Dream Sports, the parent company of fantasy gaming platform Dream11, reported a net loss of Rs.479 crore in FY25, marking a sharp reversal from its Rs.1,295 crore profit in FY24. The downturn comes despite the company spending nearly Rs.4,000 crore on advertising and marketing, reaffirming how central aggressive brand visibility remains to its growth strategy.

Advertising and marketing accounted for 58% of Dream Sports’ total expenses, with spends touching Rs.3,913 crore in FY25. This heavy outlay highlights the intensely competitive nature of the fantasy and online gaming ecosystem, where user acquisition and retention demand sustained, high-decibel marketing investments.

The loss, however, was not solely driven by marketing spends. Exceptional charges played a significant role, including a one-time tax expense of Rs.575 crore linked to the cross-border merger between Dream Sports Inc. and Sporta Technologies. Additionally, Rs.771 crore booked as directors’ benefits-largely attributed to ESOP-related costs-further weighed on profitability.

Operating revenue declined 15% year-on-year to Rs.6,759 crore, while total income stood at Rs.7,374 crore, supported by Rs.601 crore in non-operating income. Platform fees remained the primary revenue stream, though promotional credits and adjustments continued to impact net revenues. The company ultimately spent Rs.1.05 for every rupee earned, with EBITDA slipping to a loss of Rs.290 crore.

The financial strain arrived just ahead of a major regulatory shift, as India enforced a comprehensive ban on real-money gaming in August 2025. In response, Dream Sports has pivoted toward a broader sports entertainment model-expanding into watch-alongs, banter streams, free-to-play formats, and wealthtech via Dream Money.

From a brand standpoint, the move signals a strategic recalibration-from high-risk gaming dependence to diversified, regulation-resilient sports engagement.