Nazara shares tank 15% on real money gaming ban

Mumbai: Shares of online gaming platform Nazara Technologies tanked more than 15% through Wednesday's trading session after a bill banning real money gaming (RMG) was passed in the Lok Sabha.

The bill aims "to prohibit the offering, operation, facilitation, advertisement, promotion and participation in online money games," among other curbs.

Shares of Nazara Technology ended 12.8% lower at ₹1,219.4. Its benchmark, the Nifty Microcap 250 where the company was the top loser, closed 0.1% lower.


According to 'The Promotion and Regulation of Online Gaming Bill, 2025', the government has taken this action 'to protect individuals, especially youth and vulnerable populations, from the adverse social, economic, psychological and privacy-related impacts of such games.'

"Ban on real money gaming businesses is likely to put investment of ₹1,060 cr by Nazara into PokerBaazi (for 46.07% stake) at risk, which is a loss making business," said Sunny Agrawal, head of fundamental research at SBI Securities. "Delta Corp is not likely to be impacted, as it has already divested its poker platform Adda52 in February 2025."

'Indirect Exposure'
In an exchange clarification, Nazara said it has no direct exposure to real money gaming (RMG) businesses, and as of first quarter financials, 'the contribution to Revenues and EBITDA by RMG business is NIL.' Its only indirect exposure is a 46.07% stake in PokerBaazi's parent Moonshine Technologies, which is not consolidated in Nazara's financials and reported a negative profit after tax contribution in the first quarter.