Last Updated on 2 months by Charbel Coorey
In news with huge ramifications on India’s gaming industry, Dream11 is set to shut its real-money gaming (RMG) business. Specifically, this involves players investing money to join paid contests to play fantasy sports, including cricket and football.
The decision comes off the back of the Indian Government passing the Online Gaming Bill 2025 on Thursday, August 21. This bill bans money-based online games flagging high risk of financial harm as these activities can be quite addictive. Also, anyone found to offer money games could face a fine of up to 1 crore (approx US$115,000) and a jail sentence of up to three years.
“It is the duty of the government and the parliament to take strict action against social evils, which keep erupting time and again,” federal IT minister Ashwini Vaishnaw said in parliament on Thursday, as quoted by Reuters.
Dream11 to end its real-money gaming business in wake of 2025 Online Gaming Bill
According to a report by Entrackr, sources confirmed Dream11 will wind down its RMG operations, which contributes more than 67% of the company’s annual earnings.
“The decision was communicated during an internal town hall on Wednesday,” said one source. “RMG contributes more than two-third of the company’s annual revenue.”
The fallout is expected to be quite significant as platforms like Dream11 employ thousands of people. Dream11 was valued as highly as $8 billion in late November 2021, and is a common sponsor in leagues around the world including the Indian Premier League (IPL), European Cricket League, and New Zealand’s Super Smash.
“The shutdown will also trigger severe cost-cutting measures, including mass layoffs, as the RMG business employed the majority of the firm’s workforce,” said a second source, as quoted by Entrackr.
On August 22, the final three cricket matches available to play on the fantasy platform are a top-end T20 match between Melbourne Renegades and Adelaide Strikers, another top-end T20 match between NT Strike and Perth Scorchers, and the second ODI between Australia and South Africa.
Where to now for Dream11?
Dream11 will focus on its non-real-money ventures such as Fancode, plus investments including Willow TV and Cricbuzz. Also, the platform is likely to look at opportunities in overseas markets.
“The firm is also likely to explore new game formats for overseas markets, similar to the strategy adopted by Mobile Premier League (MPL),” said the second source.
