In a decisive move, Dream11 is shutting its core real-money gaming business, responding directly to the newly enacted Online Gaming Bill 2025, which bans all money-based online gaming formats in India.
Why Dream11 Is Stepping Back
- Dream11’s real-money gaming (RMG) operations reportedly contribute over two-thirds of the company’s revenue. With the new legislation banning such services, Dream Sports (Dream11’s parent) has opted to wind them down.
- The shutdown was revealed during an internal town hall meeting, according to industry insiders.
Regulatory Reality Check
- The Online Gaming Bill 2025, now law, prohibits fantasy sports, poker, betting apps, and other games involving cash stakes. Violations carry penalties including up to three years in prison and fines reaching ₹1 crore, with personal liability extended to company promoters and directors.
- The bill also bans promoting such platforms, leading to sweeping industry upheaval.
What Dream11 Will Focus On Instead
- Dream Sports plans to pivot toward its non-real-money businesses: FanCode, Sportz Drip (formerly Sports Rhythm), Cricbuzz, and Willow TV.
- The company may also expand into overseas markets with new game formats, mirroring strategies of peers like MPL.
- This strategic shift will likely result in cost-cutting measures and significant layoffs, as the RMG division employed a majority of the workforce.
Broader Industry Fallout
- The bill also targets platforms like MPL, PokerBaazi, and My11Circle, putting hundreds of companies and over 200,000 jobs at risk
- Government data indicates that users lose nearly ₹15,000–20,000 crore per year on real-money gaming, reinforcing the rationale for the crackdown.
- Industry bodies argue that a blanket ban will drive users toward unregulated offshore platforms, raising concerns over consumer safety and tax revenue loss.The Economic Times
What’s Next for Dream11 and the Sector
- Dream11’s exit from RMG is a watershed moment, potentially accelerating the shift toward esports, fantasy content aggregators, and broader sports-tech innovation.
- Legal challenges are likely, as industry players might contest the scope of the bill in court, especially regarding the exclusion of “skill games.”
- All eyes will now be on how Dream11 redeploys capital and talent toward its non-RMG ventures, and whether the government encourages alternative gaming models.
