Summary of this article
The Union Cabinet has approved the new draft online gaming bill.
Shares of Nazara Technologies, Delta Corp, Zensar Tech declined as much as 10 per cent on the NSE.
Shares of Nazara Technologies continued to decline despite the company issuing a clarification.
Shares of online gaming companies declined in trade on August 20 as the Union Cabinet green lit the new draft online gaming bill. Additionally the Promotion and Regulation of Online Gaming Bill 2025 is also likely to be introduced in the Lok Sabha today. Shares of online gaming companies such as Nazara Technologies, Delta Corp, Zensar Tech declined as much as 10 per cent on the NSE.
Why Are Online Gaming Stocks Declining
Nazara Technologies shares fell over 10 per cent to an intraday low of Rs 1256.7 apiece on the NSE. Shares of Zensar Technologies declined over 1 per cent to Rs 790.2 apiece on the NSE, shares of Delta Corp also declined nearly 7 per cent to an intraday low of Rs 86.61 apiece. Shares of OnMobile fell nearly 5 per cent to an intraday low of Rs 52.5 apiece on the NSE.
The stocks fell following the approval of the bill by the Union Cabinet as it seeks to ban all pay-to-play online games. The government plans to implement the ban irrespective of the classification of the game as a game of skill or a game of chance. Games of chance refer to games where the final outcome of the play is determined by randomness or unpredictable factors. On the other hand, games of skill rely on the player’s ability to fulfill the conditions required to win based on their skill or strategically made choices.
The move becomes significant as the government seeks to ban all ‘Real Money Games’ (RMG). These games involve the use of actual money and often reward players monetarily too. The bill also seeks to ban all advertisements and bar banks and financial institutions from processing related transactions. related to such games and also dictates penalties and fines for individuals or platforms which promote such games. The bill also marks a major shift from the previous stance taken by the government wherein the Centre seeks to curb financial and societal risks linked with real-money gaming platforms.
The online gaming industry has grown in popularity in India and has an estimated valuation of $3.7 billion with a projection to double to $9.1 billion by 2029 according to a joint report by WinZO Games and the Interactive Entertainment and Innovation Council (IEIC). Additionally 86 per cent of the online gaming industry’s revenue comes from real-money formats. Thus the bill is expected to significantly impact the online gaming industry.
Notably shares of Nazara Tech extended their decline despite the company issuing a clarification and citing ‘no direct exposure’ to RMG focused verticals. The company said that as per its latest financial results the company received no contribution from RMG focused verticals in its EBITDA and revenues.
“Nazara has no direct exposure to real money gaming (RMG) businesses. As per its latest reported financials (Q1-26), the contribution to Revenues and EBITDA by RMG business is NIL,” Nazara said in a release.
Nazara further disclosed that it has exposure to RMG through its stake in Moonshine Technologies Private Limited (PokerBaazi). However since the company is a minor stakeholder in Pokerbaazi the revenue generated via the vertical is not consolidated in Nazara’s consolidated revenue.
“The Company’s only indirect exposure to RMG is through its 46.07 per cent stake in Moonshine," Nazara said.
Technologies Private Limited (PokerBaazi). As Nazara does not hold a majority stake or exercise control, Moonshine’s revenue is not consolidated in the Company’s financial statements and has no impact on the Company’s reported Revenue or EBITDA,” Nazara said.
At the time of writing shares of Nazara Technologies Ltd traded at Rs 1,258.2 apiece down by 10.11 per cent on the NSE. Shares of Zensar Technologies Ltd traded at Rs 815.25 up by 1.58 per cent. Shares of Delta Corp and OnMobile Global Ltd also traded lower by 0.3 per cent and 3.69 per cent respectively.
