Cricket economy struck hard by real money gaming ban

Cricket Economy Struck Hard by Real Money Gaming Ban

Impact on Cricketers and IPL

The Indian cricket team's jersey sponsor, Dream11, has exited, and the ripple effect of the government's decision to ban real money gaming will be felt across the landscape. Cricketers will be among the most affected, as gaming companies were among the biggest spenders on advertising and endorsements.

Almost every Indian cricketer, including Virat Kohli, Rohit Sharma, Jasprit Bumrah, KL Rahul, Rishabh Pant, and the Pandya brothers, had tie-ups with real-money gaming firms. These sponsorship deals will now be off the table, resulting in a collective loss of INR 150-200 crore per year.

Top players like Kohli, Rohit Sharma, and MS Dhoni will lose around 5-10% of their overall endorsement income, while younger or lesser-known players will lose around 50-100% of their endorsement earnings.

Impact on the IPL and Industry Overall

The ban will also affect the IPL and its franchises, as My11 Circle is an associate sponsor of the IPL, contributing Rs 125 crore per year to the BCCI. The company had signed a five-year deal with the IPL, and the BCCI will have to look for another associate sponsor.

Several teams, including KKR, LSG, and SRH, have gaming companies as their sponsors, earning them around INR 10-20 crore per year. These deals will also be terminated.

Experts estimate that the advertising industry will lose close to INR 8,000-10,000 crore per year due to the ban. The impact will also be felt across smaller leagues like legends leagues and state-level tournaments, which will lose revenue majorly.

The government's decision is seen as a move to "save our society from the harmful effects of online money games." However, critics argue that the move could drive gamers towards illegal betting markets.