India’s gaming industry has been one of the fastest growing parts of the digital economy. From casual esports and fantasy leagues to serious money-based poker and rummy platforms, the space has seen an explosion of users and investor interest. But a new bill may change that story.
The Union Cabinet has cleared the Promotion and Regulation of Online Gaming Bill, 2025, which will ban all pay-to-play games, whether based on skill or chance. The bill is now set to be tabled in Parliament.
For Nazara Technologies, India’s only listed gaming company, the timing is tough. Its Rs 805 crore exposure to PokerBaazi (via Moonshine Technologies) is now under the scanner.
Why Nazara’s stake in PokerBaazi matters
Nazara has built its brand around casual and kid-friendly games like Kiddopia, World Cricket Championship and Sportskeeda, plus offline formats like Funky Monkeys and Smaash Entertainment.
But in September 2024, it made a bold move into real-money gaming by acquiring a 47.7% stake in Moonshine Technologies, the parent of PokerBaazi, for around ₹832 crore. Today, Nazara holds 46.07% stake, valued at Rs 805 crore, with an additional ₹255 crore committed through convertible preference shares.
Here’s a quick snapshot:
| Particulars | Value / % |
| Initial investment in Moonshine (Sep 2024) | Rs 832 crore |
| Current stake | 46.07% |
| Current valuation | Rs 805 crore |
| Additional commitment (CCPS) | Rs 255 crore |
This investment was seen as Nazara’s entry into the big league of gaming, but the new bill now questions the future of PokerBaazi itself.
Market reaction to the bill
The market was quick to respond. Nazara’s shares fell nearly 7%, touching an intraday low of Rs 1,302.4 before settling around Rs 1,307.6 on 20 August. The decline followed the Cabinet’s clearance of the bill.
Brokerage Prabhudas Lilladher highlighted that PokerBaazi contributes around 35% of Nazara’s valuation model. It retained a target price of Rs 1,345, but warned that in a worst-case scenario — if PokerBaazi is forced to shut — Nazara’s fair value could drop to Rs 917, implying a 30% downside.
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Nazara’s clarification to investors
Nazara has tried to calm investors. In an exchange filing, the company stated:
- It has no direct exposure to real-money gaming.
- RMG contributed zero to revenues in Q1 FY26.
- Since Nazara does not control Moonshine, PokerBaazi’s numbers are not consolidated into Nazara’s financial statements.
In short, the company argues that its reported revenue and Ebitda will remain unaffected, even if the bill passes.
What the bill means for the industry?
The draft legislation takes a hard stance:
- Bans all real-money gaming formats such as fantasy sports, digital rummy and online poker.
- Prohibits transfer of funds through banks and financial institutions for these platforms.
- Restricts advertising of real-money games, while promoting e-sports and casual formats.
The government cites risks of addiction and mental health concerns among youth as justification. Industry groups argue that a blanket ban could:
- Wipe out nearly Rs 20,000 crore in annual taxes.
- Push millions of users towards offshore platforms without consumer protection.
- Threaten over 2 lakh jobs directly and indirectly linked to the gaming ecosystem.
Wider industry lens
It’s not just Nazara in focus. Delta Corp, India’s only listed casino operator, also saw investor attention as the bill covers online betting too.
India’s digital gaming market is massive:
- Over 50 crore gamers in 2024 (up from 36 crore in 2020).
- Rs 31,000 crore in revenue.
- Rs 25,000+ crore FDI inflows by 2022.
- Sector projected to grow at 20% CAGR, potentially doubling by 2028.
Brokerage notes suggest PokerBaazi might have reached profitability only by FY27, so any regulatory disruption now could delay or derail those targets.
Also read: SEBI Registered Investment Advisor
Conclusion
For investors tracking Nazara share price, the stakes couldn’t be higher. On paper, Nazara insists its financials won’t change — since PokerBaazi’s results aren’t consolidated. But analysts are clear: the Rs 805 crore exposure is real, and the value could evaporate if the bill goes through.
The bigger question is whether India can balance consumer protection with nurturing a booming digital gaming economy. For now, investors in Nazara must brace for volatility — and possibly, a long wait for clarity.
