Mobile Premier League (MPL), a prominent online gaming and esports operator focused on the Indian market, has announced plans to cut around 60% of its workforce. This decision comes in the wake of the Indian government’s move to enforce a ban on iGaming across the nation. The legislative measure, aimed at dismantling the lucrative online gambling industry, was introduced in August, swiftly passed by the upper house of parliament, and received presidential assent on 22 August.
The ban encompasses games where users pay fees, deposit money, or place other stakes for monetary gain, effectively targeting the core operations of many gaming platforms. The impact of this ban has already begun to ripple through the market, with notable closures such as Flutter’s Junglee real-money gaming operations in India, which ceased on 25 August.
MPL has not been immune to these changes. Its MPL.live site has halted operations, now displaying a message to users stating: “Deposits are no longer available on the MPL app. In compliance with law, no cash games are available on MPL.” This significant shift in the operational landscape has led to internal changes, as highlighted in an email sent to MPL staff last week.
In the email, MPL CEO Sai Srinivas communicated the challenging decision to downsize the India team substantially. Although he refrained from specifying the exact number of positions to be eliminated, a source familiar with the situation told Reuters that approximately 300 of the 500 employees based in India might be affected. The downsizing will likely impact various departments, including marketing, finance, operations, engineering, and legal.
“It is with a heavy heart we have decided we will be downsizing our India team significantly,” read the email from Srinivas. He assured employees that the company is committed to offering every possible support during this transition period. The gravity of the situation is underscored by the fact that India accounted for half of M-League’s revenues, meaning the company will no longer generate any revenue from India in the foreseeable future.
Despite the setback in India, MPL is exploring opportunities beyond its home market. The company has been actively pursuing growth within the United States, seeking to establish a stronger foothold in the competitive American gaming landscape.
The abrupt nature of the iGaming ban has not gone unchallenged. Several operators have sought legal recourse to counteract the sweeping prohibition. In a notable case, Indian gaming company A23 filed a legal challenge at the High Court of Karnataka, arguing that the ban “criminalises the legitimate business of playing online games of skill,” potentially leading to the sudden closure of numerous gaming companies.
A23 further contends that the law is a prime example of “state paternalism” and should be declared unconstitutional when applied to games of skill like rummy and poker. With over 70 million players, A23 positions itself as a significant player in the online gaming space.
Critics of the ban argue that such measures could backfire, potentially driving a surge in illegal underground gaming activities in India. Segev LLC, a law firm specializing in gaming law, expressed concerns that the legislation, while portrayed as progressive, actually regresses against the global trend towards licensure and regulation. This model typically includes responsible gaming initiatives and consumer protections.
Trade bodies within the Indian gaming sector, including the All India Gaming Federation, the eGaming Federation, and the Federation of Indian Fantasy Sports, issued a joint statement expressing alarm. They termed the ban a possible “death knell” for the Indian gaming industry, which has seen substantial growth and investment in recent years.
While Indian President Droupadi Murmu has yet to formally sign off on the legislation, it is widely presumed he will do so, given his prior endorsement of the proposal. The industry remains on edge, anticipating the potential ramifications of such a landmark policy shift.
The future of iGaming in India hangs in the balance, with stakeholders closely monitoring how the ban will be implemented and whether any amendments might be considered to allow skill-based games a reprieve. The outcome could significantly influence the trajectory of both domestic and international gaming companies operating in the region, shaping the industry’s future in one of the world’s most populous nations.
As MPL and other operators navigate this uncertain climate, the focus may shift toward diversification and exploring new markets to offset losses incurred from the Indian ban. Observers suggest that the industry’s resilience will be tested as it adapts to changing regulatory landscapes, both at home and abroad.
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