MPL to Lay Off 60% of India Staff After Real-Money Gaming Ban

99

News Summary

Mobile Premier League (MPL), once celebrated as a poster child of India’s booming gaming scene, is now facing a seismic shake-up: to Lay Off 60% of its Indian workforce, roughly 300 employees spanning marketing, finance, operations, engineering, and legal are being laid off. The culprit? The freshly minted Promotion and Regulation of Online Gaming Act, 2025, effectively slams the door on all real-money gaming, including popular skill-based games like fantasy cricket, poker, and rummy.

CEO Sai Srinivas didn’t mince words. India has been the backbone of MPL’s revenue, contributing nearly half of the total. With that cash flow suddenly frozen, the company must pivot fast or face serious trouble. In a candid internal memo, he acknowledged the emotional and financial toll on employees and assured support, though the scale of disruption is undeniable.

MPL, once valued at a dizzying $2.3 billion in 2021 with backing from Tiger Global and Peak XV Partners, is now turning its sights to free-to-play models and overseas markets like the U.S. and Brazil, where real-money games remain legal. The ban has sent tremors across India’s online gaming industry, projected to reach $3.6 billion by 2029, with rivals like Dream11, PokerBaazi, Zupee, and Probo freezing their paid operations.

This report unpacks MPL’s layoffs, its meteoric rise, the fallout for the industry, and critical takeaways for startups navigating India’s unpredictable regulatory landscape.

1. The Rise and Growth of MPL

1.1 Founding and Early Years

Founded in 2018 by Sai Srinivas and Shubh Malhotra, MPL surged to unicorn status, riding India’s insatiable appetite for skill-based gaming. Fantasy cricket, poker, and rummy weren’t merely pastimes—they were communities, competitions, and lifestyle statements rolled into one.

MPL’s platform was smooth, addictive, and almost hypnotic. Users spent hours engrossed, and sign-ups skyrocketed. By 2021, the company was valued at $2.3 billion, cementing its reputation as a trailblazer in India’s startup ecosystem and a pioneer in skill-based gaming.

1.2 Revenue Model

The lifeblood of MPL was its real-money gaming system. Players deposited cash to compete for prizes, with India alone generating around $100 million annually roughly half the company’s revenue. This financial magnetism drew heavyweight investors like Tiger Global and Peak XV Partners, signaling global confidence in India’s gaming boom.

1.3 Strategic Shifts

Even before the ban, MPL dabbled in free-to-play formats to court international users. The U.S. and Brazil presented fertile ground where paid gaming remains legal. But with the domestic ban in effect, MPL faces no choice but to rethink India as a core market.

2. Industry-Wide Impact

2.1 Government Regulation

The Promotion and Regulation of Online Gaming Act, 2025, aims to curb gambling risks, especially among younger audiences. Union Minister Anurag Thakur emphasized protecting families from the social and financial fallout of unregulated online gaming. Yet, the law makes no distinction between skill and chance it bans all real-money gaming, sending shockwaves through India’s once-booming digital ecosystem.

2.2 Market Reaction

The industry reacted immediately. MPL and Dream11 halted paid operations; A23 is challenging the ban in court, arguing skill-based platforms deserve exemption. Analysts warn this abrupt policy shift jeopardizes revenue, rattles investor confidence, and forces startups to rethink long-term strategies. One takeaway is clear: India’s gaming market is rich with opportunity, but regulatory risk is a constant shadow.

2.3 Economic Consequences

The immediate result: MPL’s domestic earnings nosedived, affecting both revenue and employment. Industry projections of $3.6 billion by 2029 now seem uncertain, pushing companies to lean into free-to-play games and overseas markets.

3. MPL’s Strategic Response

3.1 Workforce Downsizing

MPL confirmed layoffs affecting 60% of its India staff about 300 employees across multiple functions. CEO Sai Srinivas vowed structured support, reflecting a rare mix of empathy and pragmatism during a painful downsizing.

3.2 Focus on Free-to-Play and Global Markets

The company is doubling down on free-to-play titles while aggressively expanding internationally. This two-pronged approach seeks to maintain growth momentum while cushioning the blow from India’s regulatory disruption.

4. MPL in Context: Competitors and Market Position

4.1 Competitor Landscape

MPL faces rivals like Dream11, PokerBaazi, Zupee, and Probo. While Dream11 paused its paid fantasy offerings, A23 is contesting the ban in court. Others have hit pause or pivoted, reflecting a market now defined by caution.

4.2 Industry Trends

India’s online gaming sector, once projected to hit $3.6 billion by 2029, has been propelled by fantasy sports and skill-based games. Heavy VC backing from Tiger Global to Sequoia/Peak XV underscored investor optimism. But regulatory shocks force startups to innovate on the fly and accept that market trajectories are no longer predictable.

5. Lessons for Startups and Entrepreneurs

• Regulatory Awareness: Stay ahead of policy shifts. Ignorance can sink even the most promising ventures.
• Revenue Diversification: Don’t rely on a single income stream; multiple avenues mitigate shocks.
• Employee Communication: Transparency during layoffs preserves trust and morale.
• Global Expansion: Seek markets with favorable regulations to stabilize revenue.
• Resilience and Adaptability: Build contingency plans for sudden policies, financial setbacks, or market disruptions.

About Foundlanes

Foundlanes is a go-to platform for India’s startup ecosystem, delivering real-time updates on funding, market trends, and regulatory changes. It helps entrepreneurs stay informed, make strategic decisions, and navigate the fast-paced, ever-changing business landscape. MPL’s layoffs underscore the fragility of Indian startups in tightly regulated industries. Platforms like TheStartupsNews.com are vital for real-time updates on funding trends, legal developments, and market movements. For startups, staying plugged in isn’t optional, it’s survival.