Dream11, a prominent player in the world of fantasy gaming, has achieved a significant milestone by reaching 200 million registered users, despite the challenges posed by the Indian government’s decision to impose a 28% Goods and Services Tax (GST) on real money online gaming.
The announcement of this impressive feat was made by Dream11’s co-founder and CEO, Harsh Jain, who took to Twitter to share the news. In a tweet from the Dream Sports’ handle, they proudly declared, “We’ve hit another massive milestone! @Dream11 now proudly has 200 Mn registered users!”
This achievement comes at a time when the online gaming sector in India is grappling with tax notices from enforcement authorities regarding the non-payment of GST dues. Dream11, in particular, has been slapped with a substantial INR 28,000 crore GST notice by the Directorate General of Goods and Services Tax Intelligence (DGGI) in the Mumbai Zone.
In response to the tax notice, Dream11 moved to the Bombay High Court, challenging the show cause notice issued by the authorities for alleged GST evasion. The matter of taxation has created a significant challenge for the company and others in the online gaming industry.
In July, the Indian government levied a 28% GST on the gross revenue or total prize pool of online real money games. These amendments took effect from October 1, 2023. As a result, many gaming start-ups have faced challenging decisions, including employee layoffs and temporary halts in their operations.
It’s worth noting that Dream11’s parent company, Dream Sports, recently made the difficult decision to shut down its corporate venture capital (CVC) arm, Dream Capital, citing the impact of the 28% GST on their operations.
Despite these challenges, Dream11 continues to make strategic moves in the market. Notably, the company acquired the fantasy cricket platform Sixer for an undisclosed amount, expanding its portfolio. Additionally, Dream11 ventured into the world of mobile gaming by launching its first cricket mobile game in India, capitalizing on the growing popularity of the ICC Cricket World Cup 2023.
While dealing with taxation challenges, Dream11 remains focused on streamlining its operations while actively pursuing growth opportunities. The growth in registered users, reaching the 200 million mark, is a testament to the surging popularity of gaming in India.
A recent study, advised by two professors from the Indian Statistical Institute (ISI), Diganta Mukherjee and Subhamoy Maitra, delved into the perceptions, aspirations, and preferences of 4,644 engineering students and professionals from five Indian states, including Andhra Pradesh, Telangana, Kerala, Karnataka, and Tamil Nadu, regarding the online skill gaming sector. The study forecasts a substantial growth trajectory, with India’s gaming market expected to soar from $2.8 billion in 2022 to $5 billion by 2025, with a compounded annual growth rate of 28-30%, according to reports by PTI.
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