Dream11's valuation expected to plummet following India's real-money gaming ban.

Dream Sports' valuation, last at $8 billion, may plummet due to the government's ban on real-money gaming operations. CEO Harsh Jain says investors will need to view it as a fresh investment, but India is a growth market, and investors will continue to invest if returns justify it. Dream11 has 260 million registered users, which Jain sees as a cushion as the company resets.

Dream Sports, the parent company of fantasy sports giant Dream11, is facing significant challenges following the government's ban on real-money gaming operations. The company's valuation, last at $8 billion, is expected to plummet due to the 95% revenue loss and 100% profit loss [1]. CEO Harsh Jain has stated that investors will need to view the situation as a fresh investment, given the regulatory changes and the company's shift in focus.

The government's Promotion and Regulation of Online Gaming Bill, 2025, has effectively ended the real-money gaming industry in India. Dream Sports, which had grown rapidly after the Punjab & Haryana High Court upheld fantasy gaming as a game of skill in 2017, now finds itself navigating a new landscape [1]. The company has stated that it will not challenge the government's ban and will instead focus on building businesses in sports AI, streaming, and creator-led fan engagement.

Jain has emphasized that the company's 260 million registered users will serve as a cushion as Dream Sports resets its business model. The company has also shifted to free-to-play fantasy contests with ad-sponsored prizes, drawing parallels with the English Premier League's Fantasy Premier League [1]. Other Dream Sports verticals, such as FanCode and DreamSetGo, remain unaffected and continue to operate.

Despite the challenges, Jain remains optimistic about the company's future. He believes that investors will continue to invest in India if the returns justify it. The company's current cash reserves provide a few years of runway, allowing it to explore new opportunities in the sports technology and fan engagement sectors [1].

The company's valuation will likely reset, but Jain is confident that investors will back the company given its strong user base, brand, and team. He underscores that the timing of the flip-back to India was not ideal, given the tax liabilities incurred in the US, but he remains committed to the company's long-term growth [1].

References:
[1] https://m.economictimes.com/tech/startups/dream-sports-ceo-harsh-jain-wont-challenge-real-money-gaming-ban-will-come-back-from-the-knockout-blow/articleshow/123505172.cms