India's only listed online gaming firm, Nazara Technologies Ltd, saw fresh selling pressure on Thursday, August 21, after the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill, 2025.

The legislation, which now moves to the Rajya Sabha, proposes to ban all pay-to-play online games, including those categorised as games of skill or chance. If enacted, it would effectively suspend the operations of all regulated real-money gaming (RMG) platforms in India, sending shockwaves across the sector.

At 12:16 p.m., Nazara’s stock traded at ₹1,106 on the NSE, down 9.3 percent and marking a 15-week low. The decline followed a 13 percent drop in the previous session. Delta Corp, another listed company with gaming exposure, erased intraday losses on Wednesday to settle with minor gains.

What the Bill Proposes

The Bill is aimed at addressing concerns over the addictive and immersive design of online money gaming platforms, which policymakers argue can cause severe financial and mental health risks, particularly for young users.

Key provisions include:

• Complete ban on all forms of pay-to-play RMG, including poker, rummy, and fantasy sports.
• A regulatory authority under the Ministry of Electronics and Information Technology to monitor compliance.
• Penalties for operators and intermediaries offering banned games, ranging from hefty fines to criminal liability.
• Measures to promote non-monetised, skill-based gaming and eSports as legitimate forms of digital entertainment.

Government representatives argued during the debate that while gaming technology and eSports have potential as industries, real-money gaming has crossed into predatory territory, often trapping minors and vulnerable players in cycles of debt. The bill also cited research linking excessive RMG participation to issues such as stress, insomnia, and social isolation.

Industry bodies, however, criticised the sweeping nature of the legislation, warning it could wipe out billions in investments and jeopardise thousands of jobs. They argued for a regulatory approach instead of an outright ban.

Nazara’s Position

In a stock exchange filing, Nazara clarified that it has no direct exposure to RMG. Its only link is via its 46.07 percent stake in Moonshine, which owns and operates PokerBaazi. The company reiterated that as per its latest reported financials, the contribution of RMG to its consolidated revenue and EBITDA was nil.

Speaking to CNBC-TV18, Nitish Mittersain, founder and CEO of Nazara Technologies, admitted that a ban would put its ₹805 crore investment into PokerBaazi at risk, but stressed that the firm’s core businesses remain resilient. “Our fundamental platform is strong, and we are exploring other opportunities beyond real-money gaming,” he said.

Market Reaction

Domestic brokerage ICICI Securities downgraded Nazara, cutting its target price from ₹1,500 to ₹1,100 per share. The brokerage assigned a zero valuation to Moonshine, down from ₹400 earlier. However, it maintained that Nazara’s other verticals — gamified early learning, publishing, gaming arcades, and eSports via Nodwin Gaming — remain unaffected.

Analysts also noted that the formal recognition of eSports as a sport in India could be a structural positive for companies like Nazara, even though short-term earnings will likely take a hit from the uncertainty around RMG.