New Bets

With real-money gaming outlawed, companies scramble for new revenue streams and test fresh frontiers even as legal battles loom

- By SAMAR SRIVASTAVA

WEALTH MANAGEMENT, entering overseas markets and micro dramas are some new business avenues that India's online gaming companies plan to explore after the ban on real money gaming. While new business plans are still tentative, businesses are also working on a legal challenge to the Online Gaming Act, which bans gaming activity that involves the payment of fees with the expectation of winning.

India’s gaming businesses have upwards of 450 million users, according to various estimates, including a statement in Parliament made by Prime Minister Narendra Modi. This user data gives them access to demographic and financial information for their vast user base. The likes of Dream11, Winzo, Games24x7, Pokerbaazi and RummyCircle have used this data to engage and monetise their users.

Their key challenge now: To retain these users in the absence of money-based gaming. Their window to change their model is short. A delay could see their substantial user base disengage—and worse, migrate—leaving no new revenue streams for an industry that had revenues of $2 billion (₹17,000 crore) and valuations stretching to $8 billion for industry leader Dream11.

For now, Dream11 has switched to free-to-play games. On August 18, it launched the Dream Money app to allow users to buy gold online and invest in fixed deposits. While the Dream Money app was in the works for some time it could now turn into a key revenue stream for the company. The app has seen over 100,000 downloads on Play Store.

At the same time they are conserving cash. Dream11 has also terminated its sponsorship of the Indian cricket team even as it has said it will not lay off any employees in the foreseeable future.