Harsh Jain, co-founder and CEO of Dream Sports, the parent company of online gaming and fantasy sports major Dream11, has announced the company's strategic pivot following the Indian government's recent ban on online real money gaming (RMG). With the ‘Promotion and Regulation of Online Gaming Bill 2025’ officially passed, Dream11 will not oppose the government's decision and is instead embarking on a new "3.0 model" of operation. This shift comes as a significant blow, as 95 percent of the company's current revenue, and all its profits, were derived from cash-based contests that are now deemed illegal.

The "3.0 model" marks a distinct new phase for Dream11, evolving from its non-RMG journey between 2008-2012 (Phase 1) and its RMG-based operations from 2012-2015 (Dream11 2.0). Under this new paradigm, Dream11 will aggressively reorient its focus towards its other burgeoning businesses, including DreamCricket, DreamMoney, DreamSetGo, and FanCode. Jain aims to transform fantasy sports into a more engaging experience, centered around a sustainable free-to-play business model. Key strategies for this transformation include a reliance on advertising and sponsorships, as well as a significant expansion into global markets, positioning it as a "Make-in-India" product.

Dream11 has affirmed its immediate compliance with the new law, with Jain explicitly stating, "Dream11 will not challenge this law in court." He clarified the company's stance, noting that while they operated within constitutional protection previously, the new law necessitates their full compliance. However, Jain also emphasized that Dream11 would defend itself against any retroactive claims that its past, legally protected operations constituted illegal gambling.

Despite the drastic impact on revenue, Jain has confirmed that Dream11 has no plans for layoffs. The company's 500 engineers, who were previously engaged in maintaining existing systems, will now be strategically redirected. Their new focus will be on "building for the future," specifically through AI-driven innovations across sports content, commerce, merchandising, and fan experiences. Jain articulated the company's belief that "the only way out of this hole is by building great products, and that requires great talent." Consequently, Dream11 will prioritize retaining its workforce, opting instead to significantly cut marketing, advertising, and partnership expenditures. There remains a strong internal demand for talent across its various platforms like FanCode, DreamSetGo, Dream Game Studios, and Dream Money, and for new products in development.

Financially, Dream Sports appears robust, possessing sufficient cash reserves to sustain its workforce and operations for several years. The company reported operational revenue of ₹6,384.49 crore for FY23, a notable increase from ₹3,841 crore in FY22. Moving forward, the entire company's efforts will be channelled into harnessing sports-related opportunities within India, primarily leveraging artificial intelligence and focusing on the burgeoning creator economy. Jain sees AI as a disruptive force that will transform sports content, commerce, fan engagement, analytics, sports performance, and merchandise.

Adding to the company's operational adjustments, Dream11 has informed the Board of Control for Cricket in India (BCCI) of its inability to continue sponsoring teams. Currently in the final six months of its three-year contract, reportedly worth ₹358 crore when it replaced Byju's in 2023, Dream11 is in discussions with the BCCI to work out a mutually beneficial path forward. The BCCI, acknowledging the situation, is now actively exploring other sponsorship options ahead of the Asia Cup.

Reflecting on the government's decision, Jain expressed a preference for regulations over an outright ban, citing the example of Tamil Nadu's laws, which successfully implemented KYC, time limits, and player restrictions while maintaining tax revenues and preventing a black market. He admitted that the industry was "caught off guard" by the swift passage of the Bill. In hindsight, Jain acknowledged the industry's collective failure to establish strong self-regulation years ago, lamenting the lack of a united code of ethics that could have protected consumers and deterred problematic operators.