Cricketers Face Significant Loss in Endorsement Income Due to Ban on Real Money Gaming
The recent decision by the Indian government to ban real money gaming has sent shockwaves through the cricketing world, particularly impacting cricketers who have been heavily reliant on endorsements from gaming companies. The exit of Dream11 as the jersey sponsor of the Indian team is just the beginning of the ripple effect that this ban will have on the industry.
Impact on Cricketers
Gaming companies have been major players in the advertising and endorsement space, with almost every Indian cricketer having ties to real-money gaming firms. Players like Virat Kohli, Rohit Sharma, and MS Dhoni have had lucrative contracts with these companies, with endorsement values ranging from INR 1 crore for younger players to INR 10-12 crore for top players like Kohli.
With the ban on advertising and promotion of money games, cricketers are expected to lose between INR 150-200 crore annually from terminated contracts. For some players, this loss could account for a significant portion of their overall endorsement income, with impacts ranging from 5-10 percent for top players to as much as 50-100 percent for others.
Impact on the Industry
The ban not only affects cricketers but also has a significant impact on the IPL and its franchises. My11 Circle, an associate sponsor of the IPL, contributed Rs 125 crore annually to the BCCI. With the ban, the IPL and franchises will lose out on these sponsorships, impacting their revenue streams.
Experts estimate that the advertising industry will lose close to INR 8,000-10,000 crore annually due to the ban on real money gaming. This represents a significant portion of overall advertising spends, with gaming companies contributing around 7-8 percent of the market. The disappearance of these funds will have a cascading effect on the industry, impacting not only cricket but also smaller leagues and state-level tournaments.
Government’s Decision and Response
The government’s decision to ban real money gaming was influenced by complaints from gamers losing significant amounts of money daily. Prime Minister Narendra Modi hailed the approval of the Promotion and Regulation of Online Gaming Bill, 2025, as a measure to protect society from the harmful effects of online money games.
While critics argue that the ban could drive gamers towards illegal betting markets, the government has remained firm in its decision. The bill not only bans such games but also prohibits their advertisements and promotions across traditional and social media. Banking pathways facilitating these transactions will also be blocked to enforce the measure.
In response to the ban, cricketers, gaming companies, and the advertising industry are bracing themselves for significant losses and looking for alternative revenue streams in the wake of this major development.
Future Challenges and Opportunities
As cricketers and gaming companies navigate the aftermath of the ban on real money gaming, they are faced with both challenges and opportunities. Cricketers will need to explore alternative endorsement deals to offset the loss of income from gaming companies. This could lead to a shift in the types of brands they associate with, potentially opening up new avenues for partnerships in different industries.
On the other hand, gaming companies will have to pivot their marketing strategies to comply with the new regulations. They may shift their focus towards fantasy sports platforms that do not involve real money transactions, tapping into the growing popularity of such games among sports enthusiasts. This shift could also create opportunities for collaboration with cricketers in promoting these platforms.
Impact on Fan Engagement
With the ban on real money gaming, there may also be a shift in how fans engage with the sport. Fantasy leagues and betting have become integral parts of the cricketing experience for many fans, adding an extra layer of excitement to matches. Without the presence of gaming companies, fans may have to find new ways to interact with the sport and stay engaged throughout the season.
Cricketers, too, will need to find innovative ways to connect with their fans in the absence of gaming endorsements. Social media and digital platforms may become even more crucial for players to maintain their fan base and stay relevant in a rapidly changing landscape.
Regulatory Impact on Sports Sponsorships
The ban on real money gaming could have broader implications for sports sponsorships in India. As the government tightens regulations around online gaming, other industries may also come under scrutiny, leading to potential restrictions on certain types of sponsorships. This could prompt sports teams and athletes to diversify their sponsorship portfolios to mitigate risks associated with regulatory changes.
Furthermore, the ban highlights the need for greater transparency and responsibility in sports sponsorships. Both brands and athletes will need to carefully consider the ethical implications of their partnerships to avoid backlash from fans and regulators.
Conclusion
The ban on real money gaming has far-reaching implications for cricketers, gaming companies, and the advertising industry as a whole. While the immediate impact may result in significant financial losses, this development also presents opportunities for innovation and adaptation in the sports and gaming sectors.
As stakeholders in the industry navigate these changes, they will need to stay agile and proactive in finding new ways to engage fans, secure sponsorships, and drive revenue. By embracing creativity and leveraging emerging trends, cricketers and gaming companies can weather the storm of regulatory challenges and emerge stronger in a rapidly evolving landscape.
