substantial income lost: MPL lays off 60% of employees following prohibition of paid games

In a surprising turn of events, two of India's leading online gaming platforms, MPL and Dream11, have suspended their paid fantasy cricket offerings. This decision comes amidst a wave of uncertainty sweeping through the domestic Indian gaming industry.

Previously, MPL, valued at $2.3 billion, was generating half of its revenues from India, amounting to an estimated $100 million in FY24. However, the company has announced that India will no longer be a source of income for the platform. This decision follows a similar move by Dream11, which is valued at a staggering $8 billion.

Several poker and rummy apps have also exited the Indian market, indicating a broader trend of challenges facing the industry. MPL, in response, has decided to significantly downsize its India team.

Despite a gaming company, A23, legally challenging the government ban last week, MPL and Dream11 have chosen not to fight it in court. This decision seems to suggest a broader reluctance among gaming companies to engage in legal battles against government restrictions.

Interestingly, MPL is continuing its free-to-play models in Europe and operating paid gaming in the U.S. and Brazil. This strategy could indicate a shift in focus towards international markets as the Indian market becomes more challenging.

The Indian gaming industry, once a booming sector, now finds itself in a precarious position. The reasons behind the current uncertainty are not entirely clear, but the decisions made by these major players suggest a need for adaptation and resilience in the face of new challenges.

As the industry navigates these uncharted waters, it remains to be seen how companies will adapt and what the future holds for online gaming in India.