Shares of Nazara Technologies Ltd. tumbled as much as 6% on Wednesday, August 20, after reports suggested that the government is set to introduce sweeping restrictions under the Online Gaming Bill, 2025. The stock hit an intraday low of ₹1,315 before recovering slightly to trade at ₹1,329.10, down over 5% from Tuesday’s close of ₹1,399.70.
According to reports, the draft Bill seeks to prohibit individuals and companies from offering online money games or related services in India. It will also bar advertisements for such games and restrict financial transactions linked to them. Banks and payment institutions may be directed to block transactions involving banned gaming platforms.
If passed, the Bill would mark a major tightening of regulation for India’s online gaming sector, raising concerns about revenue streams of companies linked to real-money formats.
Brokerage flags valuation risk
Brokerage firm Prabhudas Lilladher (PL) raised red flags over Nazara’s exposure to PokerBaazi (Moonshine Technologies) in light of the proposed ban. Nazara currently holds about 48% stake in PokerBaazi, with an investment of ₹805 crore already made and an additional ₹255 crore planned via compulsorily convertible preference shares.
PL cautioned that if real-money gaming is outlawed, Nazara’s entire investment in PokerBaazi could be written off. Since PokerBaazi accounts for nearly 35% of PL’s valuation target for Nazara, the brokerage warned that its target price of ₹1,345 would drop sharply to ₹917 if PokerBaazi is excluded.
Market outlook
The sharp fall in Nazara shares highlights investor nervousness around the regulatory overhang in the gaming space. Analysts say the government’s latest move could spark further volatility in listed gaming-related stocks, pending clarity on the final shape of the legislation.
