Not Dream11, this Fantasy app set to lay off 60 per cent employees after Real Money Gaming Ban

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India's leading online gaming app, Mobile Premier League (MPL), is preparing to slash about 60% of its local workforce following the government's recent crackdown on paid online games.

This marks the gaming sector's first major fallout after the government, led by Prime Minister Narendra Modi, banned paid online games this month, citing concerns over financial risks and addiction among youth. The sweeping new law has forced a shutdown of several gaming apps that offered paid fantasy cricket, rummy, and poker games.

The ban has sent shockwaves through an industry that was on track to be worth $3.6 billion by 2029, supported by venture capital giants like Tiger Global and Peak XV Partners. MPL, along with rivals such as Dream11, gained popularity by hosting paid fantasy cricket contests where players could win monetary prizes. The gaming community argues these skill-based games should not be classified as gambling, which remains heavily restricted in India.

According to a source familiar with MPL's plans, the company will pivot towards free-to-play games and expand its footprint in the U.S. market. However, this shift comes at a steep cost. The source revealed that MPL intends to lay off approximately 300 of its 500 employees across departments including marketing, finance, operations, engineering, and legal.

In an internal email on Sunday seen by Reuters, MPL CEO Sai Srinivas addressed staff, saying, "with a heavy heart we have decided that we will be downsizing our India Team significantly." Though the exact number of cuts was not specified, he reassured, "We are committed to providing those impacted with every possible support during this transition period ... India accounted for 50% of M-League's revenues and this change would mean that we would no longer be making any revenue from India in the near future."

MPL, valued at $2.3 billion in 2021 and backed by Peak XV Partners (formerly Sequoia Capital India), previously generated around $100 million in revenue from India last year. Its rival Dream11, valued at $8 billion, has also discontinued its fantasy cricket offering. Similarly, many paid poker and rummy platforms have shut down operations. While Indian gaming startup A23 has legally challenged the ban, MPL and Dream11 have opted not to pursue court battles.