India’s online gaming industry has been hit hard after the government banned real money games. Mobile Premier League (MPL), one of the country’s largest gaming platforms, will lay off around 60 percent of its local staff as part of a major downsising move, according to local media reports.
Government ban hits online gaming sector
Earlier this month, Indian Prime Minister Narendra Modi’s government announced a ban on paid online games. The move was aimed at addressing concerns over financial risks and gaming addiction, particularly among young people. The law immediately forced a shutdown of several platforms that offered paid fantasy cricket, rummy and poker.
India’s online gaming industry had been growing rapidly and was projected to reach a value of $3.6 billion by 2029. The new regulations shocked a sector that had strong backing from global venture capital firms such as Tiger Global and Peak XV Partners.
MPL’s Workforce Reduction
MPL, which gained wide popularity with fantasy cricket and skill-based games, is now shifting its focus to free-to-play formats. To adjust to the new reality, the company plans to cut about 300 of its 500 employees in India. The job cuts will affect staff across divisions including marketing, finance, operations, engineering and legal.
A company source said the downsizing reflects the sharp drop in revenue following the ban. India previously accounted for half of MPL’s total revenues, but the new rules mean the company will not be able to generate income from the market for the foreseeable future.
CEO’s email to employees
According to Reuters, MPL Chief Executive Officer Sai Srinivas confirmed the decision. He wrote that the company had decided to significantly reduce its India team and that the leadership was committed to supporting those impacted during the transition.
The email did not specify the exact number of layoffs, but it acknowledged the serious impact of the government’s move on the company’s India business. Srinivas wrote that MPL would continue to explore opportunities abroad, with a focus on expanding operations in the United States.
Wider impact on the industry
The ban has affected several other gaming companies in India, including rival Dream11, which also relied on paid fantasy sports games. Industry representatives have argued that fantasy games depend on skill rather than chance and should not be classified as gambling, which is already heavily restricted in the country.
The new law has raised questions about the future of the gaming sector in India, which has seen rapid growth in recent years with the rise of affordable smartphones and cheap internet access. With the loss of paid formats, many companies will need to rethink their strategies and look for international markets to sustain growth.
MPL’s next steps
MPL has already been working on building its presence outside India, particularly in the United States where the online gaming market continues to expand. By focusing on free-to-play models, the company aims to maintain its user base while exploring new revenue streams.
The decision to cut a large portion of its workforce marks one of the most significant responses to the government’s ban so far. With more companies expected to follow similar steps, India’s online gaming landscape is set for a major transformation.
