Saturday, August 23, 2025

Dream11 to Shut Down Real-Money Gaming Business Amid New Online Gaming Bill

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Leading fantasy sports platform Dream11 (Dream Sports) is reportedly winding down its real-money gaming (RMG) business after the Indian government passed the Online Gaming Bill 2025, which imposes a complete ban on all online games involving monetary stakes. This ban covers fantasy sports, poker, betting apps, and even opinion trading platforms, marking a major regulatory shift for the country’s digital gaming industry.


Impact of the Bill on Dream11 and the Gaming Sector

According to sources, Dream11’s decision to stop RMG operations was announced internally during a recent town hall. Real-money gaming has been a crucial revenue booster for Dream11, contributing more than two-thirds of its annual income. With the Bill now law, platforms engaging in RMG will face severe legal consequences, including imprisonment of up to three years and fines up to ₹1 crore. Company directors and promoters could be personally liable unless they prove due diligence.

This development was first reported by Entracker.

The Bill also bans celebrity endorsements for such platforms, tightening rules to curb aggressive promotions. The legislation eliminates the longstanding debate between skill and chance-based games by imposing a blanket prohibition on money games, including those traditionally considered skill-based like fantasy sports.


Dream11’s Pivot Towards Non-Real-Money Ventures and International Markets

With RMG shut down, Dream11 plans to shift focus towards non-money gaming operations. These include its streaming platform Fancode, the gaming content platform SportzDrip, and its investments in Cricbuzz and Willow TV. The company is also expected to explore overseas markets, similar to the strategy adopted by Mobile Premier League (MPL), to diversify revenue streams.

However, this transition is expected to involve significant restructuring, including layoffs, as a large portion of Dream11’s staff was employed in the RMG business.


Financial Snapshot of Dream11

Dream11’s financial performance has been impressive until now. The company posted a revenue jump to ₹6,384 crore in FY23, up from ₹3,841 crore the previous year, with profits rising by 32% to ₹188 crore. The revenues primarily came from platform fees linked to fantasy contests—also known as gross gaming revenue (GGR). However, the company has yet to file official reports for FY24 and FY25.


Key Provisions and Latest Updates on the Online Gaming Bill 2025

The Online Gaming Bill 2025, recently passed by both houses of Parliament, establishes India’s first central regulatory framework for online gaming. It includes:

  • complete ban on real-money gaming across skill and chance-based platforms with monetary stakes.
  • Creation of a new statutory body, the Online Gaming Authority, tasked with regulating the sector, curbing addictive and fraudulent practices, and supporting legitimate esports and social gaming.
  • Harsh penalties for violations, including imprisonment ranging from 2 to 5 years and fines from ₹50 lakh to ₹2 crore.
  • Restrictions on financial infrastructure prohibiting payments for such games via banks, NBFCs, wallets, UPI, and payment gateways.

The government has stressed the Bill is intended to tackle increasing suicides linked to gaming addiction, money laundering, financial fraud, and terror financing, prioritizing public welfare and safe digital innovation.


Check out: “30 Years of Job Can’t Assure You a Home But Dream11 and Astrotalk….”: FinFluencer Highlights India’s Eroding Middle Class.

Industry Concerns and Future Outlook

The Online Gaming Bill signals a tectonic change for India’s $3.7 billion gaming market, where real-money formats contribute around 86% of revenue. Experts warn the ban could jeopardize investments worth ₹25,000 crore, threaten 2-3 lakh jobs, and diminish government GST revenues by about ₹20,000 crore annually.

Industry bodies like the All India Gaming Federation (AIGF) and Federation of Indian Fantasy Sports (FIFS) have urged the government to consider progressive regulation instead of an outright ban to protect millions of users and sustain sector growth.

As Dream11 exits RMG, attention turns to how it and other platforms will reinvent themselves in non-monetary gaming, esports, and international markets while complying with the new legal landscape.

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