It’s a Knockout Punch, Lost 95% Revenue & 100% Profits: Dream11 CEO on Real Money-Gaming Ban
In a candid interview with Moneycontrol, Harsh Jain, Co-Founder and CEO of Dream11, described the government’s ban on real-money gaming as a “knockout punch” for his company. Despite the devastating impact, Jain remains steadfast in his optimism, stating that he’s still a “delusional optimist”. The ban has resulted in a significant loss of revenue and profits for Dream11, with Jain revealing that 95% of the company’s revenue and 100% of its profits were generated from its real-money gaming business.
The ban, which came into effect in December 2021, prohibits online gaming platforms from offering cash prizes or rewards to users. While the intention behind the ban is to protect minors and vulnerable sections of society from the potential risks associated with online gambling, its impact on the gaming industry has been significant.
Dream11, one of India’s most popular fantasy sports platforms, has been at the forefront of the gaming industry’s struggle to adapt to the new regulations. Jain acknowledged that the ban has been a major blow to the company’s business model, stating, “We’re going to work on…future. But yes, 95% of our group’s revenue…and basically 100% of…profit was coming from Dream 11’s current business model.”
While the figures are staggering, Jain’s statement that Dream11 is not “dead” suggests that the company is far from giving up. In fact, Jain has hinted at exploring alternative business models and revenue streams to mitigate the impact of the ban.
“So, I’m not saying we’re dead. We’re just…reborn,” Jain said, emphasizing the company’s commitment to innovation and resilience. “We’re going to find new ways to make money, new ways to engage with our users, and new ways to create value for our customers.”
Jain’s optimism is rooted in his understanding of the gaming industry’s potential for growth and evolution. Despite the ban, he believes that there is still a vast and untapped market for fantasy sports and gaming in India.
“In the next 5-10 years, I think we’ll see a much more organized, much more structured, and much more regulated gaming industry in India,” Jain predicted. “And I think we’ll see a lot of opportunities for companies like us to create value for users and create a sustainable business model.”
To achieve this vision, Jain is focused on exploring new business opportunities and partnerships that can help Dream11 adapt to the changing regulatory landscape. He has hinted at foraying into areas such as e-sports, content creation, and even virtual events, which can provide a new source of revenue and engagement for the company.
While the road ahead will undoubtedly be challenging, Jain’s unwavering optimism and commitment to innovation are likely to be crucial in guiding Dream11 through this period of transition.
In conclusion, the ban on real-money gaming has dealt a significant blow to Dream11’s business model, resulting in a loss of 95% revenue and 100% profits. However, Jain’s statement that Dream11 is not “dead” suggests that the company is far from giving up. With its commitment to innovation, resilience, and adaptability, Dream11 is poised to emerge stronger and more resilient than ever.
