Massive layoffs coming up at MPL
From what I hear from a friend who is aware of the leadership discussions, MPL might be looking to lay off close to 50% of its workforce and shut down most of its other BU’s to consolidate by October. This would include folks even till the SVP levels. This might be one of the first pins to fall with the 28% GST rule kicking in by October. Dark days ahead for online RMG industry in India
companies like MPL should not exist in the first place. Why promote gambling?. not for any moral reasons, if someone wants to gamble, let them go to a casino and do it. Instead, making it easier for some one to gamble at any time/anywhere is unacceptable.
Companies like Tinder should not exist in the first place. Why promote pre-marital relationships?. not for any moral reasons, if someone wants to be in a relationship, let them go the traditional routes and do it. Instead, making it easier for some one to swipe at any time/anywhere is unacceptable!
That was a dumb thing to say! Sorry but had to say this.
Let go of the SVP’s too. Ain’t they the most responsible ones to have taken the decisions for the company?
Yeah but tbh, MPL seemed to be have been doing well since the lay offs last year, they were already profitable. But the recent GST fiasco has hit all RMG operators really hard. Most of them were completely blindsided
Oh damn. That’s right.
But, as a rule, can’t buy into this layoff at lower cost roles. Either mix it up or only let few of the high cost roles go. High likelihood the senior guys will not be very hands on competent and after the ops roles are redundant, the companies are going to be more toxic & mass incompetence.
Doesn’t make sense financially or morally.
PS : this is a theory that I m still pondering and brainstorming. Am sure the folks at the decision making seats must have done all possible due diligence. But, seeing the drain of empathy values and morals in the name of profitability, not able to come to terms that these mass layoffs are the right way. Is there no better way?
A summary of the tax ruling - each time you load money into the wallet, you pay a 28% GST to govt. This massively messes up the economic for RMG players. Consider a 2 player game where each person puts in 1000, and the winner takes out everything. Total pot = 2000. MPL takes 20% service fee, and the remaining 1600 goes to winner.
Now, after the ruling, of Rs2k, govt took Rs 560, and if MPL takes Rs 400, it leaves Rs40 gain for the winner. Thats hardly a gain for anyone to play this game ( earlier the winner made 600 if he won, now they make Rs40). Very clear margin pressure for MPL, they can't continue to charge 20%.
The good part is, once you have loaded the wallet they won't have the 28% tax again. An earlier ruling said this tax on every game you play XD.
Also keep in mind that MPL would also have to pay tax on the 20% they are making. A very clear winner in all this is the govt
Also another clear winners are illegal operators like lotus365 or mahadevbet or some other bullshit betting sites that are being peddled by celebs
Since they are illegal in first place they pay zero taxes and so users will ill jump to them in search of better returns, which is horrible
Regulations such as these need to be combined with enforcing strict bans on illegal sites, else they are the actual winners
For speculative purposes , i will not be surprised to see a GST of 28 percent on the financial charges for the same .agree with Qwerty . Even I pay 15 percent for short term trades on stock market on my profit . MPL is a luxury good , let it be charged like that . For the employees , they knew what kind of industry they were joining and risk matrix of such companies . Govt be correct in shoring revenues and reducing deficit and building roads and highways , i see highways and infra and bullet trains coming up around my areas . whats wrong in taxing speculative luxury industry at 28 percent ?
the industry will stablize with high end customers
I love how the CEO just blamed the government and took no responsibility. Classic.
Casinos in Goa are taxed the same 28% and still make a killing.
GST won't impact RMG as much as the PR says it will. Customers mostly don't care.
Mpl and other RMG cos are just overvalued, are competing for a small number of high value gamblers, and need to right-size.
That's clear ignorance. Casinos in Goa till now were charged 28% on entry amount, not on chips. Visit Goa post October and you will see the result of this change in taxation there also.
Casinos in Goa pay 28% on ggr. Imagine they will rake less now GST is on the full face value, so overall not much impact for gamblers.