MPL to Cut 60% Staff After India Bans Paid Online Games

India’s ban on paid online games has forced one of the country’s largest gaming firms, Mobile Premier League (MPL), to announce major layoffs. The legislation, aimed at reducing financial risks and addiction among young players, has impacted fantasy gaming and card-based platforms, leaving MPL with no revenue from its core operations in India. The move signals a significant shift in the online gaming industry, which was projected to reach $3.6 billion by 2029.

MPL Announces Massive Job Cuts

According to Reuters, MPL will reduce its India workforce by nearly 60%, affecting around 300 employees. The cuts will span departments including marketing, operations, engineering, legal, and finance. In a note to staff, CEO and co-founder Sai Srinivas acknowledged the difficulty of the decision, stating that India contributed 50% of MPL’s revenue, which will now be effectively reduced to zero.

Srinivas assured employees that MPL would provide support during the transition, though specific assistance details were not disclosed. The layoffs reflect the company’s need to adapt quickly to a drastically altered regulatory environment.

India’s Ban on Paid Online Games

Earlier this month, the Indian government introduced a nationwide ban on online paid games. Officials cited concerns over financial losses and addictive behavior, particularly among young participants. The ban affects fantasy cricket, rummy, and poker platforms, many of which had experienced rapid growth in recent years.

The regulation has already forced several apps to shut down operations in India, and it is reshaping the online gaming landscape. Companies that relied heavily on paid games must now reconsider their business models.

Financial Impact on MPL

MPL had achieved unicorn status with a $2.3 billion valuation in 2021, backed by investors such as Peak XV Partners (formerly Sequoia Capital India). The company earned roughly $100 million from India last year, revenue that will now vanish due to the ban.

Although MPL continues to operate free-to-play titles in Europe and paid gaming operations in the US and Brazil, the Indian ban has forced a strategic shift in focus towards these international markets.

Wider Industry Impact

The ban is not just affecting MPL; the entire Indian online gaming sector is feeling the impact.

• Dream11, valued at $8 billion, has already suspended its fantasy cricket business.

• Several rummy and poker platforms have gone offline.

Industry groups argue that games such as fantasy cricket involve skill, distinguishing them from gambling, which is heavily restricted in India. Nevertheless, many leading platforms have opted not to legally challenge the government’s order.

Legal Challenges and Responses

While MPL and Dream11 are complying with the ban, some companies are fighting back. Gaming firm A23 has challenged the decision in court, becoming the first to take legal action. The outcome of this challenge could influence future regulations and the return of paid online games in India.

MPL’s Strategic Shift

With India no longer contributing revenue from paid games, MPL is expected to:

• Focus more on international markets, including the US, Brazil, and Europe

• Expand its free-to-play offerings

• Optimize operations to align with the new regulatory environment

This pivot demonstrates how Indian gaming unicorns may increasingly rely on global revenue streams in response to domestic restrictions.

Conclusion

The ban on paid online games in India has forced MPL to lay off 60% of its workforce and rethink its business strategy. While the domestic market has dried up, the company aims to maintain growth through international operations and free-to-play models. The decision highlights the broader challenges facing India’s online gaming sector, as companies navigate regulatory hurdles while trying to maintain revenue and investor confidence.