India’s online gaming sector is facing fresh turbulence as Mobile Premier League (MPL) prepares to lay off nearly 60% of its domestic staff, according to reports. The development follows the Union government’s ban on real-money gaming under the Promotion and Regulation of Online Gaming Act, 2025, which took effect last month.
MPL and India’s Real-Money Gaming Ban
MPL, founded in 2018 by Sai Srinivas and Shubh Malhotra, quickly grew into one of India’s largest esports and real-money gaming platforms. Backed by investors including Peak XV Partners (formerly Sequoia Capital India) and previously valued at $2.3 billion, the company was best known for fantasy cricket and skill-based cash contests.
However, the gaming ecosystem in India has faced increasing scrutiny in recent years. Authorities cited concerns about addiction, financial losses, and social distress, particularly among younger players. In July 2025, the government enacted the Promotion and Regulation of Online Gaming Act, which prohibits all games involving financial stakes — regardless of whether they are based on skill or chance.
Industry estimates suggested the Indian real-money gaming market could have reached $3.6 billion by 2029, making the ban a turning point for both startups and global investors with exposure to the sector.
MPL Layoffs After Gaming Ban
According to a Reuters report, MPL will dismiss approximately 300 of its 500 India-based employees, spanning departments such as marketing, finance, operations, engineering, and legal.
In an internal email to staff, MPL co-founder and CEO Sai Srinivas acknowledged the drastic downsizing, writing that the company would be “significantly reducing our India team” while committing support for those impacted.
Fact Snapshot:
- Total Employees in India: ~500
- Layoffs Announced: ~300 (60%)
- Reason: Ban on real-money gaming under the Online Gaming Act 2025
- Revenue Impact: India accounted for
50% of MPL’s revenue ($100M in FY 2024-25)
Srinivas further noted that India contributed half of MPL’s total revenues, and with the ban, the company would “no longer be making any revenue from India in the near future.”
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Real-Money Gaming Ban Hits Startups
The layoffs at MPL underscore the wider disruption in India’s real-money gaming industry, which had attracted funding from investors such as Tiger Global, Accel, and Peak XV Partners.
Several other companies have also halted their operations:
- Dream11, PokerBaazi, Zupee, and Probo suspended real-money games.
- A23 has mounted a legal challenge against the ban.
Market analysts point out that the move has eroded investor confidence in gaming startups, many of which had scaled aggressively in anticipation of regulatory clarity. Instead, the outright prohibition has forced companies to pivot toward free-to-play models or shift focus overseas.
Analysts on MPL’s Layoffs and Market Shake-up
According to industry analysts, the layoffs highlight the structural risks of policy dependency in India’s gaming economy.
“Real-money gaming accounted for nearly 80% of revenues in India’s online gaming sector,” said a fintech and gaming consultant. “A sudden regulatory shift has left startups like MPL vulnerable, despite their size and global ambitions.”
Experts also suggest that global investors may recalibrate their exposure to Indian gaming, instead channeling funds into markets with clearer regulatory frameworks such as the United States and Brazil, where MPL is reportedly expanding operations.
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MPL’s Pivot Beyond India
Looking ahead, MPL is expected to focus on free-to-play titles and expand in international markets where real-money games remain legal. The company has already established a presence in the US and Brazil, where gaming regulations are more favorable.
At the industry level, stakeholders are watching whether legal challenges — such as those initiated by A23 — gain traction. The outcome could shape whether India’s online gaming sector remains attractive to global investors or continues to shrink under the weight of new restrictions.
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