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Cricket (Sport)

Indian Cricket's Endorsement Deals Hit by Gaming Ban: Estimated Losses of Rs 150-200 Crore

Strategic Insights

— 1 min read

The Indian government's sweeping ban on real-money gaming under the new Online Gaming Bill threatens to reshape the economics of Indian cricket and its advertising ecosystem. Star players like Virat Kohli, Rohit Sharma, and MS Dhoni, who were among the highest earners from fantasy gaming partnerships, are set to lose an estimated Rs 150-200 crore in endorsement deals. This shift in policy could alter the financial dynamics of the sport and leave a vacuum that could be difficult to fill.

Key Takeaways:

  • The estimated loss for Indian cricket's top players from the ban on real-money gaming is Rs 150-200 crore.
  • Star players like Virat Kohli, Rohit Sharma, and MS Dhoni were among the highest earners from fantasy gaming partnerships, with Kohli reportedly making Rs 10-12 crore annually from his MPL deal.
  • The impact of the ban will be felt most by younger players, who often relied on these companies for the bulk of their endorsement income, with some potentially losing a third of their deals.
  • Dream11's decision to withdraw as Team India's jersey sponsor, a deal worth Rs 358 crore, was the first major fallout of the ban.
  • The IPL faces a hit of nearly Rs 125 crore annually with My11Circle likely stepping back, and smaller leagues and global affiliates will struggle.
  • The advertising industry, specifically digital platforms and broadcasters, could see a dip in ad demand during the upcoming cricket season due to the loss of revenue from real-money gaming.
  • The ban on real-money gaming forces a reset in cricket's sponsorship playbook, with traditional categories like FMCG and telecom needing to step up to fill the gap.

Statistics:

  • Estimated losses for Indian cricket's top players: Rs 150-200 crore.
  • Estimated annual revenue from real-money gaming: Rs 8,000-10,000 crore.
  • India's overall ad market share attributed to real-money gaming: 7-8%.
  • Digital ad spends attributed to real-money gaming: 15-20%.
  • Dream11's jersey sponsorship deal: Rs 358 crore.
  • IPL's annual hit with My11Circle likely stepping back: nearly Rs 125 crore.

Sources:

  • Cricbuzz report
  • Elara Capital
  • Contify.com (distribution partner for IE Online Media Services Pvt. Ltd.)

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