The online gaming sector faces a major challenge due to the ban on real money games following the enactment of the Online Gaming Bill. The ban’s consequences are likely to materialize soon, with reports suggesting that the popular gaming app Mobile Premier League (MPL) is planning extensive layoffs. According to an inside source, the company is considering letting go of 60% of its employees due to the new regulations impacting the online gaming industry.
MPL is shifting its focus to free-to-play games while strengthening its presence in the US market, as per the Economic Times. An internal source mentioned that roughly 300 of the 500 Indian employees in departments like marketing, operations, finance, engineering, and legal will be affected by the layoffs.
Reuters reviewed an internal email sent to staff, where MPL CEO Sai Srinivas expressed that “with a heavy heart, we have made the tough decision to significantly reduce our Indian team.” The email did not specify the precise number of layoffs.
Srinivas stated the company’s commitment to supporting the impacted employees. India contributes 50% of MPL’s revenue, meaning the company will no longer generate revenue from the Indian market.
Reasons Behind the Popularity of Games like MPL-Dream 11
The government banned online real money games due to the financial risks faced by young individuals. This decision has led to the shutdown of online gaming apps. MPL and Dream11 gained popularity over the past few years by offering winners financial rewards. The online gaming industry contends that these games rely on skill, distinguishing them from gambling.