Dream11 expands to 11 countries amid India's real-money gaming ban
What's the story
Dream11, India's leading fantasy sports platform, has announced its global expansion into 11 countries. The list includes major markets such as the United States, United Kingdom, Australia, and the United Arab Emirates. This strategic move comes after India's new online gaming law disrupted Dream11's core business model of cash-based contests.
Business transition
Shift to advertising model after new online gaming law
In August, Harsh Jain, co-founder of Dream Sports (the parent company of Dream11), revealed that 95% of the company's revenues and all its profits came from cash-based contests. However, these are now banned under the new law in India. As a result, Dream11 has shifted to a free-to-play model supported by advertising and sponsorships.
Market penetration
Dream11's global expansion
Apart from the US, UK, Australia, and UAE, Dream11's global expansion also covers New Zealand, Canada, Malaysia, Nepal, Bangladesh, South Africa, and Sri Lanka. However, it won't be offering real-money games in these markets, according to Moneycontrol. The company recently onboarded brands like Swiggy and Tata Neu as advertisers for its platform which offers formats such as banner ads and sponsored contests.
Platform growth
About Dream11
Dream11 has a massive user base with 10 million daily active players and over 250 million total users. The majority of its users are aged between 18-35 years. The company recently launched a new fantasy sports feature called Flex, which lets users create their own leagues and customize rules according to their preferences.
Company assets
Dream Sports' valuation and other businesses
Founded in 2008 by Jain and Bhavit Sheth, Dream Sports was last valued at $8 billion after raising $840 million from a group of investors in November 2021. Apart from Dream11, the company also owns FanCode (a sports content and commerce platform), DreamSetGo (a sports experiences platform), Dream Game Studios (a mobile game development unit), Dream Money (an app for fixed deposits and gold investments) and the philanthropic arm of the company called Dream Sports Foundation.