India’s MPL to sack 60% of native workers after paid gaming ban, supply says

NEW DELHI :Indian on-line gaming app Mobile Premier League (MPL) will sack about 60 per cent of its native workforce as a part of a serious downsizing after the federal government banned paid video games, stated an organization supply with data of the plan, within the first such response to a brand new regulation.

Prime Minister Narendra Modi’s authorities this month banned on-line paid video games, citing monetary and dependancy dangers particularly amongst youth, resulting in a shutdown of many gaming apps providing paid fantasy cricket, rummy and poker video games.

The regulation shocked an Indian business backed by enterprise capital companies akin to Tiger Global and Peak XV Partners that was set to be value $3.6 billion by 2029. MPL and rival Dream11 grew to become common lately by providing paid fantasy cricket video games that permit winners to obtain monetary prizes.

The business says the video games depend on ability and due to this fact are usually not playing, which was already extremely restricted in India.

As MPL focuses on free-to-play video games and bolsters its enterprise within the U.S. market, the corporate supply stated on Sunday it could let go of roughly 300 of its 500 India workers in divisions like advertising, finance, operations, engineering and authorized.

In an inner workers electronic mail despatched on Sunday that was seen by Reuters, MPL CEO Sai Srinivas wrote “with a heavy heart we have decided that we will be downsizing our India Team significantly.” He didn’t specify the variety of job cuts within the electronic mail.

“We are committed to providing those impacted with every possible support during this transition period … India accounted for 50 per cent 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,” he added.

MPL declined to remark to Reuters’ queries.

Backed by Peak XV Partners, previously generally known as Sequoia Capital India, MPL was valued at $2.3 billion in 2021, Pitchbook knowledge exhibits. It additionally has free-to-play choices in Europe and paid video games in United States and Brazil.

The firm supply stated that MPL’s India income final 12 months was roughly $100 million. MPL’s rival, Dream11, valued at $8 billion, has additionally discontinued its fantasy cricket providing. Many different apps providing paid poker and rummy card video games have additionally stopped.

In a primary, Indian gaming firm A23 challenged the federal government’s ban final week, however MPL and Dream11 have determined to not pursue authorized challenges.