This surge in user registrations contributed to an impressive total of 21 Cr registered users on the platform
Majority of its 5.5 Cr new users fell within the 25-60 age range
Dream11 also witnessed a 79% year-on-year growth in female users
At a time when the entire Indian real money gaming space is battling regulatory hurdles due to the Centre’s decision to levy a 28% GST, fantasy gaming unicorn dream11
achieved the milestone of onboarding 5.5 Cr more users to its platform last year.
This new addition contributes to the total of 21 Cr registered users on the platform.
A major section of the newly added 5.5 Cr new users in the platform falls within 25-60 age group. To be sure, around 28% of the users hailed from the top 115 Indian tier I and II cities. Notably, it also witnessed a 79% year-on-year growth in female users, Dream11’s cofounder and CEO Harsh Jain shared these insights on his LinkedIn post.
Around, 1,000 Cr fantasy sports teams were created during 2023.
Last year, UPI also emerged as a game changer for the gaming industry, with 62% of surveyed gamers preferring it as a payment method over credit cards (7%). Dream11 recorded 150 Cr UPI transactions during the year.
Further, the platform achieved a milestone by reaching 200 Mn (20 Cr) registered users, in October last year.
In 2023, the gaming industry in India encountered a challenging period marked by heightened regulatory scrutiny and increased taxation on real money gaming (RMG). While the Ministry of Electronics and Information Technology (MeitY) offered some clarity through online gaming rules, but the sector was jolted when the GST council imposed a 28% GST on RMG.
Real-Money Gaming (RMG) is a subsection of gaming where users engage in games with the aim of winning actual money, often seeking to surpass their initial investment.
Consequently, funding in the gaming space declined significantly from $576 Mn in 2022 to $209 Mn in 2023 until November, Inc42 data showed.
The online gaming industry is currently navigating through a myriad of challenges.
In August last year, the GST Council amended the law to clarify that all online games involving bets, irrespective of skill or chance, will attract a GST rate of 28% on the full value of the bets placed, and not on the gross gaming revenue.
In addition to ongoing concerns related to the GST, online gaming companies have been served show-cause notices for alleged tax evasions to the tune of INR 1 lakh crore in 2023.
Several online gaming startups, including Dream11, Head Digital Works, Games 24×7, and listed gaming startup Nazara, have received show-cause notices from the Directorate General of GST Intelligence (DGGI) for tax evasion in the last few years.
The DGGI, Mumbai Zone reportedly issued an INR 28,000 Cr GST notice to online gaming startup Dream11.
As a result, many startups have laid off employees in droves and many have even temporarily halted their operations.
Dream11, too, seems to have grappled with challenges arising from the new taxation regime. In October, the parent company Dream Sports shut down its corporate venture capital (CVC) arm, Dream Capital, impacted by 28% GST.
The company also moved the Bombay High Court, challenging the show cause notice issued by the authorities for alleged GST evasion.
Dream11 also acquired the fantasy cricket platform Sixer for an undisclosed amount. In addition, it also launched its first cricket mobile game in India to cash in on the growing popularity of the ongoing ICC Cricket World Cup 2023.
