The Board of Control for Cricket in India (BCCI) has announced that cryptocurrency platforms will not be allowed to participate in the tender for the national cricket team’s next lead sponsor. The BCCI has also prohibited companies from categories such as real-money gaming (excluding fantasy sports platforms), betting, and athleisure wear from bidding for the sponsorship rights.
BCCI Secretary Jay Shah stated in a press release, “The attention of the interested parties is brought to Annexure B which details certain brand categories in which the interested party cannot bid.”
The prohibited categories include athleisure and sportswear manufacturers, alcohol products, betting, cryptocurrency, real-money gaming (excluding fantasy sports gaming), tobacco, and platforms that may offend public morals such as pornography, among others.
The move to exclude these emerging categories is expected to impact the prospects of new-age tech startups operating in these domains. While advertisements related to alcohol, tobacco, and pornography are already mostly banned, the inclusion of cryptocurrency has raised concerns.
The decision is not surprising, as the Indian government has recently cracked down on betting platforms and discouraged investment in cryptocurrencies. Authorities have expressed concerns about cryptocurrencies posing a threat to India’s macroeconomic stability, with some calling for an outright ban on virtual digital assets (VDAs).
However, the ban is likely to face opposition from crypto startups that have already faced challenges from authorities and investors following the collapse of major players in the industry.
On the other hand, fantasy sports gaming platforms like Dream11, MPL, and Games24x7 have been exempted from the prohibition.
The media advisory released by the BCCI initiated the search for a new lead sponsor, coinciding with the expiration of BYJU’S contract for the team’s front jersey rights. BYJU’S, the edtech decacorn, had previously announced that it would not continue with the sponsorship rights, citing the achievement of its desired brand awareness.
BYJU’S, facing regulatory hurdles, losses, and adverse market conditions, is also planning to withdraw from branding partnerships with other international agencies such as the International Cricket Council (ICC) and the Federation Internationale de Football Association (FIFA).
The BCCI aims to expedite the bidding process and expects to conclude it before the India versus West Indies series begins. While Tata stepped in to sponsor the Indian Premier League (IPL) after Vivo’s exit, it remains to be seen who will secure the rights for the national cricket team’s jerseys.
