MPL Layoffs: Gaming Ban Forces 60% Job Cuts in India
MPL is cutting 60% of its Indian staff after the ban on paid online games — the first big blow to India’s $3.6B gaming industry.
India’s online gaming industry has been dealt a severe blow. Mobile Premier League (MPL), one of the country’s most popular fantasy gaming platforms, is laying off around 60% of its local workforce after the government banned paid games. The move marks the first major restructuring in the sector following the new law.
Government Ban Triggers Crisis
Earlier this month, Prime Minister Narendra Modi’s government banned paid online games, citing financial risks and addiction concerns, especially among young players. The decision forced companies like MPL and Dream11 to shut down their paid fantasy cricket, poker, and rummy offerings.
Industry insiders say the ban has upended the business model of India’s $3.6 billion gaming sector, which was projected to grow rapidly by 2029. Startups, backed by major investors like Tiger Global and Peak XV Partners, are now struggling to find a way forward.
MPL Layoffs Hit Hundreds of Workers
According to a company source, MPL will cut nearly 300 of its 500 employees in India. The layoffs will affect staff across marketing, finance, engineering, operations, and legal divisions.
In an internal email to employees, CEO Sai Srinivas admitted the scale of the restructuring. “With a heavy heart we have decided that we will be downsizing our India team significantly,” he wrote. He also confirmed that MPL would no longer generate revenue from India in the near future.
India accounted for nearly half of MPL’s earnings, with revenues of around $100 million last year. The loss of paid games has left a gaping hole in the company’s financial outlook.
Impact on the Gaming Sector
The MPL layoffs are not an isolated case. Rival Dream11, valued at $8 billion, has also discontinued its fantasy cricket offerings. Several other apps that provided paid poker and rummy games have either shut down or suspended services.
Industry representatives argue that these games rely on skill, not chance, and therefore should not be classified as gambling. However, the government has remained firm in its stance, highlighting the risks of financial loss and addiction.
Searching for Alternatives
MPL is now shifting focus to free-to-play games in India while expanding its international operations. The company already offers free versions in Europe and runs paid games in the United States and Brazil.
Backed by Peak XV Partners (formerly Sequoia Capital India), MPL was valued at $2.3 billion in 2021, according to PitchBook. While its India operations face turbulence, global markets may provide some stability.
Meanwhile, Indian gaming company A23 has filed a legal challenge against the ban. MPL and Dream11, however, have chosen not to pursue litigation, preferring instead to adapt their business models.
What Lies Ahead
The MPL layoffs highlight the fragility of India’s fast-growing gaming industry. With sudden policy shifts, startups and investors are grappling with uncertainty. While the government emphasizes player protection, the ban risks stunting a sector that has generated jobs, innovation, and global investment interest.
As companies regroup, the future of online gaming in India remains uncertain. For now, the industry faces a reality check: survival will depend on adaptability, diversification, and navigating the complex regulatory landscape.
