Dream11’s Exit Shakes Indian Cricket Economy: Online Gaming Ban Leaves T20 Leagues Struggling

August 27, 2025 – India’s online gaming industry has been hit by its toughest challenge yet. With the passage of the Promotion and Regulation of Online Gaming Act, 2025, fantasy sports platforms like Dream11, MPL, My11Circle, PokerBaazi, Zupee, and WinZO have been forced to shut down all real-money games. The ban, which came into effect on August 22, 2025, has not only disrupted a booming industry but also shaken the financial ecosystem of Indian cricket, especially the smaller T20 leagues that heavily depended on fantasy gaming sponsorships and partnerships.

🚨 A Sudden Full Stop for Fantasy Gaming

Dream11, India’s biggest fantasy gaming app with more than 28 crore users, has completely suspended its money-based contests. Players can still withdraw wallet balances, but no new deposits are being accepted. The move comes after the government passed a strict law that prohibits all forms of online real-money gaming, citing concerns over gambling, addiction, and financial losses among youth.

The new law has not only impacted Dream11 but has also brought the entire gaming pipeline to a halt. Other major apps like MPL (Mobile Premier League) and My11Circle followed suit by halting their paid contests. Platforms are now trying to pivot towards free-to-play social models, but such options generate very little revenue compared to fantasy sports contests.

🏏 Impact on Cricket Sponsorship and BCCI

The impact of the gaming ban is not limited to apps and players. Cricket, India’s biggest sport, has also been hit hard. Dream11 was the official jersey sponsor of Team India, with a massive ₹358 crore deal. Now, with the ban in place, the company has initiated talks with the BCCI (Board of Control for Cricket in India) to exit this agreement.

This sudden exit has left the BCCI scrambling for a new sponsor ahead of major tournaments like the Asia Cup and the upcoming international series. The loss of such a high-profile sponsor highlights how deeply fantasy gaming had embedded itself into cricket’s commercial ecosystem.

While the Indian Premier League (IPL) is strong enough to attract new partners, smaller cricket events and leagues do not have the same bargaining power. The revenue they once relied on from fantasy gaming advertisements is now vanishing, leaving a worrying gap in their budgets.

⚡ Smaller T20 Leagues Brace for a Financial Storm

The ban is proving disastrous for regional and smaller T20 leagues, which depended on fantasy gaming apps to keep fans engaged during the long months when the IPL was not active.

Santosh N, a sports industry analyst at D & P Advisory, explained that:

• IPL covers only 60–75 days a year.
• BCCI matches add another 120 days.
• For the 200+ days in between, fantasy platforms kept cricket alive with user engagement and sponsorship money.

Without this steady pipeline, leagues such as TNPL (Tamil Nadu Premier League), KPL (Karnataka Premier League), and other state-level tournaments are left scrambling for funds. Many organizers fear that without fantasy gaming partnerships, their tournaments may face a drop in fan engagement and revenue.

💸 What Happens to Player Money and Wallets?

One of the biggest concerns after the announcement was what happens to the money stored in gaming wallets. Companies like Dream11 and MPL have issued statements assuring users that all withdrawals will remain open. Players can claim their balances, though deposits have been stopped permanently.

This step has provided some relief to millions of users, but questions remain about the future of the entire industry. Until now, India was one of the fastest-growing fantasy sports markets in the world, expected to cross $8 billion by 2030. The sudden policy shift has left investors, startups, and sports bodies in shock.

🎮 How Companies Are Pivoting

Dream11’s parent company, Dream Sports, has announced that it will not challenge the law in court. Instead, it plans to focus on other verticals such as:

• FanCode – A digital sports streaming platform.
• Dream Game Studios – Game development arm.
• DreamSetGo – Sports tourism and experiential services.

Similarly, other gaming firms are exploring international expansion in markets where real-money gaming is still legal. Some are also shifting to ad-based models or social gaming formats, but industry experts believe these changes may not fully compensate for the massive revenue losses.

⚖️ The Law Behind the Ban

The Promotion and Regulation of Online Gaming Act, 2025 was passed swiftly in Parliament.

• August 21, 2025: Introduced and cleared in Lok Sabha.
• Same day: Passed in Rajya Sabha.
• August 22, 2025: Received Presidential assent and came into effect.

The Act creates a National Online Gaming Commission to regulate the industry and promote non-monetary forms of e-sports. However, it imposes strict penalties on companies offering real-money formats, including heavy fines and even imprisonment.

The government has justified the law by pointing to rising complaints about gambling addiction, misuse of family income, and cases of debt linked to online gaming.

📉 Shockwaves Across the Economy

The ban has wider implications beyond cricket. The startup ecosystem is also feeling the heat. Venture capital firms had invested heavily in India’s fantasy gaming startups, which were seen as high-growth, profitable ventures. Now, those investments look uncertain.

For broadcasters and advertisers, the end of fantasy sports partnerships means fewer sponsorship deals and lower ad revenues during tournaments. Even social media platforms, which earned heavily from gaming ads, may see a dip in ad spending.

📰 Public Reaction

The news has sparked a storm of reactions.

• Some parents and social activists welcomed the decision, saying it will protect young people from financial risks and gambling addiction.
• Players and fans, however, expressed disappointment, arguing that fantasy gaming was a way to make cricket more interactive and exciting.
• Industry bodies have warned that the law could stifle innovation and force companies to leave India, taking jobs and investment with them.

Twitter (X) has been flooded with hashtags like #SaveFantasySports and #Dream11Ban, reflecting the polarised views of the public.

🌍 What Lies Ahead

The road ahead looks uncertain. While the law is final, there may still be legal challenges in the courts. Some companies are hoping for amendments or state-level relaxations in the future. Others are preparing to shift operations abroad while maintaining only non-monetary services in India.

For cricket, however, the damage is immediate. With the online gaming pipeline gone, smaller T20 leagues must find new revenue models. Unless they do, the vibrant cricket calendar outside IPL may shrink, affecting both players and fans.