Days after the Parliament passed a law that made real money-based online games illegal, a key player in this sector, Dream11, has informed the BCCI that it will no longer be able to sponsor the national team, leaving Indian cricket on the lookout for a new partner with just a fortnight left for the Asia Cup in Dubai.
“(Representatives of) Dream11 visited the BCCI office and informed CEO Hemang Amin that they won’t be able to continue… As a result, they won’t be the team’s sponsors for the Asia Cup. The BCCI will float a new tender soon,” a BCCI official
According to another official, the pullout will not attract any penalty since the contract includes a clause which stipulates that if the sponsor’s core business is impacted by any law brought by the Government, they “won’t be liable to pay anything” to the cricket board.
Reportedly, the pullout will not attract any penalty since the contract includes a clause which stipulates that if the sponsor’s core business is impacted by any law brought by the Government, they “won’t be liable to pay anything” to the cricket board.
Dream11 was started 18 years ago and became the biggest fantasy gaming platform in the country, with a valuation of $8 billion, according to Bloomberg. It acquired the rights to become the BCCI’s lead sponsor in a three-year deal worth Rs 358 crore in July 2023, taking over from educational technology venture Byju’s.
Dream11 acquired the rights to become the BCCI’s lead sponsor in a three-year deal worth Rs 358 crore in July 2023, taking over from educational technology venture Byju’s.
Dream11 also has a big presence in the IPL with deals across franchises. Several top players have been its brand ambassadors, including Mahendra Singh Dhoni, Rohit Sharma, Hardik Pandya, Rishabh Pant and Jasprit Bumrah. In 2020, it became the IPL’s title sponsor when Chinese firm Vivo pulled out.
Dream11’s footprints extend beyond Indian borders, too.
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It’s the official fantasy partner of Caribbean Premier League as well as title sponsor of Super Smash, New Zealand’s domestic T20 competition. It’s also involved in the Australian domestic T20 competitions, Big Bash League and Women’s Big Bash League. In 2018, Dream11 announced a partnership with the International Cricket Council.
Dream11 has been involved in football and basketball, as well. It’s the official fantasy partner for the Indian Super League, the top-tier football competition in the country that’s in a limbo right now. In 2017, the National Basketball Association launched its official fantasy game on the Dream11 platform. The Pro Kabaddi League, and the International Hockey Federation have also entered into deals with the online gaming company.
Dream11 was the official fantasy partner for the Indian Super League, the top-tier football competition in the country that’s in a limbo right now
Impact of the Online Gaming Bill
As soon as the online gaming Bill was passed in Parliament, Dream11 had announced that it had suspended all paid contests on its platform and would operate only free-to-play online games.
Real-money fantasy gaming, which is at the core of Dream11, requires its customers to select a playing XI of players and compete against each other using statistics from a live match. Online gaming websites charge a fee for entering a team, and the contestants, who have to submit their PAN card, bank details and other personal information, win or lose money based on the real-life performances of players.
While bringing the new law, the Government cited psychological distress, financial loss, money laundering and even financing of terrorism as reasons to prohibit “harmful” real-money gaming services.
“Unchecked expansion of online money gaming services has been linked to unlawful activities including financial fraud, money-laundering, tax evasion and in some cases, the financing of terrorism, thereby posing threats to national security, public order and the integrity of the State,” the Bill stated.
