Fantasy platform Striker, supported by MPL and web3, to cease operations
- ByStartupStory | December 18, 2023
Striker, a Web3-based fantasy platform supported by Mobile Premier League (MPL), is set to close down operations, according to sources familiar with the situation as reported by Moneycontrol. This decision marks the latest impact of the government’s 28 percent GST imposition on the real-money gaming sector, causing upheaval across various startups like Fantok, Quizzy, and One World Nation, which have either ceased operations or temporarily halted them. Additionally, companies like MPL, Hike (Rush Gaming), and Spartan Poker have implemented cost-cutting measures, including employee layoffs, in response to the new tax regulations effective since October 1.
The GST rules are predicted to escalate companies’ tax obligations by 350 to 400 percent, significantly hampering the sector’s growth prospects, as stated by industry experts and stakeholders earlier.
Founded by Krishna Mohan Vedula and Nitesh Jain, both former MPL employees, Striker had received technical and infrastructural support from MPL, as highlighted in Moneycontrol’s September 2022 report. Notably, Vedula has departed from the company, sources informed Moneycontrol.
Striker allowed users to build fantasy cricket teams by collecting digital player trading cards, competing in contests, and winning cash prizes. The platform also featured a marketplace for trading player cards, categorized into Common, Rare, Epic, Legendary, and Striker based on their rarity. Moneycontrol previously reported that Striker collaborated with artists nationwide to create digital art collectibles. Artists not only received compensation for their creations but also earned commissions from each card purchase and sale.
A legal dispute arose when Dream Sports-backed Rario filed a case against MPL and Striker in February 2023, objecting to the use of player caricatures and identifiers that allegedly infringed on the exclusive personality rights licensed by Rario from nearly 170 cricketers. However, the Delhi High Court dismissed Rario’s request for interim injunction, citing the publicly available nature of the information utilized by Striker.
Meanwhile, MPL is reportedly acquiring all tokens from its web3 investment, Good Game Exchange (GGX), in a potential consolidation maneuver. The company, which initially incubated GGX and holds a 20-percent stake in GGX Protocol Limited, is purchasing the remaining tokens in exchange for preference shares, according to sources familiar with the matter as reported by Moneycontrol and previously by Entrackr.
MPL’s regulatory filing in Singapore indicates the issuance of approximately 2.5 million shares valued at $12.75 million to existing GGX investors.
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