Mobile Premier League (MPL), an online gaming company based in India, will cut about 60% of its local workforce after a new government ban on paid online games.

Roughly 300 of its 500 India-based staff will be affected, impacting divisions such as marketing, finance, operations, engineering, and legal.

India banned paid online games in August, citing concerns about addiction and financial harm.

The move has led to shutdowns of fantasy sports and card game apps.

MPL rival Dream11 has also stopped its paid fantasy cricket offering, while A23 has legally challenged the ban.

Backed by Peak XV Partners, MPL was valued at US$2.3 billion in 2021 and reported around US$100 million in India revenue last year.

The company will now focus on free-to-play games and growth in the US.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Gaming bans can instantly destroy billion-dollar valuations

MPL’s workforce reduction demonstrates how quickly regulatory changes can devastate even well-funded gaming companies.

The company was valued at $2.3 billion in 2021 but is now eliminating 300 of its 500 India-based employees—a 60% reduction—after losing its entire $100 million annual revenue stream from India1.

This represents a significant business model collapse, as India previously accounted for 50% of MPL’s total revenues1.

The speed of this downturn shows how gaming companies built around paid contests face existential risks when regulators reclassify their services, regardless of prior investor confidence or market position.

Major competitor Dream11, valued at $8 billion, has also faced challenges due to regulatory changes, indicating this impact extends across the industry’s most successful players1.

2️⃣ Broad gaming bans create massive market displacement