Stock Hits 15-Week Low
On August 21, 2025, Nazara Technologies’ shares plunged nearly 8% in early trading on the NSE, slipping to ₹1,125. This marked the lowest price level in 15 weeks. The drop followed a 13% decline in the previous session, highlighting the market’s nervousness around the gaming ban.
In contrast, other gaming-linked firms like Delta Corp managed to recover some intraday losses, closing with small gains. However, investor sentiment around the gaming sector remains fragile.
The Online Gaming Bill 2025
The proposed law prohibits all forms of real-money gaming (RMG), including skill-based and chance-based games. If enforced, the legislation would pause operations of regulated RMG platforms across India.
Government officials defended the bill, citing concerns about mental health risks and the addictive design of online money games. According to parliamentary discussions, the aim is to curb excessive gaming among young players and protect families from financial harm.
Impact on Nazara’s Investments
Nazara has clarified in a stock exchange filing that it does not operate direct RMG businesses. However, it holds a 46.07% stake in Moonshine, which owns and runs PokerBaazi. This indirect exposure has now become a significant risk.
Nitish Mittersain, the founder and CEO of Nazara Technologies, told CNBC-TV18 that the company’s ₹805 crore investment in PokerBaazi could be at risk if the ban is enforced. He added that the company’s core business remains strong and that alternative growth opportunities will be explored.
Brokerages Cut Target Price
Brokerage houses reacted quickly to the news. ICICI Securities downgraded Nazara, reducing its price target from ₹1,500 to ₹1,100. The firm previously valued Moonshine at ₹400 in Nazara’s overall valuation. However, due to the ban threat, the valuation has been cut to zero.
Despite the setback, analysts noted that Nazara’s other verticals such as early learning, publishing, and gaming arcades remain unaffected. In fact, the recognition of eSports as a sport could benefit its Nodwin Gaming subsidiary in the long term.
Industry Reaction and Concerns
The gaming industry has expressed disappointment. Many stakeholders argue that a blanket ban could stifle innovation, hurt employment, and drive players toward unregulated offshore platforms. Experts suggest that regulation, rather than prohibition, may be a more balanced approach.
According to a Press Information Bureau (PIB) report, the government remains firm on its stance due to social concerns. However, the industry is expected to lobby for amendments that allow regulated RMG operations under strict compliance rules.
What Lies Ahead for Nazara?
While Nazara Technologies faces short-term volatility, its diversified portfolio may soften the blow. Growth in eSports, casual gaming, and educational platforms could provide stability if the RMG ban persists.
For investors, the road ahead depends on how the bill progresses in the Rajya Sabha and whether amendments are introduced. Until then, uncertainty will continue to weigh heavily on the stock.
Key Takeaways
- Nazara shares crashed 8% after Lok Sabha passed the Online Gaming Bill 2025.
- The bill bans all pay-to-play games, impacting regulated RMG platforms.
- Nazara’s ₹805 crore investment in PokerBaazi faces risk.
- ICICI Securities cut its target price from ₹1,500 to ₹1,100.
- Other verticals like eSports and early learning remain unaffected.
Conclusion
The Online Gaming Bill 2025 has shaken India’s gaming sector, leaving Nazara Technologies at a crossroads. The stock’s steep fall reflects market uncertainty, but the company’s diversified businesses may provide a cushion. For investors and gamers alike, the coming weeks will be crucial in determining the future of India’s online gaming industry.
