Nazara Tech shares slide 8% today after online gaming bill passage
Nazara has so far invested Rs 805 crore in Moonshine via equity (cash and stock) and holds compulsory convertible shares worth Rs 255 crore.
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Shares of Nazara Technologies, the online gaming firm, continued their sharp decline after the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025, on Wednesday evening.
The stock slumped 8% in early trading on Thursday, extending the nearly 13% slide in the previous session, as investors grew wary of regulatory uncertainty in the real money gaming (RMG) segment. The stock was trading at Rs 1,125 apiece on BSE on Thursday noon.
Nazara’s exposure to the RMG space comes through its 46% stake in Moonshine Technologies Pvt. Ltd., the parent of PokerBaazi. Joint Managing Director and CEO Nitish Mittersain flagged risks to the company’s investment if the bill imposes curbs on real money gaming.
"We own 46% in Moonshine, and if the government bans real money gaming, that particular investment could potentially be at risk," Mittersain said.
Nazara has so far invested Rs 805 crore in Moonshine via equity (cash and stock) and holds compulsory convertible shares worth Rs 255 crore. Mittersain said that the company would think of converting the Rs 255 crore shares, which are due in 2-3 years, depending upon the circumstances.
The Promotion and Regulation of Online Gaming Bill, 2025 aims to regulate and streamline India’s fast-growing gaming industry, but the lack of clarity on the treatment of RMG players has rattled investors.
The Bill aims to regulate e-sports, educational and social gaming while imposing a blanket ban on online money games that involve monetary stakes.
The government has justified the ban by citing concerns over fraud, money laundering, tax evasion, and links to terrorist financing through offshore gaming platforms. The Statement of Objects and Reasons highlights the manipulative algorithms and addictive design features of such games, which often lead to compulsive behaviour, financial losses, and mental health issues, especially among youth and vulnerable populations.
The Bill also grants investigative powers to designated authorities, allowing them to search, seize, and block operations of money-gaming platforms, both physical and digital, without a warrant. Non-compliant platforms could be blocked under provisions of the Information Technology Act, 2000.
