NEW DELHI: Shares of Indian gaming platform companies such as Nazara Tech, OnMobile Global and Delta Corp declined by up to 8% in the early trading hours on Wednesday after the Union Cabinet approved the Online Gaming Bill, 2025. The bill proposes strict rules and regulations for money-based online games and makes online betting a punishable offence.
While Delta Corp trimmed morning losses and gained about 3%, Nazara Tech continued to face selling pressure and hit an intraday low of Rs 1,289 (down 8%) even as it issued a clarification stating that the company said that it has no direct exposure to real money gaming (RMG) businesses.
The Online Gaming Bill seeks to prevent individuals and organizations from providing online money-based games or associated services within India. It further aims to prohibit advertisements that promote such games and to curb financial transactions connected to these platforms. Financial institutions, including banks, may also be restricted from processing payments for them.
If enacted, the Online Gaming Bill, 2025 would mark a substantial regulatory shift in India’s online gaming ecosystem, particularly affecting platforms that offer real-money gameplay.
Adarsh Somani, Partner, Economic Laws Practice said that the government’s move to tighten rules for money-based games under the proposed Online Gaming Bill reflects a growing recognition of the risks associated with real-money play, ranging from addiction and financial losses to concerns of consumer protection and illegal betting.
“While regulatory clarity is welcome, the key will be striking the right balance between safeguarding users and fostering innovation in the rapidly growing gaming sector. Overly restrictive measures may stifle investment, whereas well-calibrated rules can help establish India as a responsible global hub for online gaming,” added Somani.
Nazara Tech in its clarification stated that since it does not hold a majority stake or exercise control, Moonshine’s revenue is not consolidated in Nazara’s financial statements and has no impact on reported revenue or Ebitda. As per its latest reported financials (Q1-26), the contribution to revenue and EBITDA by RMG business is NIL. The company added that its only indirect exposure to RMG is through its 46.07% stake in Moonshine Technologies (PokerBaazi).
Brokerage firm Prabhudas Lilladher (PL) has raised concerns over Nazara's investment in PokerBaazi as the latter accounts for about 35% of its valuation. PL cautions that if real-money gaming is banned, this investment could be at risk of being written off.
PL maintained a target price of Rs 1,345, but cautioned that if the bill passes and PokerBaazi is forced to shut operations, the fair value for Nazata Tech could fall to Rs 917.
At present Nazara holds about 48% in Moonshine, with Rs 805 crore already invested and another Rs 255 crore committed via compulsorily convertible preference shares. The company had acquired a 47.7% stake in Moonshine in September 2024 for roughly Rs 832 crore.