350 people, or roughly 50% of its India workforce, are being let go by Mobile Premier League (MPL), a well-known fantasy sports and online gaming firm in India. This occurs shortly after New Delhi levied a 28% tax on real-money online gaming.People with knowledge of the situation stated that the Bengaluru-based business initially revealed its intentions to fire staff last week and then sent a formal message on Tuesday.
MPL had earlier opted out of commenting. But after the report's release, the layoff was officially announced. As a digital business, our variable expenditures are mostly related to staff, servers, and office equipment. Sai Srinivas, the founder and CEO of MPL, sent an email to the company's staff on Tuesday stating that in order to survive and ensure that the firm is profitable, we must take action to reduce these costs.
The Bengaluru-based business has already experienced two rounds of layoffs in just a year. In May 2022, it laid off more than 100 workers and left the Indonesian market.
The action comes after New Delhi implemented a new taxation policy for the online gaming sector. Top federal and state finance ministers in India have revealed intentions to impose an indirect tax of 28% on online gambling, gambling establishments, and horse racing. According to Srinivas' email from Tuesday, the new taxation rule raises MPL's tax burden by up to 350–400%.
The All India Gaming Federation, which represents players such as Mobile Premier League, Gameskraft, Paytm First Games, Zupee, Nazara, and Rush, called the new taxing law "unconstitutional, irrational, and egregious."
Tiger Global, DST Global, Peak XV, Steadview Capital, and Kotak Private Equity were among the prominent investors who later addressed a letter to Prime Minister Narendra Modi, pleading with him to reconsider the "onerous tax regime."
According to the investors' association, the choice would result in a $2.5 billion write-off and the loss of 1 million direct and indirect jobs. The Indian government did not, however, reverse its choice.
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