According to a company source, MPL (Mobile Premier League) will cut about 60% of its local workforce. This is the first major reaction to the new law banning paid games. The Indian online gaming app is undergoing a significant downsizing.
Citing financial and addiction risks, especially among youth, Prime Minister Narendra Modi’s government banned online paid games this month. The move has forced many gaming apps offering paid fantasy cricket, rummy, and poker to shut down.
The law surprised an Indian industry backed by venture capital firms like Tiger Global and Peak XV Partners that was set to be worth $3.6 billion by 2029. Through offering paid fantasy cricket games that let winners to receive financial prizes, MPL, as well as rival Dream11 became well-known in the past years.
The industry argues that the games rely on skill and therefore are not gambling, which India had already heavily banned.
A company source said MPL would lay off around 300 of its 500 employees in India. The cuts will affect teams in marketing, finance, operations, engineering, and legal. The firm is shifting focus to free-to-play games while strengthening its business in the United States market.
MPL CEO Sai Srinivas wrote in a recent internal email, seen by Reuters, that with a heavy heart they have decided to significantly downsize operations in India. In the email, he did not specify the number of job cuts.
He added that they are committed to providing those impacted with every possible support during this transition period… India accounted for 50% of M-League’s revenues. With this change, the company will no longer generate revenue from India in the near future.
MPL declined to comment on the queries of Reuters.
