india Bans Betting-Based Online Games, Dream11 Deal in Jeopardy
New Delhi - A sweeping ban on online games perceived as betting activities has been enacted in India, throwing the future of major sponsorships, including a recent agreement with the Board of Control for Cricket in india (BCCI), into uncertainty. The Ministry of Electronics and Facts Technology (MeitY) issued the order, citing concerns over financial risks and the potential for addiction.
The move directly impacts platforms like Dream11, a fantasy sports giant and current title sponsor of Indian cricket, and also other companies operating in the rapidly expanding Indian online gaming market. The ban stems from amendments to India’s online gaming rules, specifically targeting games involving wagering or the chance to win money. this decision follows increasing scrutiny of the sector and pressure from state governments concerned about the societal impact of online gambling. The future of Dream11’s INR 240 crore (approximately $29 million USD) deal with the BCCI, secured in August 2023, is now in question, alongside numerous other sponsorship agreements across various sports.
The regulations target online games where the outcome is persistent by chance rather than skill, a distinction that has been a point of contention within the industry. While skill-based games are not explicitly prohibited, the new rules place a greater onus on platforms to demonstrate that their offerings fall into this category. The ministry’s order specifically targets games that involve “wagering, betting, or gambling,” effectively curtailing the operation of many popular fantasy sports and online gaming applications.
The ban’s ramifications extend beyond sponsorships. According to The global Cricket Report by SportBusiness, india represents a notable portion of the global cricket market, and the online gaming sector has become a crucial revenue stream for the sport. FanCode’s parent company is reportedly pursuing a $50 million investment in Times Internet, signaling the continued interest in the Indian digital sports market, despite the evolving regulatory landscape.
Globally, sports organizations are increasingly focused on international expansion, as evidenced by the NHL’s recent partnership with Serie A to grow its presence internationally. the NHL has also been actively building its international rights team, recently recruiting David de Boer to a Zurich-based role. meanwhile, YouTube has secured global free-to-view rights to an NFL game, demonstrating the growing importance of digital platforms in sports broadcasting. However, the Indian ban underscores the challenges of navigating diverse and evolving regulatory environments in key growth markets.
