MPL-backed web3 fantasy platform Striker to shut down operations

Striker has become the latest casualty of the government's 28 percent GST regime on the real-money gaming sector.

Striker, a Web3-based fantasy platform backed by skill gaming unicorn Mobile Premier League (MPL), is shutting down its operations, people familiar with the matter told Moneycontrol, becoming the latest casualty of the government's 28 percent GST regime on the real-money gaming sector.

In recent months, startups such as Fantok, Quizzy, and One World Nation have either shut down or temporarily suspended their operations, while companies such as MPL, Hike (Rush Gaming), and Spartan Poker have laid off employees to streamline costs in light of the new tax regulations that came into force from October 1.

Industry executives and other stakeholders have previously said the rules would increase a company's tax burden by 350 to 400 percent, severely impacting the growth trajectory of the sector.

Striker is founded by two MPL employees Krishna Mohan Vedula and Nitesh Jain. MPL provided tech and infrastructure support to the company, Moneycontrol reported in September 2022. Vedula has since left the company, sources told Moneycontrol.

Striker allows users to collect digital player trading cards and make fantasy cricket teams to compete in contests and win cash prizes. Users can also trade player cards to earn money from Striker's marketplace. The platform offers five different types of cards based on their rarity— Common, Rare, Epic, Legendary, and Striker.

What's particularly noteworthy is that these cards use player caricatures rather than their pictures. Moneycontrol earlier reported that Striker works with a community of artists across the country to create digital art collectibles. Apart from the remuneration the artists get for their creations, they also get a commission on every card purchase and sale.

Court case

This move had resulted in Dream Sports-backed Rario approaching the Delhi High Court to prevent MPL and Striker from offering fantasy gaming through NFTs (non-fungible tokens) in February 2023.

Rario had alleged that Striker's player caricatures and identifiers, such as player names and surnames, infringe on the personality rights it has licenced exclusively from nearly 170 cricketers, including Harshal Patel, Arshdeep Singh, and Umran Malik, in order to offer their digital player cards on the platform.

The Delhi High Court, however, rejected Rario's plea for interim injunction, mentioning that the information utilised by Striker was publicly available and could be used by anyone.

MPL is also buying out all the tokens in its web3 investment Good Game Exchange (GGX), in a potential consolidation move, sources have told Moneycontrol.

The company, which incubated GGX last year, owns a 20-percent stake in GGX in the form of tokens as its initial investor and strategic partner. It is now buying the rest of the tokens in GGX Protocol Limited in exchange for preference shares in the company, sources have told Moneycontrol. Entrackr had previously reported this development.

MPL is issuing about 2.5 million shares worth $12.75 million to the existing investors of GGX, as per the company's regulatory filing in Singapore.