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Nazara terminates ₹15.9 crore PokerBaazi stake purchase after online money gaming ban
Moonshine Technology, in which Nazara holds a stake, has been active in the real money gaming space, an industry that until recently had been seeing rapid growth in India.
The acquisition was part of a broader Share Purchase Agreement (SPA) signed in September 2024 with multiple investors
Gaming and sports media company Nazara Technologies Limited has terminated its plan to acquire the remaining stake in Moonshine Technology Private Limited parent of PokerBaazi after India’s newly enacted Promotion and Regulation of Online Gaming Act, 2025 imposed a blanket prohibition on real money gaming.
In an official filing with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), Nazara said that it had earlier agreed to acquire 38,073 fully paid-up equity shares of Moonshine Technology, representing 0.96% of its equity share capital, from I3 Interactive Inc. The transaction was valued at around ₹15.9 crore.
The acquisition was part of a broader Share Purchase Agreement (SPA) signed in September 2024 with multiple investors, including PSM Group Limited, Bellerive Capital (BCP) 6 Limited, Shells and Shores Consultancy & Holdings LLP, I3 Interactive Inc, and several individual shareholders.
However, the passage of the Promotion and Regulation of Online Gaming Act, 2025, which was passed on August 22, 2025, has changed the landscape for gaming companies in India. The legislation specifically bans online real money gaming, including poker and other cash-based digital games. Nazara said this regulatory shift constituted a “material adverse effect” under the SPA, giving it grounds to walk away from the agreement.
“As a result, the SPA in relation to I3 Interactive Inc. shall stand terminated with effect from the expiry of thirty (30) days from the date of receipt of the notice of termination,” Nazara stated in its filing, adding that all rights and obligations under the agreement will cease thereafter, except as explicitly provided in the SPA.
Nazara Technologies, headquartered in Mumbai, is one of India’s leading publicly listed gaming and esports companies, with a presence in markets across India, the Middle East, Africa, and Europe. The company has investments across segments including esports, gamified learning, and interactive gaming, with a strategy of expanding through acquisitions and partnerships.
Moonshine Technology, in which Nazara holds a stake, has been active in the real money gaming space, an industry that until recently had been seeing rapid growth in India. The partnership with I3 Interactive Inc. was meant to strengthen Nazara’s position in this high-stakes segment.
The Promotion and Regulation of Online Gaming Act, 2025 marks a significant turning point for India’s real money gaming industry. By banning real money gaming, the law impacts several operators that had relied on poker, rummy, fantasy sports, and other skill-based cash games as key revenue drivers. Industry analysts believe the move could trigger consolidation, business model shifts, and even legal challenges.
For Nazara, which has deliberately kept a diversified portfolio spanning esports, gaming content, and education-focused platforms, the termination of the Moonshine acquisition highlights its cautious approach amid regulatory uncertainties.
While the immediate financial impact of canceling the ₹15.9 crore transaction may be limited compared to Nazara’s broader operations, the development signals how quickly regulatory changes can alter growth strategies in India’s online gaming sector. Investors will likely watch closely how Nazara adapts its expansion plans in the wake of the new law.
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