Nazara Technologies saw its share price decline 6% on August 20, 2025, following the cabinet's approval of the Online Gaming Bill, 2025, which aims to introduce stringent controls on real-money online gaming services across India.
The Online Gaming Bill, 2025, proposes a nationwide ban on real-money online games, advertising for such platforms, and associated financial transactions. If implemented, the legislation will restrict financial institutions and banks from facilitating payments to these gaming platforms. This sweeping regulation comes at a time when Nazara holds 46.07% in Moonshine Technologies, the company behind the online poker platform PokerBaazi.
Nazara has already invested ₹805 crore in Moonshine Technologies and plans to invest an additional ₹255 crore through compulsorily convertible preference shares. Despite not controlling the company, PokerBaazi represents a considerable portion of Nazara’s gaming exposure. In Q1 FY26, Moonshine contributed ₹191.8 crore in revenue, accounting for 38% of Nazara's reported revenue of ₹498.8 crore.
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Following reports of the bill’s approval, Nazara clarified in a stock exchange filing that it does not have direct exposure to real-money gaming. The company stated that neither revenue nor EBITDA from real-money gaming contributed to its Q1 FY26 financials. The impact is reflected only as a non-controlling associate with a negative profit share under profit after tax reporting.
On August 20, 2025, Nazara Technologies share price opened at ₹1,350.00 on NSE, below the previous close of ₹1,399.70. During the day, it surged to ₹1,357.40 and dipped to ₹1,301.00. The stock is trading at ₹1,303.50 as of 12:25 PM. The stock registered a significant decline of 6.87%.
Over the past week, it has declined by 7.85%, over the past month, it has declined by 7.85%, and over the past 3 months, it has moved up by 0.63%.
Nazara Technologies experienced a 6% share drop as markets reacted to the Online Gaming Bill’s potential to ban real-money gaming in India. While Nazara clarified limited direct exposure, its strategic investments in PokerBaazi could face financial strain, further amplifying the industry's cautionary outlook amidst regulatory changes.
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Published on: Aug 20, 2025, 3:38 PM IST
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