India’s online gaming industry has been thrown into turmoil following the government’s sweeping ban on paid online games, a move that has led to mass layoffs, shuttered popular platforms, and sparked legal challenges. At the center of the upheaval is Mobile Premier League (MPL), one of the country’s largest and most recognizable gaming companies, which announced on September 1, 2025, that it will dismiss nearly 60% of its India-based staff—roughly 300 employees out of a 500-strong workforce—after the new regulations abruptly cut off its primary revenue stream.
The government’s decision, enacted earlier in August 2025, was justified on the grounds of protecting young people from the risks of financial loss and addiction. According to Reuters, officials cited mounting concerns that paid online games, especially those involving fantasy sports and card games like rummy and poker, were leading to problematic behaviors among the youth. The ban’s immediate effect has been profound, not only for companies like MPL but for the entire sector, which had been projected to reach a staggering $3.6 billion valuation by 2029.
In a heartfelt internal email to MPL employees on Sunday, CEO and co-founder Sai Srinivas explained the gravity of the situation: "With a heavy heart we have decided that we will be downsizing our India team significantly." He went on to clarify, "India accounted for 50% 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." The company, which earned roughly $100 million in India last year, now faces the daunting prospect of losing all domestic income virtually overnight.
The layoffs at MPL will affect a broad array of departments, from marketing and operations to engineering, legal, and finance. Srinivas assured staff that MPL would provide support to those impacted during this transition, though he did not specify what form that assistance would take. The move is part of a wider downsizing effort, as the company seeks to adapt to a dramatically altered business landscape.
Peak XV Partners—formerly known as Sequoia Capital India—has been among MPL’s key backers, helping the company achieve a valuation of $2.3 billion in 2021, according to Pitchbook data. The platform had built its reputation and user base by offering paid fantasy cricket and other skill-based games, which, according to industry advocates, should not be classified as gambling. Nevertheless, the government’s blanket ban has made little distinction between games of skill and games of chance, leaving companies like MPL with few options.
MPL is not alone in feeling the sting of the new regulations. Rival Dream11, another major player in the space with an $8 billion valuation, has already suspended its fantasy cricket business. Several other platforms that offered paid poker and rummy have also gone offline in the wake of the ban. The sudden regulatory clampdown has sent shockwaves through an industry that, until recently, was seen as one of the country’s fastest-growing digital sectors, attracting significant investment from both domestic and international venture capital firms such as Tiger Global and Peak XV Partners.
Despite the challenges, not every company is retreating quietly. Gaming firm A23 has become the first to mount a legal challenge against the government’s decision, taking the matter to court. MPL and Dream11, however, have opted not to contest the ban, instead focusing on restructuring and seeking new avenues for growth outside India. As per sources cited by Reuters, MPL plans to bolster its free-to-play offerings in Europe and expand its paid gaming operations in the United States and Brazil, where regulatory environments are currently more favorable.
The broader implications of the ban are still unfolding. While the government maintains that its primary motivation is to protect consumers—especially young people—from the risks associated with paid gaming, industry bodies argue that the move is overly broad and fails to recognize the skill-based nature of many popular games. They contend that fantasy sports, in particular, require significant knowledge and strategy, and should not be equated with gambling, which has long been heavily restricted in India.
For MPL, the immediate focus is on managing the fallout. The company’s India business, which accounted for half of its global revenue, has been effectively wiped out. The shift will require not only a reduction in staff but also a fundamental rethinking of its product offerings and geographic focus. MPL’s continued operations in Europe and the Americas offer a lifeline, but the loss of its home market marks a significant setback for a company that once stood at the forefront of India’s digital entertainment revolution.
The mood among affected employees is understandably somber. While Srinivas’s email expressed a commitment to supporting those who are losing their jobs, the reality is that hundreds of skilled professionals across multiple disciplines now face an uncertain future. The ripple effects are likely to be felt across the Indian tech sector, which has long prided itself on its ability to innovate and adapt in the face of regulatory and market challenges.
As the dust settles, questions remain about the future of online gaming in India. Will legal challenges like the one mounted by A23 gain traction and force a reconsideration of the ban? Or will the government’s tough stance hold, prompting more companies to look overseas for growth? The only certainty for now is that the industry has entered a period of profound change, with companies, investors, and consumers all grappling with the new reality.
For now, MPL’s story serves as a stark reminder of how quickly fortunes can change in the volatile world of tech and digital entertainment. What was once a booming market—expected to reach billions in value within a few years—has been brought to a standstill by a single regulatory decision. As MPL, Dream11, and others chart a new course, the rest of the world will be watching closely to see how India’s gaming giants adapt, survive, and perhaps one day, thrive again.
