MPL to Lay Off 60% of Workforce in India After Ban on Online Paid Games

Mobile Premier League (MPL) is set to reduce its workforce in India by about 60%, affecting approximately 300 employees across various departments such as marketing, finance, operations, engineering, and legal. This decision comes in response to India's recent ban on online paid games, which has significantly impacted the gaming industry.

Impact of Online Gaming Ban

Earlier this month, India prohibited online paid games due to concerns over financial risks and addiction, particularly among young people. This move has led to the closure of numerous gaming apps that offered paid fantasy cricket, rummy, and poker games. The industry had been projected to reach a value of $3.6 billion by 2029.

MPL's CEO Sai Srinivas expressed regret over the downsizing in an internal email sent on Sunday. "With a heavy heart we have decided that we will be downsizing our India Team significantly," he wrote. Although Srinivas did not specify the exact number of job cuts, he assured support for those affected during this transition.

Financial Implications for MPL

India previously contributed to half of MPL's revenue. However, with the new law in place, MPL anticipates no revenue from India in the foreseeable future. Last year, MPL's revenue from India was approximately $100 million. The company is now focusing on expanding its free-to-play offerings in Europe and its paid games in the United States and Brazil.

MPL's rival Dream11 has also ceased its fantasy cricket services following the ban. Despite being valued at $8 billion, Dream11 has opted not to challenge the government's decision legally. Similarly, other apps offering paid poker and rummy card games have halted operations.

Industry Response

The Indian gaming sector had gained traction with backing from venture capital firms like Tiger Global and Peak XV Partners. These companies supported platforms like MPL and Dream11 that offered skill-based games with financial rewards. However, gambling remains heavily restricted in India.

A23, another Indian gaming company, has taken a different approach by challenging the government's ban last week. Meanwhile, MPL and Dream11 have chosen not to pursue legal action against the new regulations.

As MPL navigates these changes, it remains committed to supporting its affected employees during this challenging period while shifting focus towards international markets for growth opportunities.