The Indian government has recently imposed a comprehensive ban on online paid games, citing that such games are prone to causing addiction among teenagers and economic losses. The ban has quickly devastated the industry, with the well-known gaming platform Mobile Premier League (MPL) announcing that it will lay off about 60% of its Indian staff, approximately 300 people, involving departments such as marketing, finance, operations, engineering, and legal.
In an internal letter, MPL stated that this move is "heavy but necessary" as India contributed half of its revenue, and the company will lose all domestic revenue in the short term following the implementation of the ban. MPL is planning to shift to free games and accelerate its expansion in the US and European markets.
India's online paid games had previously developed rapidly, covering fantasy cricket, poker, and rummy card games, with the market valuation once expected to reach $3.6 billion by 2029. However, with the ban in effect, including MPL's competitor Dream11, many leading companies have suspended related operations. Although some manufacturers have attempted to challenge the new regulations through legal means, MPL has chosen not to pursue legal action.
MPL was valued at $2.3 billion in 2021, supported by capital from Peak XV Partners. Last year, the company's revenue in India was about $100 million, and the current layoffs and strategic contraction highlight the profound impact of the ban on the industry.
