The gaming industry is bracing for a major shake-up following the ban on real money games, implemented after the Online Gaming Bill was passed. The impact of this ban is expected to be visible soon, with the gaming app Mobile Premier League (MPL) reportedly planning large-scale layoffs. A source with knowledge of the company’s plans has stated that MPL could lay off 60% of its employees due to the new regulations affecting the online gaming sector.
According to the Economic Times, MPL is now focusing on expanding its business in the US market by concentrating on free-to-play games. A source within the company mentioned that approximately 300 out of the 500 Indian employees in departments such as marketing, operations, finance, engineering, and legal will be affected by the job cuts.
An email sent to internal staff, reviewed by Reuters, revealed that MPL CEO Sai Srinivas wrote: “With a heavy heart, we have decided to make significant cuts to our Indian team.” The email did not specify the exact number of layoffs.
Srinivas added that MPL is committed to supporting the impacted employees. With India contributing 50% of MPL’s revenue, the company will no longer generate revenue from India due to this change.
Why MPL and Dream11 Gained Popularity
The government banned online real money games due to the financial risks associated with these games, particularly for young people. This ban has led to the closure of several online gaming apps. MPL and Dream11 have grown in popularity in recent years by giving winners the opportunity to win financial prizes. The online gaming industry argues that these games are based on skill and not gambling.