Paid gaming ban hits hard: MPL to sack 60% staff after India bans paid games
&imwidth=600&imheight=450&format=webp&quality=medium "Paid gaming ban hits hard: MPL to sack 60% staff after India bans paid games")
The words "India online gaming regulations" are displayed in front of an Indian flag in this Illustration taken September 14, 2022. Photograph: (Reuters)
India’s gaming sector faces a major blow as MPL plans to cut 60% of its staff, around 300 jobs, after the government banned paid online games, citing financial and addiction risks.
Mobile Premier League (MPL), one of India’s biggest online gaming platforms, is set to cut about 60% of its local workforce after the government banned paid games. A company source told Reuters that nearly 300 of its 500 staff in India will lose their jobs, marking the first major fallout from the new law. Prime Minister Narendra Modi’s government banned paid online games earlier this month, saying they posed financial and addiction risks, especially for young people. The move forced apps offering paid fantasy cricket, rummy and poker to shut down.
How big is the impact on India’s gaming industry?
The ban shocked India’s fast-growing gaming sector, which was expected to reach $3.6 billion by 2029. Companies like MPL and its rival Dream11 had become hugely popular by offering paid fantasy cricket with cash prizes. Industry groups argue that such games are skill-based and not gambling, which is already heavily restricted in India.
MPL confirms major downsizing
In an internal email to staff seen by Reuters, MPL CEO Sai Srinivas said, “With a heavy heart we have decided that we will be downsizing our India Team significantly.” He promised support for those affected, but did not mention exact numbers. He added that India accounted for half of MPL’s revenue, but the ban now means “we would no longer be making any revenue from India in the near future.”
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What’s next for MPL?
MPL plans to shift focus to free-to-play games in India while strengthening its paid gaming business in the United States and Brazil. It also has free-to-play options in Europe. Backed by Peak XV Partners (formerly Sequoia Capital India), MPL was valued at $2.3 billion in 2021. Last year, its India revenue was about $100 million. Rival Dream11, valued at $8 billion, has also dropped its fantasy cricket offering. Some gaming firms like A23 have legally challenged the government’s ban, but MPL and Dream11 have chosen not to fight it in court.
