Mobile Premier League (MPL), one of India’s leading online gaming platforms, has been dealt a severe blow following the government’s recent ban on paid online games. Through an internal email, MPL CEO Sai Srinivas informed employees that the company will be significantly downsizing as a result of its inability to produce revenue in India. In addition to marking an important turning point for MPL, this development highlights the broad consequences of regulatory changes for the nation’s rapidly growing digital gaming market.
Massive Layoffs as Revenue From India Wiped Out:
The ban on paid online games in India has effectively dismantled MPL’s business model in its home country. CEO Srinivas, in his message to employees, communicated the difficult decision to undertake a substantial reduction in workforce. While the exact number of layoffs was not initially disclosed in the internal note, Reuters reports indicate that the scale may be as high as 60%. This translates to approximately 300 of the company’s 500 staff members in India across marketing, finance, operations, engineering, and legal divisions losing their jobs. The layoffs represent a dramatic contraction for the Bengaluru-based company, which until recently was one of the stars of India’s start-up scene, supported by high-profile investors like Peak XV Partners.
Srinivas assured affected employees that MPL is committed to offering comprehensive support during the transition. “We are committed to providing those impacted with every possible support during this transition period,” his statement read. The CEO highlighted that India had accounted for nearly 50% of MPL’s revenues, which stood at around $100 million for the financial year 2024-25. With the new regulations in place, Srinivas underscored, “we would no longer be making any revenue from India in the near future.” The company’s downsizing and layoff announcements, therefore, were an inevitable response to the obliteration of a major source of income.
A Shift in Strategy:
With a ban in place, MPL is pivoting away from paid gaming in India. The new regulatory environment has compelled the company to focus on free-to-play games and accelerate its international expansion, particularly in the United States. The restructuring signals a transformational shift in business orientation for MPL, which was valued at $2.3 billion in 2021. The company is now re-evaluating its business model, evaluating the prospects of non-paid gaming and the viability of its overseas operations as it copes with the loss of what was once a primary market.
India’s recently enacted law bans all paid online games, citing concerns over addiction and financial risks among the youth. This drastic legislative move has left the entire gaming sector in disarray and impacted many platforms offering fantasy cricket, rummy, and poker. The online gaming industry projected to be worth $3.6 billion by 2029—has been shaken as several popular apps have halted operations or dramatically altered their offerings.
The Response of Industry Peers:
MPL is not the only company dealing with general industry tensions, but for the time being, the consequences on bigger rivals seem to be less severe. According to new laws, Dream11, the biggest rival of the MPL and a significant fantasy sports website, has also been forced to stop sponsoring the Indian Cricket Team and to stop offering any money-based fantasy games. Harsh Jain, the CEO of Dream11, disclosed that Dream11 will not implement layoffs, in contrast to MPL. Jain instead highlighted the company’s goal to “build new products that you can monetise in the future,” highlighting the significance of keeping talent in the face of a 95% revenue reduction predicted for the industry.
As it adjusts to the shifting regulatory environment, Dream Sports, the parent company of Dream11, is also apparently creating new businesses including Dream Money, a portal for personal finance and investments in gold, mutual funds, and fixed deposits. A major chapter in the history of digital gaming in India is marked by the MPL layoffs, which serve as a warning about the dangers high-growth industries face when faced with sudden legislative changes. Although MPL charts a path for international markets and free-to-play models, its experience also serves as an example of caution and a case study for other businesses navigating uncertain regulatory landscapes. As businesses innovate and adjust, the industry’s resiliency will be put to the test, even as the general market struggles with volatility and changing governmental regulations.
