Harsh Jain, Dream Sports’ co-founder and CEO of Dream11, stated that there won’t be any layoffs even though the company has switched to free-to-play games after the government outlawed online gaming that requires payment.
Harsh Jain’s Assurance: No Layoffs at Dream Sports
According to him, Dream Sports has enough cash on hand to last for years and depends on a high internal demand for talent across all of its channels. In an August 25 interview with Moneycontrol, Jain stated that the company had no intention of making any layoffs.
This place is safe for all the talent. He went on to say that the business wants to use this talent to help us get out of this predicament. Developing new items that you can sell later is the only way to cope with 95% of your money being lost. Talent will always be the first step.
Commenting on the development, Kabir Kochhar Founder & Managing Partner, Audacity Venture Capital stated, “Regulation not prohibition, was the need of the hour. This decision impacts the economy in many ways, the first of which is on the unfortunate employees, founders, investors, and service providers. Nobody is questioning the spirit of this decision. You cannot outlaw something that has entrenched consumption behavior. We know for a fact that the underground illegal economy around betting is many times the size of the regulated and burgeoning legal RMG industry. Expect this unscrupulous underbelly to thrive.”
“VC confidence is yet again shaken. Regulatory risk is something most VCs account for in their decision-making matrix. Investor expectations were around higher taxation and clarity on the distinction between games of skill and games of chance. These are the two issues on which the highest courts of the land are yet to issue a judgment. The taxation itself implied a tacit understanding and a regulation-based approach. However, VCs will survive. It is the nature of the game. Founders unfortunately will be the hardest hit, as usual,” he added further.
Pivot to Free-to-Play Fantasy Sports in India
Dream11 is now concentrating only on free-to-play online social games after suspending all paid competitions on its fantasy sports platform on August 22. India’s new gaming law, which prohibits online money games where participants deposit money in the hopes of winning rewards, served as the impetus for the decision.
How India’s Online Gaming Ban Impacts Dream11
Notably, the investigation stated that these cash-based competitions, which are currently unlawful, accounted for 95% of the company’s current income and all of its earnings. According to Harsh Jain, Dream Sports is still experiencing a high internal demand for talent across all of its current businesses, which include the fintech venture Dream Money, the mobile game development unit Dream Game Studios, the sports experiences platform DreamSetGo, and the sports content and commerce platform FanCode.
Additionally, he stated that the company plans to develop new items in the future due to the increasing demand for them. Jain went on to say that the Mumbai-based business has enough cash on hand to support its employees and operations for a number of years, which he believes is more than enough. Compared to INR 3,841 crore in FY22, Dream Sports reported operating revenue of INR 6,384.49 crore for FY23.
Future of AI in Fantasy Sports and Fan Engagement
The company plans to concentrate all of its future efforts on artificial intelligence (AI)-based sports prospects in India, with a special focus on the creator economy.
According to Jain, the business offers sports performance, analytics, fan interaction, sports content, and products. Artificial intelligence is going to change all of this.
The company may now devote its 500 engineers to resolving these issues. “To address these issues for Indian sports fans, we will begin anew,” he continued.
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•Dream Sports CEO confirms no layoffs despite 95% •Dream11 suspends all paid fantasy •Cash-based games, which made up 95% •Jain emphasizes talent will help |
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