India Bans Paid Gaming, Forcing MPL to Cut 60% of Staff

Mobile Premier League (MPL), one of India’s largest online gaming platforms, will lay off about 60% of its domestic workforce after the government banned paid games, a company source with knowledge of the matter said, as reported by Reuters.

The cuts will affect roughly 300 of MPL’s 500 employees in areas including marketing, finance, operations, engineering and legal.

Prime Minister Narendra Modi’s government last month outlawed online paid games, citing financial and addiction risks for young people. The move forced MPL and rivals such as Dream11 to halt fantasy cricket, rummy and poker offerings that had become highly popular in recent years.

“With a heavy heart we have decided that we will be downsizing our India Team significantly,” MPL Chief Executive Sai Srinivas wrote in an internal email seen by Reuters.

He added: “We are committed to providing those impacted with every possible support during this transition period ... India accounted for 50% of M-League’s revenues and this change would mean that we would no longer be making any revenue from India in the near future.”

The company’s India revenue last year was about $100 million, the source said. Backed by Peak XV Partners, formerly Sequoia Capital India, and Tiger Global, MPL was valued at $2.3 billion in 2021, according to PitchBook data. It also operates free-to-play games in Europe and paid games in the United States and Brazil.

India’s online gaming industry, once projected to reach $3.6 billion by 2029, has been shaken by the ban. Dream11, valued at $8 billion, has also discontinued its fantasy cricket offering, while several poker and rummy apps have shut down.

In a first, rival A23 has challenged the government’s ban in court, though MPL and Dream11 have opted not to pursue legal action.