Fantasy sports giant Dream11 has shifted away from its traditional money-based games model to free-to-play with support from advertisements and sponsorships. The shift comes after new legislation was enacted by Parliament last month that prohibited online games involving real money in India.
The shift has caused Dream11 to close down all its paid contests, which had been the backbone of its business for more than a decade. As per the firm, users can now participate in free daily contests, with prizes being sponsored by brand tie-ins. The firm stated that this assures consistency of user engagement while adjusting to the altered regulatory landscape.
User base
The platform boasts 250 million registered users, with approximately 10 million daily active players across India’s metros to tier 4 towns. Almost 70% of users are between the ages of 18 and 35, demonstrating high traction among youth audiences, and approximately 25% between 35 and 60, providing an older segment with buying power. This distribution has been referenced as a major reason for advertisers to follow the new format.
The firm has started onboarding advertisers to support the free-to-play model. Swiggy, Astrotalk and Tata Neu are among the brands that have already signed up, leveraging Dream11’s features and contests to reach out to sports enthusiasts. In contrast to traditional banner advertisements, the new strategy incorporates brand associations into the games themselves.
Broader industry repercussions
Outside of gaming, Dream11 is integrating its business more into its parent entity Dream Sports’ ecosystem. Its streaming platform FanCode is also being leveraged to deliver live cricket and other sports content on the Dream11 app. The shift should maintain user interest at a moment when the platform is trying to rebuild its value proposition with no real-money contests available.
Although the firm has started reorienting as a social, free-to-play sport platform, the longer-term path of India’s fantasy sports market will be determined by how regulations develop and whether other sites emulate Dream11’s strategy.