Dream11 Sidesteps BCCI Penalty After Contract Termination
The Board of Control for Cricket in India (BCCI) is unable to impose penalties on Dream11 following the fantasy gaming platform’s early exit from a Rs 358 crore sponsorship deal, thanks to a protective clause in the agreement, according to a report by the Indian Express cited by NDTV Sports. Dream11, which became the lead sponsor of the Indian cricket team in 2023, informed BCCI CEO Hemang Amin that it could no longer fulfill the three-year contract due to the introduction of the Online Gaming Bill, which became law and disrupted the company’s core operations.
The new legislation forced Dream11 to scale back its services, leading to the early termination of multiple sponsorship agreements, including its deal with the BCCI. However, a specific clause in the Rs 358 crore contract shields Dream11 from financial penalties, as it accounts for scenarios where new laws hinder the company’s primary business. A BCCI official confirmed to the Indian Express that Dream11 representatives visited the board’s office to formally announce their withdrawal, noting that the company would not continue as the team’s sponsor for the upcoming Asia Cup. The BCCI plans to issue a new tender to find a replacement sponsor.
Dream11’s influence in sports extends beyond the BCCI, with sponsorships of various Indian Premier League (IPL) franchises and athletes like Mahendra Singh Dhoni, Rohit Sharma, Hardik Pandya, Rishabh Pant, and Jasprit Bumrah. The company also holds partnerships with international competitions, such as the Caribbean Premier League and New Zealand’s Super Smash T20 tournament. In 2020, Dream11 stepped in as the IPL’s title sponsor after Vivo’s withdrawal amid India-China tensions.
The Online Gaming Bill highlighted concerns about unregulated online gaming, linking it to issues like financial fraud, money laundering, tax evasion, and threats to national security. As Dream11 navigates these challenges and explores new business models, its early contract exits have left the BCCI and other partners seeking new sponsorship avenues.