Dream 11 shuts real-money gaming arm.
With over 280 million registered users, Dream 11. It was founded in 2008 by Harsh Jain and Bhavit Sheth. They have dominated the fantasy sports market in India. Due to record-breaking engagement during the men’s cricket World Cup. The platform generated over ₹9,600 crore in revenue in FY24 alone.
It’s the end of an era at Dream11. The largest fantasy sports platform in India.
After Parliament approved the new Online Gaming Bill. Which outlaws all real-money games. The company is getting ready to close its real-money gaming division.
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End of Dream11 real money games.
Sources claim that Dream Sports CEO Harsh Jain informed staff members in an internal communication. There would be no legal way to carry on with business as usual after the law went into effect. A transition plan was presented to both contractual and on-roll employees. The company is now expected to focus on its other verticals, FanCode, DreamSetGo, and Dream Game Studios.
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Dream 11 real money fantasy sports History.
Given that Dream11’s paid fantasy competitions historically accounted for over 90% of Dream Sports’ revenue. The development represents a near-emergency for the company. With over 280 million registered users on Dream11. Harsh Jain and Bhavit Sheth founded Dream 11 in 2008. It dominated the fantasy sports market in India.
Due to record-breaking engagement during the men’s cricket World Cup. The platform generated over ₹9,600 crore in revenue in FY24 alone. However, verticals like DreamSetGo and FanCode continue to contribute much less. Highlighting how severely the new ban affects Dream Sports’ core operations.
Now, the situation of Dream 11.
ChyrsCap, Multiples, TCV, and Tiger Global, Dream Sports supported, was last valued at $8 billion in 2021. Dream11 experienced rapid growth and had strong cricket relationships. Including sponsorships of IPL titles and Team India alliances. However, the team is currently facing its most difficult phase to date.
On three crucial fronts, industry stakeholders are waiting for clarity:
Transition Period.
The amount of time businesses will have before the prohibition takes effect.
User Funds.
A system for returning deposits that are presently kept in escrow accounts.
Oversight Authority.
Will a regulator oversee the closure and permit shifts to social gaming or esports models?
The future of the biggest fantasy sports platform in India, which has millions of users, is uncertain until then.
