Nazara Technologies Shares Crash 22% in Two Days After Online Gaming Bill 2025 Approval
Mumbai, Aug 21 (TheTrendingPeople.com): Shares of Nazara Technologies Limited, India’s only publicly listed online gaming company, witnessed a sharp decline for the second consecutive day on Thursday. The stock fell 11.19% to an intra-day low of ₹1,085 on the Bombay Stock Exchange (BSE), extending its two-day loss to over 22%.
The decline comes in the wake of the Promotion and Regulation of Online Gaming Bill, 2025, which was passed in both Houses of Parliament earlier this week. The bill seeks to ban all pay-to-play online games, irrespective of whether they are based on skill or chance, triggering significant market concerns for gaming companies with exposure to real-money gaming.
Why Nazara Shares Are Under Pressure
The government’s move to regulate and restrict the online gaming industry has directly impacted investor sentiment around Nazara Technologies. While the company has diversified business segments ranging from gamified early learning and game publishing to gaming arcades, its investment in real-money gaming remains under the spotlight.
Nazara holds a significant stake in Moonshine Technologies, which operates PokerBaazi, one of India’s leading real-money poker platforms. According to company filings, Nazara has invested over ₹800 crore in the venture. Analysts warn that this investment could face a potential write-off if the proposed bill translates into a blanket ban on real-money online gaming.
Company’s Clarification
Despite the market panic, Nazara Technologies has sought to reassure investors, clarifying that the new legislation will not materially affect its core businesses.
In an exchange filing, the company said:
- Its major businesses — including gamified early learning platforms, publishing verticals, and gaming arcades — are unaffected by the bill.
- The company’s revenue and EBITDA projections remain intact.
- The exposure lies primarily with Moonshine, and any financial impact will depend on how the regulatory framework unfolds.
Nazara’s Joint Managing Director and CEO, Nitish Mittersain, addressed the issue in a television interview, saying:
“We hold about 46% in PokerBaazi. If there is indeed a move to ban online real-money gaming, then that particular investment could be at risk. It is too early to estimate the scale of any write-off, but our core platform remains strong and continues to create opportunities across different markets.”
Brokerages React: Downgrade and Target Price Cut
The regulatory uncertainty has already forced analysts to revise their outlook on Nazara. ICICI Securities downgraded the stock and cut its target price from ₹1,500 to ₹1,100, citing risks related to the PokerBaazi exposure.
The brokerage said it has assigned zero value to Moonshine in its valuations due to the high level of policy uncertainty surrounding real-money gaming in India.
Other brokerages have echoed similar concerns, suggesting that while Nazara’s diversified portfolio gives it resilience, the headline risk from the bill could weigh on its stock in the near term.
Background: The Online Gaming Bill 2025
The Promotion and Regulation of Online Gaming Bill, 2025 marks a significant shift in India’s policy approach towards the gaming sector.
Key highlights of the bill include:
- A ban on pay-to-play games, whether based on chance or skill.
- Formation of a central regulatory authority to oversee online gaming practices.
- Stricter rules around advertising, payment gateways, and data privacy within the sector.
- Provision for penalties and fines for companies that violate the law.
The bill is seen as an attempt to address growing concerns about online gaming addiction, financial risks for users, and legal ambiguity around skill-based games such as rummy and poker.
Impact on India’s Gaming Industry
India’s online gaming sector has been on a high-growth trajectory over the past decade, with rising internet penetration and a young consumer base. According to industry estimates, the sector was projected to reach a valuation of $8–10 billion by 2027.
However, the new bill could significantly reshape the business models of companies operating in this space:
- Startups and mid-sized platforms reliant on real-money games may face existential risks.
- Esports and gamified learning companies could benefit as investments flow towards segments unaffected by the ban.
- Foreign investors may exercise caution, given the uncertainty in India’s regulatory landscape.
Investor Sentiment and Market Outlook
The steep fall in Nazara shares reflects heightened investor anxiety. Analysts suggest that while the core business remains stable, the market is factoring in the worst-case scenario of a complete ban on PokerBaazi.
Some experts believe that if the government clarifies its stance — particularly on skill-based gaming — the stock could stabilize. Until then, volatility is expected to remain high.
What Investors Should Watch
- Regulatory clarity: The final implementation of the Online Gaming Bill and whether exemptions are made for skill-based games.
- Company’s strategy: How Nazara reallocates its capital if its PokerBaazi investment becomes non-viable.
- Earnings outlook: Whether the company can continue delivering growth through unaffected segments such as gamified early learning and publishing.
- Brokerage updates: Revisions in ratings and target prices from other research houses.
Final Thoughts from TheTrendingPeople.com
The sharp decline in Nazara Technologies’ stock highlights the fragile balance between regulation and innovation in India’s fast-growing gaming industry. While the company has diversified interests that provide some cushion against policy shocks, its sizeable exposure to PokerBaazi is a real risk factor.
For investors, the key lies in monitoring how the Online Gaming Bill 2025 is enforced and whether the government provides any clarity or relaxation for skill-based gaming platforms. Until then, Nazara’s stock is likely to remain under pressure, reflecting broader concerns about the future of real-money gaming in India.