Peak XV-backed Mobile Premier League (MPL) does not plan to challenge the government's new online gaming law, which imposes a blanket ban on real-money games, sources told Moneycontrol.
The company has also advised the industry body All India Gaming Federation (AIGF), of which it is a member, not to pursue a legal challenge and instead focus on free-to-play games, sources said. An MPL spokesperson has confirmed this to Moneycontrol.
The development comes even as Head Digital Works, which operates the online rummy platform A23 Rummy, has moved the Karnataka High Court against the law, the first legal challenge to the Promotion and Regulation of Online Gaming Act, as reported by Moneycontrol.
MPL joins a number of companies, including Dream11 parent Dream Sports, Gameskraft, Zupee, and PokerBaazi parent firm Moonshine Technology, which have decided not to challenge the law. AIGF has over 120 members, including MPL, Nazara Technologies, Gameskraft, and Zupee.
The new law prohibits online money games, where a user makes a deposit, directly or indirectly, with the expectation of earning winnings on that deposit.
After Parliament gave its nod to the bill on August 22, real-money gaming companies, including MPL, suspended contests and games involving money on their platforms, though they continue to offer free-to-play options.
Started in 2018 by Sai Srinivas and Shubh Malhotra, MPL offers more than 60 free-to-play games across categories such as board games, card games, puzzle, and casual games on its Android and iOS apps. The company claims to have more than 90 million registered users across Asia, Europe, and North America.
MPL was last valued at $2.3 billion after raising $150 million in September 2021, which also marked its entry into the unicorn club.
For the financial year 2023-24, the startup's revenue went up 22 percent to $130 million. It also achieved break even with an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $0.2 million.
MPL has a presence in North America, Africa, and Europe, in addition to India. About 31 percent of the company's revenues in FY24 came from international markets.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
