Shares of online gaming platforms cracked sharply in trade on Wednesday, August 20, as the new draft online gaming bill received the Union Cabinet's nod. Further, the Promotion and Regulation of Online Gaming Bill 2025 is slated to be introduced in the Lok Sabha later today.
The draft bill aims to prohibit all pay-to-play online games, including both games of skill and chance. If passed, the bill would pause the total operations of regulated real-money gaming (RMG) platforms across India.
While industry members decried the move, the government defended the bill, citing social risks linked to online money gaming. The draft bill highlighted the immersive and addictive design of such platforms, which have led to mental health issues among young players.
At 9.20 a.m., shares of Nazara Technologies were quoting Rs 1,330.8, down 5 percent, while Delta Corp stock was lower by 4 percent at Rs 89.20 per share.
However, in a filing with the bourses, Nazara acknowledged that the firm has exposure to RMG via its stake in Moonshine, that owns and operates PokerBaazi. "Nazara has no direct exposure to real money gaming (RMG) businesses. As per its latest reported financials, the contribution to revenues and EBITDA by RMG business is NIL. The Company’s only indirect exposure to RMG is through its 46.07 percent stake in Moonshine," said the company.
In September 2024, Nazara Technologies had picked up a 47.7 percent stake in Moonshine Technology for around Rs 832 crore. The firm operates India's leading poker platform PokerBaazi.
In a conversation with CNBC-TV18, Dharmesh Kant of Chola Securities noted that the online gaming bill will pose a serious negative for the real-money gaming industry. If this is paused, around 25-30 percent will be shaved off Nazara Technologies valuations.
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