Nazara Technologies Limited (NSE: NAZARA) announced a significant development in its gaming portfolio following the recent passage of the Promotion and Regulation of Online Gaming Bill, 2025 by the Indian Parliament. The company's associate, Moonshine Technologies Private Limited, operating under the brand name Pokerbaazi, has suspended its real money online gaming operations in response to the new legislation.

Key Developments

• Moonshine Technologies (Pokerbaazi), in which Nazara holds a 46.07% stake, has ceased real money online gaming operations.
• The decision comes in the wake of the Promotion and Regulation of Online Gaming Bill, 2025, which prohibits all forms of online money gaming.
• Nazara Technologies' shares experienced a sharp decline, falling 3.75% to ₹1,160.00 and marking a 16.50% drop over five trading sessions.

Legislative Impact

The newly passed bill introduces stringent measures for the online gaming industry:

• Bans all forms of online money gaming
• Prohibits advertisements related to such games
• Blocks financial institutions from facilitating transactions for online money gaming
• Imposes penalties of up to three years imprisonment or fines up to ₹1.00 crore for violations

Company's Response

In an official disclosure to the stock exchanges dated August 22, 2025, Nazara Technologies stated:

"As a matter of abundant caution and in due respect of the Government's mandate, Moonshine Technologies Private Limited ("Moonshine/Pokerbaazi"), an associate company in which Nazara Technologies Limited holds a 46.07% stake, has ceased offering real money online gaming operations."

The company further added that it "will evaluate the future course of action following the enactment of the Bill."

Industry Implications

The new legislation has sent ripples through the online gaming industry in India. Gaming companies are expected to seek clarity from the Centre on key provisions of the bill. The move is likely to have far-reaching consequences for the burgeoning online gaming sector in the country.

Market Reaction

The news has had a significant impact on Nazara Technologies' stock performance:

This marks the stock's worst week since its listing.

As the industry grapples with the implications of the new bill, investors and stakeholders will be closely watching how companies like Nazara Technologies adapt to the changing regulatory landscape. The company's future strategies and potential pivots in its gaming portfolio will be crucial in navigating this new era of online gaming regulation in India.

Nazara Technologies , a leading player in the Indian gaming industry, has seen a significant change in its shareholding pattern as Rekha Jhunjhunwala, a prominent investor, sold her entire 7.06% stake in the company.

Transaction Details

• Jhunjhunwala disposed of 61.8 lakh shares
• The shares were sold at approximately Rs 1,225.00 per share
• The total transaction value was nearly Rs 334.00 crore

Other Major Investors

• Madhusudan Kela continues to hold a 1.18% stake
• Nikhil Kamath maintains a 1.62% stake

Market Response

ICICI Securities has downgraded Nazara Technologies to 'reduce' with a revised target price of Rs 1,100.00, down from the previous Rs 1,500.00. This downgrade is primarily due to regulatory concerns surrounding Nazara's exposure to Moonshine Technology (PokerBaazi).

Nazara's Clarification

In response to market concerns, Nazara Technologies has issued a statement clarifying its position:

1. The company has no direct exposure to real money gaming (RMG) businesses.
2. Moonshine Technology's revenue is not consolidated into Nazara's financial statements.
3. There is no contribution to Nazara's quarterly revenues from Moonshine Technology.

Regulatory Impact

The exit of Rekha Jhunjhunwala and the subsequent market reaction highlight the growing regulatory challenges in the Indian online gaming sector. The government's stance on online gaming, particularly real money gaming, has created uncertainty for companies operating in this space.

Conclusion

As the regulatory landscape continues to evolve, companies like Nazara Technologies will need to navigate carefully, potentially reassessing their investment strategies in the gaming sector and managing the financial implications of their existing investments.