Blanket ban on real-money gaming platforms casts a shadow over sports sponsorships
Online gaming companies that have come under government scrutiny have, over the years, spent substantial amounts of money on advertising, including sponsoring sports events such as the Indian Premier League.
In 2023, India’s cricketing heroes began sporting a new team jersey. Among the many names adorning the newly designed kit was fantasy sports platform Dream 11, which splurged Rs 358 crore to get its name emblazoned across the chest of the players for three years.
Dream11 had then replaced edtech firm BYJU’S to become the national team’s lead sponsor.
But under the Promotion and Regulation of Online Gaming Bill, 2025, which has been approved by the Cabinet and tabled in Parliament, this may change, as the bill seeks a blanket ban on all online real-money games—the segment in which Dream 11 operates.
Under the new bill, advertising and promotion of real money games would result in jail time of up to 3 years and fines between Rs 50 lakh and Rs 1 crore, according to several media reports.
But Dream11 is not the only one writing generous cheques towards advertising and promotions. Its peers like MPL, WinZO, A23 Gaming, and My11Circle have spent huge amounts to entice more users onto their gaming platforms.
For instance, in fiscal 2024, MPL spent Rs 442.97 crore in advertising and promotions while My11Circle doled out Rs 625 crore to join the Indian Premier League 2024 sponsorship roster.
According to a Deccan Herald report citing Yasin Hamidani, Director of Media Care Brand Solutions, it is estimated that RMG companies and fantasy platforms collectively spend an estimated amount of over Rs 10,000 crore annually on marketing and advertising across digital, sports, and influencer channels.
While these companies sponsor the big-ticket tournaments, many real money gaming companies have also increasingly begun sponsoring small- and mid-tier sports tournaments, including esports tournaments. Many RMG platforms have set up a symbiotic partnership with esports tournaments to create engaging ecosystems for players. The deep pockets of these companies also provide attractive prize pools, which act as an incentive for participation in the tournament.
The new bill clearly recognises esports as a legitimate sport, akin to traditional sports like cricket—a move that is expected to serve as a boost to the segment. According to the bill, it is only companies that ”offer, aid, abet, induce, or otherwise indulge or engage in the offering of online money game and online gaming service,” that will be affected.
However, it is important to note that amidst the regulatory uncertainty in the sector leading up to the bill, real-money gaming companies have diversified their revenue streams. For instance, Dream11’s parent company, Dream Sports, also owns FanCode, which offers streaming services for sports and other sports-related content. Meanwhile, MPL and WinZO have expanded their operations to other countries, including Europe and Brazil, respectively.
Edited by Jyoti Narayan