Indian gaming app MPL lays off 60% of local workforce after government ban on paid games

MPL to lay off 60% of local workforce after govt ban on paid gaming, affecting 300 of its 500 India staff. The company will focus on free-to-play games and bolster its business in the US market. MPL's India revenue last year was around $100 million.

Indian online gaming app Mobile Premier League (MPL) has announced plans to lay off approximately 60% of its local workforce, impacting around 300 of its 500 India staff. The company's decision comes in response to the government's recent ban on paid gaming, which has led to the shutdown of many gaming apps offering paid fantasy cricket, rummy, and poker games. MPL, backed by venture capital firms such as Peak XV Partners, has decided to focus on free-to-play games and bolster its business in the U.S. market.

The government's ban on paid gaming, citing financial and addiction risks, has significantly impacted the Indian gaming industry. MPL's India revenue last year was roughly $100 million, according to a company source [2]. The company has not yet commented on the job cuts, but an internal staff email seen by Reuters stated that the decision was made with a heavy heart and that the company is committed to supporting those impacted during the transition period.

MPL's rival, Dream11, valued at $8 billion, has also discontinued its fantasy cricket offering. Other apps offering paid poker and rummy card games have also stopped operating. The government's ban has led to a significant shift in the Indian gaming industry, which was previously expected to be worth $3.6 billion by 2029. The industry has argued that the games rely on skill and are not gambling, which is already highly restricted in India.

MPL's decision to lay off a significant portion of its local workforce highlights the challenges faced by the Indian gaming industry in the wake of the government's ban. The company's focus on free-to-play games and the U.S. market indicates a strategic shift aimed at mitigating the impact of the ban. As the industry adapts to the new regulatory environment, companies like MPL will need to find innovative ways to maintain their market presence and revenue streams.

References:
[1] https://www.business-standard.com/india-news/tiktok-return-india-bytedance-job-openings-gurugram-office-125083100202_1.html
[2] https://www.business-standard.com/companies/news/mpl-to-lay-off-60-of-local-workforce-after-govt-ban-on-paid-gaming-125083100533_1.html