MPL to Layoff 60% Staff as India’s Ban on Paid Online Games Hits Revenue

The Mobile Premier League (MPL), one of the largest gaming businesses in India, has announced significant employment layoffs as a result of the country’s decision to ban paid online games.

MPL to Lay Off 60% Staff as India Bans Paid Online Games

Reuters reports that the Bengaluru-based startup will lay off roughly 300 employees, or 60% of its India workforce, because the new rule eliminates revenue from its primary fantasy and card gaming business. The government imposed a statewide ban on online paid games earlier this month, citing the potential for addiction and monetary losses, especially among young players.

The action has immediately altered the trajectory of the Indian online gaming market, which was predicted to reach $3.6 billion by 2029. Apps that offered poker, rummy, and fantasy cricket—formats that had become more and more popular in recent years—were forced to close.

CEO Sai Srinivas’ Email to Employees

MPL co-founder and CEO Sai Srinivas stated the company had no other option in an email sent to staff on August 31. The company has made the painful decision to drastically reduce the size of its India team. According to the email, 50% of M-League’s revenue came from India, and this shift would imply that the company would not be generating any income from that country going forward.

Several areas, including marketing, operations, engineering, legal, and finance, will experience job losses. Although he did not provide specifics in his note, Srinivas also stated that MPL will support staff members during the changeover.

Impact on Fantasy Cricket, Poker, and Rummy

According to Pitchbook data, MPL, which was supported by Peak XV Partners (formerly Sequoia Capital India), was valued at $2.3 billion in 2021. Due to the restriction, the company’s approximately $100 million in revenue from India from the previous year will no longer exist.

MPL’s Global Focus After India Exit

The app has paid gaming operations in the US and Brazil and still offers free-to-play games in Europe. It is anticipated that the company would concentrate on these regions. The industry as a whole is feeling the effects of the prohibition. The $8 billion rival Dream11 has already shut down its fantasy cricket division, and a number of poker and rummy sites have gone down.

Industry Reactions and Legal Challenges

Industry associations contend that skill-based activities like fantasy cricket are not comparable to gambling, which has traditionally been severely regulated in India. Not every player is backing off. As the first to file a lawsuit, gaming company A23 has contested the government’s ruling in court. However, MPL and Dream11 have chosen not to challenge the ruling.

PokerBaazi to Lay Off 50% Workforce After MPL Job Cuts in Indian Gaming Industry

After real money gaming (RMG) was outlawed in India, Moonshine Technology, which was supported by Nazara Technologies and ran PokerBaazi, began firing its staff. According to sources who spoke to several media sites, the business has begun to lay off workers, with up to 50% of its personnel potentially affected.

According to a different Storyboard18 article, 200 workers were let go by the company that created PokerBaazi. Moonshine Technology is now the second startup to use layoffs as a result of the RMG ban.

Additionally, the development follows Nazara’s decision to forgo acquiring a further share in Moonshine Technology. Nazara and Moonshine Technology had reached a final agreement for Nazara to purchase a 47.7% share in Moonshine Technology for INR 831.5 Cr through a secondary transaction.