, which has introduced a sweeping ban on all forms of real-money online gambling.
The move sends shockwaves through India’s sports and gaming industries and leaves the national cricket team without a primary jersey sponsor just weeks before the start of the T20 Asia Cup.
The new legislation has fundamentally altered the operational landscape for companies like Dream11. Previously, the platform navigated India’s complex legal system by defining its fantasy sports contests as “games of skill,” thereby distinguishing them from games of chance, or gambling.
However, the new bill closes this loophole, prohibiting nearly all online games involving monetary stakes.
In response, Dream11 has been forced to pause all its paid contests, a business segment that reportedly accounts for over 90% of its total revenue.
This operational halt has made its high-value sponsorship commitments, such as the deal signed in July 2023 with the Board of Control for Cricket in India (BCCI), untenable.
In a statement posted on LinkedIn, a company spokesperson affirmed Dream11’s commitment to legal compliance. “We have always been and will always be a law-abiding company,” the post read, adding, “While we believe that progressive regulations would have been the right way forward, we will respect the law.”
This development is the most significant commercial fallout from the new bill so far, which authorities are enforcing vigorously, as seen with recent raids conducted by the Enforcement Directorate on other figures in the gaming sector.
