It’s a Knockout Punch, Lost 95% Revenue & 100% Profits: Dream11 CEO on Real Money-Gaming Ban
The Indian government’s sudden ban on real-money gaming, effective April 27, 2021, sent shockwaves through the startup ecosystem, particularly in the sports fantasy gaming industry. Among the most affected was Dream11, a leading player in this space, with a significant chunk of its revenue and profits coming from its real-money gaming business. In an exclusive interview with Moneycontrol, Dream11 Co-Founder and CEO Harsh Jain shared his thoughts on the ban, calling it a “knockout punch” that has severely impacted the company’s financials. However, Jain, known for his optimism, emphasized that Dream11 is not ready to throw in the towel just yet.
A “Knockout Punch”
The ban on real-money gaming, which was initiated by the Ministry of Information and Broadcasting, has dealt a significant blow to Dream11’s business. Jain acknowledged that the company has taken a massive hit, with a staggering 95% of its revenue and 100% of its profits coming from its real-money gaming business. “We’re going to work on the future,” Jain said, “but yes, 95% of our group’s revenue…and basically 100% of…profit was coming from Dream 11’s current business model.” The impact is palpable, with Jain describing the ban as a “knockout punch” that has left the company reeling.
A Delusional Optimist
Despite the devastating blow, Jain remains committed to the future of Dream11. “I’m still a delusional optimist,” he laughed, indicating his unwavering faith in the company’s ability to adapt and evolve. Jain believes that the company’s resilience and ability to innovate will help it navigate this challenging period.
The Road Ahead
So, what’s next for Dream11? Jain emphasized that the company will focus on exploring alternative revenue streams and business models. “We’re going to work on…future,” he said, hinting at a potential pivot towards new areas of growth. Jain also acknowledged that the company will need to re-evaluate its strategy and adjust to the new landscape.
The Gaming Industry’s Future
The ban on real-money gaming has sent shockwaves through the gaming industry, with many companies scrambling to adapt to the new reality. Jain believes that the Indian government’s decision will ultimately benefit the industry, as it will lead to a more regulated and sustainable market. “This ban is a good thing for the industry in the long run,” he said, “because it will create a level playing field and ensure that only responsible and sustainable businesses survive.”
Conclusion
The ban on real-money gaming has dealt a significant blow to Dream11’s business, with 95% of its revenue and 100% of its profits coming from its real-money gaming business. However, CEO Harsh Jain remains optimistic about the company’s future, emphasizing its ability to adapt and innovate. As the company looks to explore new revenue streams and business models, it will be interesting to see how it navigates this challenging period. One thing is certain, though – Dream11 is far from dead, and Jain’s “delusional optimism” will undoubtedly play a key role in shaping its future.
