The gaming industry is experiencing significant disruption due to the prohibition of real money games following the passage of the Online Gaming Bill. The ramifications of this ban are anticipated to become apparent soon, with indications that the prominent gaming app Mobile Premier League (MPL) intends to implement substantial employee layoffs. A source within the company, familiar with their strategic plans, indicated that MPL may terminate the employment of 60% of its staff as a result of the new regulations imposed on the online gaming sector.
MPL is now prioritizing its operations in the US market, primarily concentrating on free-to-play games. According to reports from the Economic Times, a company insider has revealed that around 300 out of 500 Indian employees from various departments, including marketing, operations, finance, engineering, and legal, will be affected by these layoffs.
An internal email, reviewed by Reuters, was distributed to staff members. In this communication, MPL CEO Sai Srinivas conveyed, “It is with a heavy heart that we have decided to make significant reductions to our Indian team.” The email did not explicitly state the total number of layoffs planned.
Srinivas also affirmed the company’s commitment to providing assistance to the employees affected. As India contributes 50% of MPL’s revenue, this strategic shift signifies the end of revenue generation from the Indian market.
Factors Contributing to the Popularity of MPL-Dream 11
The government’s ban on online real money games was driven by concerns regarding financial losses among young people. This policy has led to the closure of various online gaming applications. MPL and Dream11 have gained considerable popularity over the past few years, primarily because they offer financial incentives to winning players. The online gaming industry maintains that these games hinge on skill rather than chance, thus differentiating them from gambling.
