India’s online gaming industry has been one of the fastest-growing digital ecosystems in the world, with millions of players engaging in fantasy sports, rummy, poker, and other real-money games over the past decade. However, a recent nationwide decision to ban paid online games has sent shockwaves through the sector. Among the most severely affected is Mobile Premier League (MPL), one of India’s biggest gaming startups, which has now announced a massive layoff of 60% of its staff — nearly 300 employees.
This article explores what led to the ban, why MPL is downsizing so drastically, the broader implications for India’s gaming industry, and what lies ahead for companies and employees caught in the middle of this regulatory storm.
The Immediate Trigger: Ban on Paid Online Games
Earlier this month, the Indian government introduced a blanket ban on paid online gaming formats such as fantasy cricket, online poker, and rummy. The move was justified by citing risks of financial losses, gambling addiction, and exploitation of young players. Officials stated that many families had faced severe consequences due to unchecked spending on such apps, making regulation necessary.
While free-to-play casual games remain unaffected, any platform that charges entry fees or offers cash rewards has been outlawed. This ruling has instantly crippled businesses that rely on real-money gaming — a sector that was expected to reach $3.6 billion by 2029.
MPL’s Drastic Step: 60% Staff Fired
MPL’s co-founder and CEO, Sai Srinivas, informed employees through an internal email that the company had no choice but to downsize its India workforce.
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Nearly 300 employees, or 60% of the team in India, will be laid off.
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The job cuts will affect marketing, operations, engineering, finance, and legal departments.
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MPL has promised to extend some form of assistance to those impacted, though detailed severance packages have not been disclosed.
The email underlined the gravity of the situation: India contributed to nearly 50% of MPL’s revenue, and with the ban, that figure will now collapse to zero.
MPL’s Journey and What’s at Stake
Founded in 2018, MPL quickly became a household name in India, offering games ranging from fantasy cricket to casual puzzles. Backed by Peak XV Partners (formerly Sequoia Capital India), the startup reached a valuation of $2.3 billion in 2021.
In 2022–23, MPL’s India operations alone generated over $100 million in revenue. But this success was heavily dependent on paid gaming formats, particularly fantasy cricket and card-based games. With the new law, MPL’s main revenue engine has been abruptly shut down.
Globally, MPL also runs operations in Europe, the United States, and Brazil, where real-money gaming is still legal. Industry insiders believe the company will now shift its focus abroad to compensate for the loss in India.
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Broader Industry Impact
MPL is not alone. The government’s ban has rattled the entire Indian gaming sector:
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Dream11, India’s largest fantasy sports platform valued at $8 billion, has suspended its fantasy cricket business.
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Several online poker and rummy platforms have gone offline overnight.
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Industry bodies argue that fantasy sports involve skill rather than gambling, and therefore, the ban unfairly groups them with chance-based betting games.
The sudden policy has not only affected startups but also millions of users who regularly participated in fantasy leagues, especially during cricket tournaments.
Legal Challenges to the Ban
While most companies, including MPL and Dream11, have accepted the ban and begun restructuring, not all are retreating. Gaming platform A23 has filed a legal challenge against the government’s decision, becoming the first company to openly contest the order.
Legal experts suggest that the definition of “gambling” vs. “games of skill” will be at the heart of this battle. Previous state-level rulings had recognized fantasy sports as skill-based games, making the new nationwide blanket ban controversial.
Concerns for Employees
The job cuts have left hundreds of skilled professionals in limbo. Many employees had joined MPL during its rapid growth phase, when it was considered one of India’s most promising startups.
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Those in technology and product roles are worried about finding opportunities in the shrinking gaming sector.
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Marketing and operations staff face uncertainty, as demand for paid gaming apps has collapsed across the board.
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Even though MPL has assured support, the scale of layoffs is seen as one of the largest in India’s startup ecosystem in 2025.
This highlights the vulnerability of employees in industries heavily dependent on regulatory approval.
What This Means for India’s Startup Ecosystem
The ban and subsequent MPL layoffs raise larger questions about policy unpredictability in India’s digital economy. Startups that scale rapidly based on user growth and funding can face existential risks when regulations shift overnight.
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Investors who poured billions into the gaming sector are now reevaluating their bets.
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Industry associations warn that India could lose out on a multi-billion-dollar opportunity if skill-based games remain banned.
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Critics argue that instead of a blanket ban, the government should have explored stricter regulations, age restrictions, or spending caps.
MPL’s Possible Future Strategies
Despite the massive blow, MPL is unlikely to shut down completely. The company still has strong global operations and a robust brand. Some strategies that MPL may adopt include:
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Expanding Free-to-Play Games in India – focusing on casual titles that don’t involve cash prizes.
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Doubling Down on International Markets – scaling paid formats in the US, Brazil, and Europe, where regulations are more favorable.
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Diversifying Revenue Streams – exploring advertising-driven models or partnerships with brands.
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Waiting for Legal Outcomes – if companies like A23 succeed in court, MPL might re-enter India’s paid gaming space.
Conclusion: A Turning Point for India’s Gaming Industry
The ban on paid online games has triggered one of the biggest crises in India’s gaming industry. MPL’s decision to fire 60% of its staff shows just how devastating the impact has been. For employees, investors, and users, this moment underscores the risks of building businesses in rapidly evolving regulatory environments.
The coming months will determine whether India’s courts soften the ban, whether companies like MPL can reinvent themselves, and whether the industry can strike a balance between consumer protection and innovation.
One thing is clear: the story of MPL’s layoffs is not just about a company, but about the future of online gaming in India.
