Online gaming platform Mobile Premier League (MPL) plans to lay off about 60% of its Indian workforce after the government banned paid online games, a company source told Reuters on Sunday. This marks one of the first major corporate reactions to the new law.
🔹 Background
- The government recently banned paid online games, citing financial risks and addiction among youth.
- Games affected include fantasy cricket, rummy, and poker apps that offer financial prizes.
- The law has disrupted an industry backed by venture capital firms like Tiger Global and Peak XV Partners, which was projected to reach $3.6 billion by 2029.
🔹 Impact on MPL
- MPL’s paid fantasy games in India contributed roughly $100 million in revenue last year, accounting for 50% of the company’s total revenue.
- The company will now focus on free-to-play games and expand its business in the U.S. market.
- Divisions affected by layoffs include marketing, finance, operations, engineering, and legal.
- The downsizing is expected to impact about 300 of MPL’s 500 India staff.
🔹 CEO Statement
In an internal email, MPL CEO Sai Srinivas wrote:
“With a heavy heart we have decided that we will be downsizing our India Team significantly. We are committed to providing those impacted with every possible support during this transition period… this change would mean that we would no longer be making any revenue from India in the near future.”
🔹 Industry Reaction
- MPL’s competitor Dream11, valued at $8 billion, has also discontinued paid fantasy cricket offerings.
- Other paid rummy and poker platforms have stopped operations in India.
- Some companies, like A23, have challenged the government ban, but MPL and Dream11 have opted not to pursue legal action.
🔹 Company Profile
- MPL, backed by Peak XV Partners (formerly Sequoia Capital India), was valued at $2.3 billion in 2021.
- The company also operates free-to-play games in Europe and paid games in the U.S. and Brazil.
