The Indian government’s ban on online paid games has hit the gaming industry harder than expected. With the new rules implemented instantly, the action has been taken as a part to mitigate the risks of youth addiction, financial losses and gambling-like behaviour- where many have lost a fortune because of their gameplay. Popular apps offering Fantasy Cricket, Rummy, and Poker have been forced to shut down in the country, due to the same reason. The sector, which was projected to reach around USD 3.6 billion by 2029, is now facing an uncertain future.
MPL announces massive job cuts
Mobile Premier League (MPL), a Bengaluru-based gaming unicorn, has confirmed that it will lay off 60 per cent of its India workforce,e which will be around 300 employees. CEO and co-founder Sai Srinivas told the staff about the move to be taken via email. They stated that with India accounting for 50 per cent of MPL’s revenues, the ban means “zero revenue from India in the near future.”
The layoffs will affect multiple departments of the organisation, which will further include marketing, engineering, finance, operations and legal. Srinivas said the company will extend support to employees during the transition.
Industry giants also impacted
MPL is not facing the fallout alone as its competitor Dream11, which is valued at USD 8 billion, suspended its fantasy cricket operations last week, while poker and rummy platforms have gone offline. Some companies argue that fantasy sports are skill-based and should not be treated as a form of gambling.
Gaming platform A23 has taken legal action against the government’s decision, becoming the first company to challenge the ban.
MPL’s plans: What does the future hold?
Once valued at USD 2.3 billion, MPL had earned around USD 100 million in India in 2023. With domestic operations now at risk, the company is expected to shift focus to global markets. MPL continues to run free-to-play titles in Europe and operates paid gaming services in the US and Brazil.