Nazara Tech Shares Slide 23% in Two Days as Online Gaming Bill Weighs

Shares of Nazara Technologies deepened their rout on August 21, tumbling another 11% to, taking its two-day losses to nearly 23%. The sell-off came after the Lok Sabha cleared the Promotion and Regulation of Online Gaming Bill, 2025, which proposes a ban on all money-based digital games.

The bill seeks to criminalise digital betting, prohibit monetary transactions for real-money gaming (RMG), and restrict banks and fintech companies from processing such payments. Government officials have defended the move, stating that the addictive design of such platforms and the associated mental health risks for young players.

Nazara, India’s only listed gaming company, has indirect exposure to the RMG segment through its 46.07% stake in Moonshine Technology, the parent of PokerBaazi. In a statement to ease investor nerves, the company clarified that real-money gaming contributed nothing to its reported revenues or Ebitda in the first quarter of FY26. “Accordingly, the company does not anticipate any material adverse impact on its operating financial performance,” Nazara said. The firm added that since it does not hold a majority stake or exercise control in Moonshine, its revenue is not consolidated in Nazara’s financial statements and has no impact on reported revenue or Ebitda.

However, the clarification did little to calm investors down, more so due to Nazara’s sizeable investment in the RMG company. Nazara invested ₹805 crore via equity and another ₹255 crore in compulsory convertible shares into Moonshine.

Speaking to CNBC-TV18, founder and chief executive Nitish Mittersain acknowledged that the investment could be at risk if the bill is passed in its current form. “The core platform remains strong, and other opportunities can be explored,” he said.

Responding to the development, brokerages have also struck a cautious tone. ICICI Securities downgraded its rating on Nazara from ‘buy’ to ‘reduce’, slashing its target price to ₹1,100 from ₹1,500. “We had earlier assigned a ₹400 valuation to Moonshine in our SoTP, but with the ban on RMG, we now cut this to zero,” said analyst Abhisek Banerjee. The brokerage, however, noted that Nazara’s other businesses, including gamified early learning, publishing, and eSports remain unaffected.

Nazara operates a diverse portfolio of gaming and media platforms, with popular titles such as World Cricket Championship and Kiddopia, and a presence across India, Africa, and North America. While its exposure to real-money gaming is indirect, the regulatory uncertainty has clearly unsettled investors, with sentiment likely to remain cautious in the near term.