Title: It’s a Knockout Punch, Lost 95% Revenue & 100% Profits: Dream11 CEO on Real Money-Gaming Ban
The Indian government’s ban on real-money gaming has sent shockwaves throughout the industry, with many companies struggling to cope with the sudden loss of revenue. One such company is Dream11, the popular fantasy sports platform, which has been forced to adapt to a new reality. In an exclusive interview with Moneycontrol, Dream11 Co-Founder and CEO Harsh Jain shared his thoughts on the ban, and how the company plans to move forward.
“I think it’s a knockout punch,” Jain said, referring to the government’s decision to ban real-money gaming. “We’re a business that was built on the back of real-money gaming, and suddenly that’s taken away from us.” However, despite the devastating impact on his company’s revenue, Jain remains optimistic about the future.
“We’re going to work on the future,” he said. “But yes, 95% of our group’s revenue, and basically 100% of our profit, was coming from Dream11’s current business model.” This doesn’t mean that Dream11 is “dead,” Jain added, but rather that the company needs to adapt to a new reality.
The ban on real-money gaming has been a significant blow to Dream11, which had been one of the leading players in the fantasy sports industry. The company had been growing rapidly, with revenues of over $100 million in 2020 alone. However, with the ban in place, the company has been forced to explore alternative business models.
“We’re looking at alternative monetization strategies,” Jain said. “We’re looking at advertising, we’re looking at sponsorships, we’re looking at other ways to generate revenue.” While these alternative models may not be as lucrative as the company’s previous business model, Jain remains confident that Dream11 can still be successful.
One of the key challenges facing Dream11 is the need to adapt to a new regulatory environment. The government’s ban on real-money gaming has created a sense of uncertainty and ambiguity, with many companies struggling to understand the new rules and regulations.
“It’s a bit of a Wild West out there right now,” Jain said. “Nobody really knows what the future holds, and that’s making it difficult for us to plan and make decisions.” However, Jain remains committed to finding a way forward, and is working closely with the government and other stakeholders to ensure that the company complies with the new regulations.
In addition to the regulatory challenges, Dream11 is also facing competition from other companies that are looking to fill the gap left by the ban on real-money gaming. However, Jain remains confident that his company can still be successful, even in a more competitive market.
“We’re not going to let the competition dictate our strategy,” he said. “We’re going to focus on building a sustainable business that creates value for our users and our partners.” This may involve exploring new markets and geographies, or developing new products and services that appeal to a wider audience.
In conclusion, the ban on real-money gaming has been a significant blow to Dream11, but the company remains committed to finding a way forward. While the regulatory environment may be uncertain, and the competition may be fierce, Jain remains confident that his company can still be successful.
“We’re not going to give up,” he said. “We’re going to keep pushing forward, and we’re going to find a way to make this work.”
