Dream11 posts higher profit, revenue; auditor flags risk from GST demand

Fantasy sports platform Dream11 reported a 32% increase in net profit and a 66% jump in operating revenue for fiscal 2023, show its regulatory filings.

The company, which is facing a tax demand for more than Rs 28,000 crore from the GST authorities, posted a profit of Rs 188 crore on revenue of Rs 6,384 crore for the year ended March 31, 2023, according to the filings sourced from Tofler.

The company’s auditor, EY affiliate SR Batliboi & Co, noted in Dream11’s financial statements that the demand over past dues “may cast significant doubt on (the) group’s ability to continue as a going concern”.


In accounting terminology, a ‘going concern’ is an entity which has sufficient resources available to continue making money and avoid the risk of bankruptcy for the foreseeable future.

The Tiger Global-backed company has contested the tax demand.

In September, ET reported that the Directorate General of GST Intelligence had issued notices worth Rs 55,000 crore to Dream11, Games 24x7 and Head Digital Works.

After the implementation of the new GST regime for online real money games in October 2023, Dream11 had projected a significant worsening of its financial performance and cut its profit target for FY24 by 80%.

Under the new regime, online real money gaming platforms are subjected to a 28% levy on the full face value of bets placed, compared with 18% tax paid earlier on the platform fee, or the gross gaming revenue (GGR).

GGR, which is a percentage of bets placed on the platform, is the only source of operating revenue for Dream11, according to the company.

During FY23, Dream11’s expense on advertising and promotions came in at Rs 2,964 crore, up 37%. Most of the company’s spending on advertising was during sporting tournaments such as the Indian Premier League and other cricket competitions like the T20 World Cup in October-November 2022. Staff costs increased more than two times to Rs 1,154 crore.

Dream11 is the biggest fantasy sports platform in India by revenue.

Bengaluru-based bootstrapped online gaming firm Gameskraft has reported revenue from operations of Rs 2,662 crore in FY23, up nearly 25%. Gameskraft's net profit rose 14.2% to Rs 1,062 crore.

On December 6, Mobile Premier League (MPL) reported a narrower loss of $37.04 million for FY23, compared with $194.47 million the previous year. Revenue grew 63%, while expenses reduced.

In November, ET reported that Dream11’s parent company Dream Sports, was seeking to become a sporting conglomerate, as the fantasy sports platform — its core business — grappled with GST issues.

Cofounder and CEO Harsh Jain had said in an interview at the time that Dream Sports would look at making strategic bets on sports and allied sectors such as sports commerce, content, experiences, fitness and healthtech to widen its revenue streams.