It’s a Knockout Punch, Lost 95% Revenue & 100% Profits: Dream11 CEO on Real Money-Gaming Ban
In an exclusive interview with Moneycontrol, Harsh Jain, Co-Founder and CEO of Dream11, spoke candidly about the devastating impact of the government’s ban on real-money gaming in India. While acknowledging the severity of the situation, Jain remained optimistic about the future of his company, saying, “We’re going to work on the future. But yes, 95% of our group’s revenue…and basically 100% of…profit was coming from Dream 11’s current business model.” In this blog post, we’ll delve into Jain’s thoughts on the ban, the future of Dream11, and what this means for the real-money gaming industry in India.
The Ban: A “Knockout Punch”
On February 24, the Indian government announced a ban on 43 Chinese apps, including popular real-money gaming apps like Dream11, My11Circle, and others. The move was seen as a major blow to the real-money gaming industry, which had been growing rapidly in India. Jain described the ban as a “knockout punch” for Dream11, acknowledging the severe impact it has had on the company’s revenue and profits.
“We’re a highly dependent business, and our entire business model was around paid fantasy sports,” Jain said. “So, when the government banned paid fantasy sports, it was a massive disruption for us.” He added that the ban has led to a significant decline in revenue, with 95% of the company’s group revenue and 100% of its profits coming from the real-money gaming business.
However, Jain was quick to emphasize that the ban is not the end of the road for Dream11. Despite the significant setback, he remains a “delusional optimist” and is focused on building a stronger, more sustainable future for the company.
The Future of Dream11
So, what does the future hold for Dream11? Jain was tight-lipped about specific plans, but he did hint at exploring new opportunities and diversifying the company’s revenue streams.
“We’re going to work on the future,” he said. “We’re going to work on new products, new services, and new areas. We’re not going to limit ourselves to just fantasy sports.” Jain added that the company is also exploring opportunities in the e-sports and gaming spaces, as well as other areas that are less dependent on real-money gaming.
However, it’s unclear what specific strategies Dream11 will employ to revive its fortunes. Jain did mention that the company is working on a new product that is not dependent on real-money gaming, but details of this product remain scarce.
The Impact on the Real-Money Gaming Industry
The ban on real-money gaming apps has sent shockwaves through the industry, with many companies forced to reevaluate their business models and strategies. The impact has been particularly severe for companies that were heavily reliant on real-money gaming, like Dream11.
The ban has also raised questions about the future of the real-money gaming industry in India. While the government’s move was seen as a step towards regulating the industry and protecting consumers, it’s unclear whether this will ultimately lead to a more sustainable and responsible gaming ecosystem.
In the short term, the ban is likely to lead to a decline in the number of real-money gaming apps available in India. However, it’s possible that the industry will adapt and evolve, with companies finding new ways to engage with users and generate revenue.
Conclusion
The ban on real-money gaming apps has dealt a significant blow to Dream11, with the company losing 95% of its revenue and 100% of its profits. However, CEO Harsh Jain remains optimistic about the future, saying that the company will “work on the future” and explore new opportunities.
While the exact strategies that Dream11 will employ to revive its fortunes remain unclear, it’s clear that the company is committed to building a stronger, more sustainable future. The ban has also raised questions about the future of the real-money gaming industry in India, and whether this will ultimately lead to a more sustainable and responsible gaming ecosystem.
