Dream Sports, the parent company of fantasy sports giant Dream11, has decided not to contest India’s newly enacted ban on real-money online gaming. Co-founder Harsh Jain said the company will comply with the government’s decision rather than challenge it in court, even though the move has hit the core of its business.
“The government has made it clear that they don’t want this right now. We want to focus on the future and not fight with the government on something they don’t want,” Jain told Moneycontrol in an interview on August 25.
Impact on Dream11’s Business
Before the ban, Dream11 generated 95% of Dream Sports’ revenues and 100% of its profits through cash-based fantasy contests. The company reported an operational revenue of ₹6,384.49 crore in FY23, up from ₹3,841 crore in FY22.
Following the passage of the bill in Parliament and presidential assent, Dream11 suspended all paid contests on August 22 and shifted entirely to free-to-play social games. The ban applies to any online game involving user deposits with the expectation of winnings.
Wider Industry Fallout
The decision comes amid speculation that several real-money gaming (RMG) firms may challenge the constitutional validity of the law. Union IT Minister Ashwini Vaishnaw recently said he “surely” expects legal cases in the coming weeks.
The Supreme Court has also reserved judgment in a separate matter concerning the ₹2.5 lakh crore GST notices issued to gaming and casino companies, along with challenges to earlier state-level gaming bans in Tamil Nadu and Karnataka.
Jain on Regulation & Industry Responsibility
Jain acknowledged that while regulation could have been the ideal approach, the industry may have acted too late.
“We were all waiting for a regulator to come. But maybe we should have been stricter with self-regulation as an industry and not just wait for the government,” he said.
In March, the Federation of Indian Fantasy Sports (FIFS), co-founded by Dream11, along with the AIGF and EGF, announced a ‘Code of Ethics’ for responsible gaming. The framework included stricter KYC, user-set spending limits, self-exclusion tools, third-party audits, and transparent reporting. Jain admitted these reforms may have come “a little too late.”
Dream Sports Beyond Dream11
Founded in 2008 by Harsh Jain and Bhavit Sheth, Dream Sports has grown into a diversified sports-tech group, valued at $8 billion in 2021. Apart from Dream11, the company owns:
- FanCode (sports content & commerce)
- DreamSetGo (sports experiences)
- Dream Game Studios (mobile gaming)
- Dream Sports Foundation (philanthropy arm)
Despite its scale, Dream11’s real-money contests formed the financial backbone of the business. Jain stressed that Dream Sports remains committed to operating within the law:
“If the law changes in the future and allows our old model again, we’ll adapt. But today, this is the law, and we will abide by it.”