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Key Points

Nazara Technologies is experiencing significant stock market volatility following the passage of the Online Gaming Bill. The legislation threatens the company's real-money gaming segment, particularly its PokerBaazi investment. Despite potential challenges, Nazara's management remains optimistic about their core business and future market opportunities. The stock has already dropped 23% in two days, reflecting investor uncertainty about the new regulatory landscape.

Key Points: Nazara Tech Shares Plunge on Online Gaming Bill Uncertainty

  • Nazara stock loses over 22% in two trading sessions
  • Parliament clears bill potentially banning pay-to-play online games
  • Company holds 46% stake in PokerBaazi
  • Rs 800 crore investment in Moonshine could face write-off
2 min read

Nazara Technologies' shares tank 23 pc in two days over online gaming bill

Nazara Technologies stock drops 23% after parliament passes bill potentially banning pay-to-play online games, impacting real-money gaming segment

"If there is indeed a move to ban online real-money gaming, then that particular investment could be at risk - Nitish Mittersain, Nazara CEO"

Mumbai, Aug 21

Shares of Nazara Technologies Limited, India's only listed online gaming company, continued to slide for the second day in a row on Thursday, tumbling another 11.19 per cent to touch an intra-day low of Rs 1,085 on the Bombay Stock Exchange (BSE).

With this, the stock has lost over 22 per cent in just two trading sessions.

The sharp fall comes after the Lok Sabha and Rajya Sabha cleared the Promotion and Regulation of Online Gaming Bill, 2025, which seeks to ban all pay-to-play online games, whether based on skill or chance.

Nazara Technologies, however, has said the bill will not materially impact its overall financial performance in terms of revenue or EBITDA.

The company clarified that its major businesses -- including gamified early learning, publishing, and gaming arcades -- will remain unaffected.

The company did acknowledge its exposure to the real-money gaming segment through its stake in Moonshine, which operates PokerBaazi.

In a filing, Nazara said that its investment of over Rs 800 crore in PokerBaazi could face a potential write-off if the proposed law goes ahead.

Brokerage house ICICI Securities also cut its rating on Nazara, reducing its target price from Rs 1,500 to Rs 1,100 per share.

The firm said it has now assigned zero value to Moonshine in its calculations, given the regulatory uncertainty.

Nazara's Joint MD and CEO Nitish Mittersain told CNBC-TV18 that the company holds about 46 per cent in PokerBaazi but added that the situation is still speculative.

"If there is indeed a move to ban online real-money gaming, then that particular investment could be at risk," he said.

He added that it was too early to estimate the size of any write-off but noted that the business's core platform remained strong and could create opportunities in other markets.

- IANS

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Reader Comments

P
Priya S
While I understand the concerns about real-money gaming addiction, banning skill-based games like poker seems extreme. Many legitimate businesses and jobs will be affected. Hope there's some reconsideration.
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Aditya G
Good move by government! Real money gaming was becoming a social menace. Many families have been ruined by gambling addiction. Nazara should focus on their educational gaming segment - that's the future anyway. 👍
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Sarah B
As someone who invested in Nazara during IPO, this is painful to watch. The management should have diversified risk better instead of putting 800cr in one risky segment. Lesson learned the hard way.
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Karthik V
The silver lining is that their core business remains strong. Gamified learning and publishing have huge potential in Indian market. This might actually force them to focus on more sustainable revenue streams.
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Michael C
Interesting how ICICI Securities immediately assigned zero value to Moonshine. Shows how quickly analysts react to regulatory risks in India. Other brokerages will likely follow suit. Tough times ahead for gaming sector.

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