Mobile Premier League (MPL), a prominent Indian online gaming application, is implementing a significant downsizing, cutting approximately 60% of its local workforce. This decision, which will see roughly 300 of its 500 India staff across various departments including marketing, finance, operations, engineering, and legal being let go, marks the first major reaction to a recent government ban on paid online games. Prime Minister Narendra Modi's government prohibited paid online games this month, citing financial and addiction risks, particularly among youth, leading to the cessation of many gaming apps that offered paid fantasy cricket, rummy, and poker.

The ban has sent shockwaves through the Indian online gaming industry, which was projected to reach a value of $3.6 billion by 2029 and is backed by venture capital firms like Tiger Global and Peak XV Partners (formerly Sequoia Capital India). Companies such as MPL and its rival Dream11 had gained substantial popularity in recent years by providing paid fantasy cricket games that allowed participants to win financial prizes. The industry has historically argued that these games are based on skill, thereby differentiating them from gambling, which is already heavily regulated in India.

In response to the new regulations, MPL is shifting its strategic focus towards free-to-play games within India and bolstering its business operations in the U.S. market. In an internal email to staff, MPL CEO Sai Srinivas expressed the difficult decision to 'significantly' downsize the India team. He noted that India had accounted for 50% of MPL's revenues, and this change means the company anticipates no revenue from India in the near future. MPL, valued at $2.3 billion in 2021, had reported approximately $100 million in India revenue last year. The company also operates free-to-play offerings in Europe and paid games in the United States and Brazil.

Other major players in the industry are also feeling the impact. Dream11, valued at $8 billion, has similarly discontinued its fantasy cricket offering, and numerous other applications providing paid poker and rummy card games have ceased operations. While Indian gaming company A23 has challenged the government's ban in court, both MPL and Dream11 have decided against pursuing legal challenges. MPL has not issued an official comment to Reuters regarding the layoffs or its future plans.