The Online Gaming Bill 2025 has now cleared both houses of Parliament, sending tremors through India’s online gaming sector. The hardest hit is Dream11, the country’s fantasy sports leader, which has announced that it will shut down all paid contests and transition into a free-to-play social gaming platform.
Dream11 Pulls Plug on Paid Games
Dream11 confirmed on Friday that it has ceased all real-money contests following the passage of the bill. The move impacts its 28 crore registered users, many of whom participated in cricket-driven fantasy leagues.
Sources earlier revealed that Dream11 had already decided to wind up its real-money gaming business as the bill makes paid online games like fantasy sports, poker, and rummy illegal. The law also prescribes stiff penalties, up to three years in jail or a ₹1 crore fine for violations.
From Market Leader to Forced Pivot
Founded in 2008 by Harsh Jain and Bhavit Sheth, Dream11 grew rapidly on the back of India’s cricket craze. By FY24, it had reported ₹9,600 crore in revenue, with 90% of earnings from real-money contests. In 2021, its valuation peaked at $8 billion, backed by investors such as Tiger Global, KrisCapital, Matalipuls, and TCV.
In an internal note, CEO Harsh Jain told employees that continuing real-money contests was “impossible under the new law.” Both permanent and contract staff were informed of the shift.
A New Direction: Social Gaming & Fintech
While the Dream11 app remains operational, the company is now repositioning itself as a social gaming platform. Dream Sports, its parent, has also rolled out Dream Money, marking its entry into the fintech space. The new app offers accessible investment options, signaling the company’s plan to diversify beyond gaming.
Dream11 emphasized that its paid gaming operations were always small compared to global standards, pointing out that India’s fantasy sports market is still less than 1% the size of the U.S. market.
By pivoting to free-to-play formats and digital finance, Dream Sports aims to safeguard its leadership position while adapting to India’s changing regulatory landscape.
