MUMBAI/NEW DELHI (Reuters) -Indian fantasy sports platform Dream11 has initiated talks with the country’s cricket board to exit its 3.58 billion rupee ($41 million) jersey sponsorship deal, the Economic Times reported on Sunday, citing people familiar with the matter.
The move followed the central government ban on real-money online games, including fantasy sports, under the newly enacted Promotion and Regulation of Online Gaming Bill which threatens the survival of the popular gaming sector.
The law prohibits advertising, promotion and sponsorship of such platforms, making Dream11’s continued association with the Indian cricket team legally untenable, the report said.
Dream11 signed a three-year agreement with the Board of Control for Cricket in India (BCCI) in 2023 to feature its logo on the national team’s jerseys.
“These are watertight agreements and cannot be exited unilaterally. It will have to be a mutual decision since the law of the land doesn’t permit advertising of banned games,” one source said.
Dream11 commands a valuation of $8 billion. The new bill states that anyone who offers money games after the law comes into force could face a jail term of up to three years and a fine.
BCCI secretary Devajit Saikia did not immediately respond to a Reuters call and messages seeking confirmation of whether Dream11 has approached the board about ending their jersey sponsorship deal.
Saikia told The Times of India newspaper on Thursday that the BCCI will not do anything that is not permitted by the government or by any law of the country.
“The BCCI will not violate any of the laws enforced in the country. That’s very clear,” he was quoted as saying.
The development comes ahead of the Asia Cup, which begins on September 9, leaving the BCCI with limited time to secure a new sponsor.
($1 = 87.3260 Indian rupees)
(Reporting by Swati Bhat and Amlan Chakraborty, editing by Ed Osmond)
