MPL Layoffs: Real-Money Online Gaming Ban Forces 60% Job Cuts in India; Around 300 Employees Affected

The online gaming industry in India is facing fresh turbulence, as Mobile Premier League (MPL), one of the country's leading gaming platforms, is preparing to lay off approximately 480 employees, accounting for nearly 60% of its Indian workforce. The drastic move comes in response to a recent government ban on online money games, which has significantly disrupted the company's core business operations.

MPL Layoffs: About 60% Employees in India To Receive Pink Slip

Approximately 300 out of 500 employees in India will be laid off, affecting departments such as marketing, finance, operations, engineering, and legal. This information was reported by Reuters based on a source familiar with the situation. The company is now shifting its focus to free-to-play games and expanding its business in the United States.

The decision was communicated to employees via an internal memo by Sai Srinivas, MPL's co-founder and CEO. This development marks one of the most significant workforce reductions in India's digital gaming sector to date, underscoring the far-reaching impact of the new regulatory landscape.

MPL Fallout from the Ban on Real-Money Games

The layoffs are a direct consequence of a legislative overhaul that received parliamentary approval on August 22, effectively banning all money-based online games. In response, MPL has suspended all such offerings on its platform. While free-to-play games remain live, the regulatory shift has deeply impacted the company's revenue model - a substantial portion of which relied on real-money gaming in India.

Notably, India once contributed nearly 50% of the M-League's revenue. With that stream now cut off, MPL is recalibrating its operations and financial outlook. Despite the massive setback, the company has decided not to challenge the government's decision in court, advising the All India Gaming Federation (AIGF) of which it is a member to adopt a similar stance and pivot focus to free-to-play formats.

History of Retrenchments and Regulatory Headwinds

This is not MPL's first round of layoffs triggered by policy changes. In August 2023, the company let go of 350 employees after the GST Council recommended a 28% tax on all real-money games, a rule that took effect in October 2023.

Impact of Online Gaming Ban

The Indian government banned paid online games earlier this month due to concerns about financial risks and addiction among young people. This move has led to the closure of many gaming apps offering fantasy cricket, rummy, and poker games. The industry was projected to reach a value of $3.6 billion by 2029 before the ban.

MPL is not alone in facing the consequences of the regulatory clampdown. Leading gaming firms like Dream Sports (Dream11), Gameskraft, Zupee, and Moonshine Technology (PokerBaazi) have also accepted the government's decision without legal contest.

MPL's rival Dream11 has also been affected by the new law but has chosen not to lay off any employees. CEO Harsh Jain stated that they are committed to retaining their talent and focusing on developing new products for future monetisation. Dream11 has already stopped all money-based fantasy games following the ban.

However, Head Digital Works, which operates A23 Rummy, has challenged the law in the Karnataka High Court, with the next hearing scheduled for September 8. The industry remains split on how to respond, with some opting for compliance and international diversification, while others seek judicial intervention.