New Delhi: Mobile Premier League (MPL), one of India’s leading online gaming platforms, is set to lay off nearly 60% of its domestic workforce following the government’s recent ban on paid online gaming. Sources within the company indicate that this move will affect approximately 300 employees across multiple departments, including marketing, finance, operations, engineering, and legal. The decision comes as the platform recalibrates its business model in response to regulatory restrictions that prohibit real-money games such as fantasy cricket, poker, and rummy, citing concerns over financial risks and potential addiction among younger players.
In an internal communication, MPL’s CEO Sai Srinivas expressed deep regret over the layoffs, describing them as an “unavoidable step” in light of the policy changes. He assured employees that the company would extend support measures during the transition, including severance packages and career counseling, while emphasizing that the decision was driven purely by regulatory pressures and not by the company’s performance.
India had been a major market for MPL, generating approximately half of its revenue from the country. The platform had previously been valued at $2.3 billion in 2021, with annual Indian revenues nearing $100 million. With the ban in place, MPL is pivoting its focus to free-to-play models in Europe and paid gaming operations in markets such as the United States and Brazil. Analysts note that this shift could help the company stabilize revenue streams, but the immediate impact on its Indian workforce is substantial.
The move has sent ripples across India’s burgeoning online gaming industry, which was projected to reach a valuation of $3.6 billion by 2029. While some gaming companies, such as A23, have chosen to legally challenge the government’s decision, MPL and its rival Dream11 have refrained from pursuing litigation, instead opting to adapt their business strategies to comply with the new regulations.
Industry experts warn that the ban highlights the need for clearer differentiation between skill-based gaming and traditional gambling. Many stakeholders argue that without regulatory clarity, India risks stifling innovation in its rapidly growing digital entertainment sector. The MPL layoffs underscore the immediate human and economic costs of abrupt policy interventions, while also signaling a pivotal moment for the country’s online gaming ecosystem.
This development marks a significant turning point for India’s gaming landscape, emphasizing the delicate balance between regulatory oversight, investor confidence, and the future of a rapidly expanding industry.