Online gaming unicorn Mobile Premier League (MPL) has started one of the largest workforce reductions in India’s gaming sector after the government banned paid online games earlier this month. The company will remove about 60 percent of its domestic staff, nearly 300 of its 500 employees, according to a Reuters report.
This marks MPL’s first major move since Prime Minister Narendra Modi’s government imposed the ban, a law that prohibits paid formats such as fantasy cricket, rummy, and poker. The decision has shaken one of the fastest-growing segments of India’s digital economy and forced leading platforms to reassess their strategies.
The Immediate Impact of the Ban
The government framed the ban as a measure to reduce financial risks and curb gaming addiction among the country’s youth. Authorities argued that paid formats blurred the line between gaming and gambling, often leading to debt traps and compulsive behavior.
The new law hit an industry that investors had once celebrated as India’s next billion-dollar digital story. Market analysts had forecast that India’s online real-money gaming market could expand to USD 3.6 billion by 2029. Now, several companies face revenue blackouts and survival threats.
MPL’s Reaction
MPL’s co-founder and chief executive officer Sai Srinivas sent an internal email to employees acknowledging the sweeping changes. He confirmed the layoffs and said the company would “significantly” reduce its India operations.
Srinivas told staff that the company would provide support to those impacted. He recognized the scale of the disruption by admitting that India once contributed half of parent firm M-League’s total revenue. But with the ban in place, the company would earn no revenue from India “in the near future.”
The scale of the layoffs reflects how sharply the law has altered MPL’s outlook. The company will downsize marketing, finance, operations, engineering, and legal teams. The move also highlights how dependent MPL remained on India despite its global expansion efforts.
MPL’s Financial Position
MPL had earned about USD 100 million in India revenue last year. The company also achieved adjusted EBITDA break-even of roughly USD 200,000, signaling early profitability at the operating level.
At its peak in 2021, investors valued MPL at USD 2.3 billion, making it one of the few Indian gaming unicorns. However, its heavy reliance on paid gaming formats exposed vulnerabilities once the regulatory landscape shifted.
Srinivas and his leadership team have now pivoted toward free-to-play games and international markets. The company has invested in expanding in the United States and Brazil, betting that these regions offer more regulatory stability and long-term growth opportunities.
Rivals Face Similar Challenges
MPL is not alone in facing the fallout. Rival Dream11, India’s largest fantasy sports platform valued at USD 8 billion, also suspended its fantasy cricket operations in the country. Dream11’s pause underscores the uniform impact of the ban across the ecosystem.
Smaller firms and startups that built their entire business model on paid formats now confront existential risks. Many lack MPL’s deep pockets or international footprint, making layoffs, shutdowns, or pivots almost inevitable.
The Larger Industry Picture
The ban has created a wave of uncertainty across the Indian gaming landscape. Industry bodies had previously lobbied for regulations that could differentiate games of skill from games of chance, arguing that formats like fantasy cricket rewarded strategy rather than luck.
Investors, including global names like Tiger Global and Peak XV Partners, had poured money into Indian gaming startups. These backers believed India’s cricket-loving population, smartphone penetration, and low data costs would produce explosive growth.
Now, that optimism has turned into caution. Several venture capital firms are reassessing their exposure to Indian online gaming companies. The new legal environment could also discourage fresh funding rounds, pushing firms to either consolidate or shift abroad.
The Human Cost
For employees at MPL, the layoffs represent a sudden and painful disruption. Many joined the company during its growth years, attracted by its unicorn status and ambitious vision. Now, departments across marketing, engineering, finance, operations, and legal will shrink dramatically.
Srinivas emphasized that the company would extend support to those affected, but the scale of layoffs shows the depth of the crisis. Hundreds of professionals now face the challenge of finding opportunities in an industry that has lost its biggest revenue stream overnight.
Shifting Focus Abroad
MPL’s leadership has already begun repositioning the company around global markets. Free-to-play titles in the United States and Brazil stand at the center of this new push. These regions offer larger consumer bases, more predictable regulations, and monetization models that rely on advertising and in-app purchases instead of entry fees.
The company will likely concentrate its reduced Indian workforce on supporting these international expansions while winding down domestic paid offerings. MPL’s pivot mirrors the survival strategies of other Indian digital startups that faced regulatory shocks in the past.
What Lies Ahead for India’s Gaming Ecosystem
The future of India’s gaming industry depends on whether the government introduces a clearer regulatory framework. If authorities continue to ban paid formats outright, many startups will either collapse or relocate their operations abroad.
Analysts suggest that only companies with diversified models—such as free-to-play games, casual titles, or international revenue streams—can endure in the current environment. Others may explore adjacent businesses like e-sports, content streaming, or gamified learning, which remain legal.
However, the loss of real-money gaming erodes the sector’s most lucrative business model. The projected USD 3.6 billion revenue target for 2029 now appears unrealistic unless policymakers revisit the ban.
Conclusion
MPL’s decision to slash 60 percent of its Indian workforce underlines how drastically the government’s ban has reshaped the online gaming industry. Once a rising unicorn with a USD 2.3 billion valuation, the company must now rebuild its future around overseas markets and free-to-play formats.
The ban has also unsettled rivals like Dream11 and put the entire Indian gaming ecosystem on notice. While MPL may survive through its global pivot, hundreds of employees and smaller startups face uncertainty.
The industry once symbolized India’s digital growth story, attracting investors from around the world. Today, it illustrates how sudden regulatory changes can dismantle billion-dollar dreams almost overnight.
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