MPL to lay off 60% of Indian staff following government ban on paid gaming

The government’s ban has dealt a major setback to India’s fast-growing gaming sector, once projected to reach $3.6 billion by 2029, where venture-backed firms like MPL and Dream11 attracted millions through fantasy cricket offerings

Mobile Premier League (MPL), one of India’s leading online gaming platforms, is set to lay off around 60% of its local employees following the government’s recent ban on paid online games. The move marks the most significant industry fallout since the new regulation came into effect.

Earlier this month, the Indian government prohibited paid gaming apps, citing concerns over financial risks and addiction among the youth. The ban effectively shut down fantasy sports and card-based apps that allowed users to stake money on games such as cricket, rummy, and poker.

The decision delivered a severe blow to the rapidly growing gaming industry, which analysts projected could be worth $3.6 billion by 2029. Venture capital-backed companies such as MPL and Dream11 had fuelled the sector’s popularity with their fantasy cricket offerings, drawing millions of players nationwide.

Large-scale layoffs and business shift

According to a company insider, MPL will reduce its India workforce by nearly 300 out of 500 employees, impacting departments including marketing, finance, engineering, operations, and legal. An internal email from MPL’s co-founder and CEO, Sai Srinivas, acknowledged the “significant downsizing” and expressed regret over the decision, assuring that support measures would be extended to affected staff.

The email also revealed that India contributed nearly half of MPL’s revenues, but with the ban, the company expects to lose all domestic income in the foreseeable future. MPL is now pivoting toward free-to-play games while expanding its presence in international markets such as the United States, Brazil, and parts of Europe.

Backed by Peak XV Partners (formerly Sequoia Capital India), MPL had achieved a valuation of $2.3 billion in 2021. The company generated about $100 million in India revenue last year, according to sources familiar with its financials.

Wider industry impact

MPL is not alone in facing disruption. Rival Dream11, valued at $8 billion, has already suspended its fantasy cricket product. Several other platforms offering paid poker and rummy have also halted services.

While gaming firm A23 has mounted a legal challenge against the ban, MPL and Dream11 have opted not to pursue court action, signalling a cautious approach in navigating the uncertain regulatory landscape.