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1h ago

Nazara Shares Extend Slide After Parliament Clears Bill to Ban Pay-to-Play Gaming

Broker downgrades focus on a potential PokerBaazi write-off despite Nazara's claim of limited impact.

Nazara Technologies CEO Nitish Mittersain. India's first listed gaming firm has 46.1% stake in Moonshine Technologies, which operates PokerBaazi.
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Overview

  • Shares fell about 5% on Friday to Rs 1,145.55, taking the three-day decline to roughly 18% as investors priced in regulatory risk and uncertainty.
  • Both houses of Parliament cleared the Promotion and Regulation of Online Gaming Bill, 2025, which seeks to ban all pay-to-play online games regardless of skill classification.
  • Nazara said the legislation should not materially affect its revenue or EBITDA and that its major businesses in gamified learning, publishing, e-sports, and gaming arcades remain unaffected.
  • The company holds roughly 46% in Moonshine Technologies (PokerBaazi) and disclosed that its investment of over Rs 800 crore could face a write-off if the ban is enforced, with the CEO saying it is too early to size any charge.
  • ICICI Securities cut its Moonshine valuation to zero and downgraded Nazara, while JM Financial estimated about a 20% valuation hit tied to PokerBaazi and maintained a Hold rating.