India’s sweeping ban on paid online games has delivered a heavy blow to one of the country’s largest gaming platforms, Mobile Premier League (MPL). The Bengaluru-based unicorn confirmed that it will let go of nearly 60 percent of its Indian workforce — about 300 employees — after the new regulation wiped out the company’s core revenue streams.

The announcement came directly from MPL’s co-founder and chief executive, Sai Srinivas, in an emotional email to employees on Sunday. “With a heavy heart we have decided that we will be downsizing our India team significantly,” Srinivas wrote. He added that India had contributed half of MPL’s overall revenues, and with the ban in place, “we would no longer be making any revenue from India in the near future.”

The layoffs will affect teams across departments, including marketing, operations, engineering, legal, and finance. While Srinivas assured staff that the company would extend support during the transition, he did not provide details of the assistance package.

The Indian government’s decision, announced earlier this month, prohibits all online paid games such as fantasy sports, rummy, and poker. Officials cited risks of addiction and financial losses, particularly among young players, as reasons for the move. The ban has dramatically altered the trajectory of an industry that was projected to touch $3.6 billion by 2029.

For MPL, the impact is immediate and severe. According to Pitchbook data, the company had been valued at $2.3 billion in 2021 and generated roughly $100 million in India last year. That revenue stream has now vanished overnight. Backed by Peak XV Partners (formerly Sequoia Capital India), MPL is expected to shift its focus toward international markets. The platform still operates free-to-play games in Europe and continues to run paid gaming businesses in the United States and Brazil.

The shockwaves extend beyond MPL. Dream11, India’s most prominent fantasy sports platform with an $8 billion valuation, has already suspended its fantasy cricket business. Other poker and rummy operators have shut down services, leaving employees and users alike in limbo.

Industry representatives argue that fantasy sports and card-based skill games should not be equated with gambling, which has long faced restrictions in India. They contend that such formats are based on skill rather than chance, and therefore deserve a separate regulatory framework.

Still, not every company is bowing out. Gaming firm A23 has filed a legal challenge against the government’s decision, making it the first platform to contest the ban in court. MPL and Dream11, however, have chosen not to pursue litigation, instead bracing for a complete business shift away from the Indian market.

For hundreds of employees at MPL and other firms, the new policy means abrupt job losses and an uncertain future. For the industry, it marks the most significant disruption in recent years, forcing companies to rethink strategies, cut costs, and seek opportunities abroad.