Dream11 Pulls Out As Team India’s Lead Sponsor After New Gaming Law

Days ahead of the Asia Cup 2025, fantasy sports major Dream11 has reportedly decided to back out as the lead sponsor of the Indian cricket team.

The move comes after the ‘Promotion and Regulation of Online Gaming Bill, 2025’ was passed in the Indian Parliament, which bans real-money gaming platforms like Dream11.

“BCCI and Dream 11 are discontinuing their relationship after the Promotion and Regulation of Online Gaming Bill, 2025, was passed. BCCI will ensure not to indulge with any such organisations ahead in future,” BCCI Secretary Devajit Saikia told news agency ANI.

Following this development, Dream11 will not be sponsoring the upcoming Asia Cup in Dubai, forcing the BCCI to urgently float a fresh tender to secure a new team sponsor.

However, Dream11 will not face any penalties for the abrupt termination of its sponsorship. Its contract with the BCCI includes a clause that protects the company from penalties if its core business is affected by government legislation.

“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,” an official told The  Indian Express.

Since the new online gaming bill imposes a blanket ban on real-money fantasy contests, Dream11 is able to end its sponsorship deal without any financial repercussions.

Founded in 2008 by Harsh Jain and Bhavit Sheth, Dream11’s parent, Dream Sports, became India’s largest fantasy gaming platform, with a valuation of around $8 Bn. It recently reversed flipped to Indian from US.

In July 2023, it inked a three-year sponsorship deal with BCCI worth INR 358 Cr, taking over from Byju’s.

The startup also has significant involvement in IPL franchise deals and partnerships with prominent cricket players as brand ambassadors.

Dream11 also holds a substantial global footprint as an official partner for cricket leagues like the Caribbean Premier League, New Zealand’s Super Smash, and Australia’s Big Bash League, among others.

India’s Crackdown On Real Money Gaming

The Promotion and Regulation of Online Gaming Bill, 2025, passed by Parliament on August 21, seeks to protect citizens from the harms of online money games while creating a framework to encourage e-sports and safe social gaming.

Union IT Minister Ashwini Vaishnaw told the Rajya Sabha that nearly 45 Cr people have been affected by money-based gaming platforms, with cumulative losses estimated at more than INR 20,000 Cr.

Following the ban on real-money games and Dream11’s suspension of its cash contests and gaming operations, the company has quickly pivoted into the investment tech space with the recent launch of Dream Money.

Meanwhile, Dream Sports, its parent entity, remains active across various segments, from mobile gaming and streaming to sports tourism and events, through verticals such as FanCode, Dream Sports Foundation, DreamSetGo, Dream Cricket 25, Dream Capital and Sixer.

Why Government Had To Step In

The government said that the surge in money-driven online games has triggered a social and public health crisis. Families have reported cases of addiction, rising debts, and financial distress, with some extreme cases of suicides tied to losses on betting and fantasy platforms.

Worldwide, the concern has been acknowledged, with the World Health Organisation formally designating gaming disorder as a health condition characterised by compulsive play, disregard for daily tasks and continuation even when harmful.

As per the Indian government, the move was prompted by mounting public criticism, legal disputes and expert concerns over the unregulated growth of online betting platforms.

While banning online money games, the Bill outlines a regulatory framework that differentiates predatory platforms from positive digital recreation. It fosters e-sports, which demand strategy and coordination and promotes safe, socially and educationally enriching online games.

As per a report by WinZO Games and the Interactive Entertainment and Innovation Council (IEIC), India’s online gaming market was projected to more than double to $9.1 Bn by 2029.

But nearly 86% of today’s revenue comes from real-money formats. Industry estimates suggest this ban could lead to the demise of a nearly INR 23,000 Cr segment of the market, forcing major players to suspend operations and causing around 2 Lakh job losses.