As per the media reports, Mobile Premier League (MPL), one of India’s leading online gaming platforms, has announced plans to lay off nearly 60% of its workforce in the country following the government’s sweeping ban on paid online games. The move will affect around 300 of its 500 employees, marking the first large-scale industry fallout since the new regulation came into force.
The Promotion and Regulation of Online Gaming Act, 2025, passed by Parliament in August, prohibits online games involving monetary stakes—including fantasy sports, poker, and rummy. Lawmakers cited concerns over gambling addiction and financial risks among India’s youth as key reasons for the crackdown.
In an internal email obtained by Reuters, MPL CEO Sai Srinivas expressed regret over the decision:
“With a heavy heart we have decided that we will be downsizing our India Team significantly.”
He further noted that India, which once contributed nearly 50% of MPL’s overall revenue, will no longer be a source of income in the foreseeable future. Employees impacted by the layoffs will receive support packages to ease the transition.
The Financial Impact on MPL and the Gaming Sector
MPL’s annual revenue from India was estimated at around USD 100 million, highlighting the scale of the impact. The Indian gaming sector, which had been projected to grow to USD 3.6 billion by 2029, now faces major uncertainty.
The ban has also shaken investor confidence. Venture capital giants like Tiger Global and Peak XV Partners (formerly Sequoia Capital India) have heavy stakes in the online gaming ecosystem. MPL was valued at USD 2.3 billion in 2021, while rival Dream11 had reached an USD 8 billion valuation.
Following the ban, Dream11 suspended its fantasy cricket operations, while A23, another online platform, has challenged the regulation in the Karnataka High Court, arguing that it unfairly criminalizes skill-based games. MPL and Dream11, however, have chosen not to pursue legal remedies.
MPL’s Future Strategy
To counter the revenue hit, MPL is redirecting its focus toward global markets. The company is strengthening its free-to-play offerings in Europe while also scaling up operations in the United States and Brazil. This pivot reflects the company’s efforts to sustain growth despite regulatory setbacks in India.
Industry Outlook
The ban represents a pivotal moment for India’s gaming industry. Once considered a booming sector with massive investor interest, the sudden restrictions have forced startups and unicorns alike to reconsider their business models. Analysts warn that the loss of India’s paid gaming market could drive talent and capital toward international markets instead.
Note: This story has been created with inputs from Reuters.
