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Cricket (Sport)

Fantasy Gaming Industry Faces Uncertain Future Amidst "Promotion and Regulation of Online Gaming Bill 2025"

Strategic Insights

— 1 min read

Mumbai's cricket stadium is where fantasy gaming and real sports come together, with fantasy apps like Dream11 drawing the most attention. The industry has grown exponentially in the last decade with the likes of CSK having Vision11 as one of their sponsors. Dream11, the industry leader, has also become a major player with its lead sponsorship deal with five IPL teams, while buying alternate slots with the remaining five franchises. However, all this is set to change with the "Promotion and Regulation of Online Gaming Bill 2025" being passed in Lok Sabha, which is likely to have a cascading effect on the revenue chain.

Key Takeaways:

  • The "Promotion and Regulation of Online Gaming Bill 2025" will outlaw "money gaming platforms", which will affect fantasy gaming as it will no longer be considered a game of skill.
  • 70 percent of fantasy gaming revenue is generated during IPL, and if fantasy gaming goes out of business, it will have a significant impact on the entire revenue chain.
  • Dream11 is set to be directly affected as it is the industry leader in fantasy gaming, with 90 percent share of the fantasy gaming market.
  • Dream11's lead sponsorship deal with five IPL teams and its partnership with BCCI worth Rs.358 crore will come into question if the regulation becomes law.
  • Many current and former cricketers have endorsement deals with fantasy gaming companies, including Suresh Raina, who was picked as a leading endorser by Vision11.
  • Industry bodies, including Federation of Indian Fantasy Sports (FIFS), have written to the Union government seeking its intervention in the issue.

Statistics:

  • 70 percent of fantasy gaming revenue is generated during IPL.
  • Dream11 has 90 percent share of the fantasy gaming market.
  • Dream11's partnership with five IPL teams and its sponsorship deal with BCCI is worth Rs.625 crore for five years.
  • The unspent money from the losing bid in the IPL sponsorship deal was Rs.515 crore.
  • The Board of Control for Cricket in India (BCCI) is likely to have its lead sponsorship deal with Dream11 challenged if the regulation becomes law.

Sources:

  • "Promotion and Regulation of Online Gaming Bill 2025" (Lok Sabha)
  • Hindustan Times, "Dream11 Flashers Prominently on Players' Jersey s Amidst Controversy Over New Regulation Bill" (August 21)
  • Federation of Indian Fantasy Sports (FIFS) letter to the Union government (date not mentioned)
  • Industry executive interview (quote not attributed)

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