Online Gaming Bill Sends Nazara Technologies Stock Sinking 12%
Lok Sabha Speaker Om Birla on Wednesday! (Image Sansad TV)
Online Gaming Bill, 2025 proposes a nationwide ban on money-based games, sparking concerns over Nazara’s ₹1,060 crore investment in PokerBaazi
By S JHA
MUMBAI, August 20, 2025 — Shares of Nazara Technologies Ltd. plunged 7.6% on Wednesday after the Union Government tabled the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha, triggering investor concerns over the fate of money-based gaming platforms.
The legislation, introduced by Electronics & IT Minister Ashwini Vaishnaw, seeks to establish a comprehensive national-level regulatory framework for the gaming industry. While it promotes e-sports, social, and educational games, the bill calls for a complete ban on online money games — defined as those involving deposits or stakes with the promise of monetary returns.
“Nazara Technologies, a key player in India’s gaming ecosystem, holds a 48% stake in PokerBaazi (Moonshine Technologies). The company has already invested ₹805 crore in the platform and has plans for an additional ₹255 crore infusion,” said StockEdge in a post shared on its Telegram channel.
It also quoted analysts at Prabhudas Lilladher cautioning that if the ban is enacted, Nazara faces a potential write-off risk on its entire ₹1,060 crore exposure, which weighed heavily on market sentiment.
Brokerages have since trimmed their target prices on Nazara, reflecting a cautious outlook. The sharp stock decline underscores how vulnerable gaming companies are to policy uncertainty, particularly around real-money gaming.
The bill prescribes stringent penalties — including up to three years’ imprisonment or fines up to ₹1 crore for offering online money games, and jail terms for advertising or promoting such services. It also empowers the Centre to block access to violative platforms and authorises enforcement agencies to conduct investigations in digital spaces.
The government has justified the ban as a move to protect youth from addiction, financial ruin, fraud, and security risks, while balancing the promotion of innovation in e-sports and regulated gaming.
For Nazara, however, the proposed law could prove to be a serious setback, raising uncertainty over its growth strategy in real-money gaming.
Screener described Nazara technologies as a “leading India based diversified gaming and sports media platform with presence in India and across emerging and developed global markets such as Africa and North America, and offerings across the interactive gaming, eSports and gamified early learning ecosystems.”
The market capitalisation of the company stands at ₹11280 crores. The stock is trading at a PE valuation of 91 even while return on equity (ROE) and return on capital employed (RoCE) stand at just 3.02& and 3.08%. Shares of Nazara closed at ₹1218 on Wednesday after a sharp fall.
(Disclaimer: This article makes n o recommendation for buy or sell of shares of any company)
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