Fantasy Nightmare: BCCI begins hunt for new sponsor after Dream11 walks out

Fantasy sports company Dream11 is no longer the title sponsor of the Indian cricket team and the Board has initiated the process to find a replacement, which is unlikely to be finalised in time for next month's Asia Cup.

As reported by the PTI on Sunday, Dream11 won't be continuing as Indian cricket team's title sponsors, starting from the men's Asia Cup, after the government banned real money gaming under the recently-passed 'Promotion and Regulation of Online Gaming' act.

BCCI secretary Devajit Saikia confirmed that the deal with Dream11 has ended and BCCI is putting the process in motion to get new title sponsor for various national teams.

"Our stand is very clear. With government regulations in place, the BCCI cannot continue its sponsorship relationship with Dream11 or any such other gaming company. Under the new restrictions, there is no scope and we are facing a roadblock with Dream11," Saikia told PTI on Monday.

"So we cannot continue with them and therefore trying to find some alternatives, and that process is now ongoing. The vacant position of the sponsor is something that we are trying to fill and till now nothing has been completed. Once something happens we will let you know with a media advisory," he added.

The ban on real money gaming has affected the revenue stream of all fantasy gaming companies.

"...no person shall offer any, aid, abet, induce, indulge, engage in offering online money gaming services nor shall involve in any advertisement which directly or indirectly promotes any person to play any online money game," the act states.

The legislation also makes it clear that there could be financial penalty upto Rs one crore or a jail term of three years in case of a violation.

Dream11 won the tender for Indian national teams (Senior Men, women, Emerging (U23), U-19 men and women) in 2023 for a period of three years for Rs 358 crore (USD 44 million). They are exiting with almost a year still left in the contract but are unlikely to be penalised for it.

"The BCCI fully understands one of our sponsorship partner's plight. It is not their fault and unlike other issues of payment default, there won't be any penalty levied on Dream11. This is a government rule and full compliance is required and in the current scenario, there business will be impacted," a top official told PTI on conditions of anonymity.

"Obviously BCCI's profits also get impacted on a short term basis and we now have to put new plans in place," he added.

He also informed that with only 15 days left for India's opening Asia Cup match in the UAE, it will be very difficult to find a new sponsor.

"There is a process in place. We have to put an advertisement inviting bids to become title sponsor of the national team. First you invite bids, then scan and scrutinise the bids and then announce the winner.

"It is a process that takes a certain amount of time and needs to be done keeping legal modalities in mind," the official said.

With Dream11's exit, another company My11Circle will also find it tough to remain the fantasy sports partner of the Indian Premier League. My11Circle has pledged Rs 625 crore for a period of five years (Rs 125 crore annually).

"Obviously, we are keeping a watch on proceedings. Any company dependent on real money gaming is going to take a huge hit. But for IPL, the BCCI has enough time even if any company pulls out. IPL start in mid-March next year and a process, if required, can be put in place," he said.