MPL to Cut 60% Jobs After Online Gaming Ban
The Mobile Premier League (MPL), an Indian online gaming app, is facing significant challenges following a recent government ban on paid online games. This ban, initiated by Prime Minister Narendra Modi’s administration, aims to address concerns about financial risks and addiction, particularly among the youth. As a direct consequence, MPL has announced plans to lay off approximately 60% of its workforce, translating to around 300 employees out of 500 in various departments.
This decision marks a drastic shift in the landscape of the Indian gaming industry, which was once projected to reach a value of $3.6 billion by 2029. MPL gained popularity in recent years by offering paid fantasy cricket games, enabling winners to earn financial rewards. However, the government’s stance categorizes these games as potential gambling activities, which are already tightly regulated in India.
In an internal email shared with employees, MPL's CEO Sai Srinivas expressed the company's heavy-hearted decision to downsize its Indian team significantly. Although he did not specify the exact number of layoffs in the email, the company is now focusing on free-to-play games and expanding its presence in the U.S. market. This shift indicates that MPL will no longer generate revenue from India in the foreseeable future.
Despite the layoffs, MPL remains committed to supporting affected employees during this transition period. The company has been a significant player in the Indian gaming market, contributing around 50% of its revenues from India, amounting to nearly $100 million last year.
Other competitors in the industry, such as Dream11, have also halted their fantasy cricket offerings in response to the ban. Many gaming apps offering paid poker and rummy games have ceased operations as well. Notably, Indian gaming company A23 has challenged the government's ban, but MPL and Dream11 have opted not to pursue legal action.
This situation underscores the broader implications of regulatory decisions in the gaming sector, raising questions about the future of online gaming in India. As the industry adapts to these new challenges, companies like MPL will need to innovate and pivot toward sustainable business models to survive in this changing landscape.
