India's only listed online gaming firm Nazara Technologies Ltd saw further selling pressure in trade on Thursday, August 21, after the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025.
The 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.
At 9.18 a.m., shares of the firm were trading at Rs 1,125, lower by 7.8 percent on the NSE, hitting their lowest level in 15 weeks. In the previous session, shares of Nazara Technologies sank almost 13 percent, while Delta Corp erased all intraday losses to settle with minor gains.
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.
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.
Speaking to CNBC-TV18, Nitish Mittersain, the founder and CEO of the firm, said that if real-money gaming is banned, then Nazara Technologies’ Rs 805 crore investment into PokerBaazi will be at risk. However, he added that the core platform is strong and other opportunities can be explored.
Domestic brokerage ICICI Securities cut its rating on Nazara Technologies. The brokerage had earlier assigned a Rs 400 valuation to Moonshine in Nazara's valuation, but given the latest development, this has been cut to zero. As a result, the target price has been trimmed from Rs 1,500 to Rs 1,100 per share.
"Nazara’s other verticals such as gamified early learning, publishing and gaming arcades remain unaffected. The formal recognition of eSports as a sport could be a structural positive for Nodwin Gaming; however, as of now, impact on earnings seems limited," said the brokerage.
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