Nazara Technologies, Delta Corp Shares Drop 5% on Government’s Online Money Gaming Bill

Market Performance

Shares of leading online gaming companies saw a sharp decline on Wednesday, August 20, following news of a new government bill targeting online money gaming.

• Nazara Technologies: ₹1,330.8, down 5%
• Delta Corp: ₹89.20, down 4%

The decline reflects investor caution as the draft online gaming legislation progresses toward introduction in the Lok Sabha.

Main News

The Promotion and Regulation of Online Gaming Bill 2025, recently approved by the Union Cabinet, aims to prohibit all pay-to-play online games, covering both games of skill and chance.

If passed, the legislation could temporarily halt operations of regulated real-money gaming (RMG) platforms across India. The government cited social risks, including the potential for mental health issues among young players, linked to the addictive nature of online money gaming.

Company Details

Nazara Technologies

• Nazara holds a 46.07% stake in Moonshine Technology, which operates PokerBaazi, one of India’s leading poker platforms.
• Nazara stated that it has no direct exposure to real-money gaming.
• Contribution from RMG to Nazara’s revenue and EBITDA: NIL
• Investment in Moonshine: ₹832 crore in September 2024 for a 47.7% stake

Delta Corp

• Delta Corp, another key player in the online gaming segment, also experienced a decline following the bill’s approval.
• Share price dropped by 4% to ₹89.20 during morning trade.

Summary

The government’s draft online gaming bill has created turbulence in the stock market, particularly affecting companies with exposure to real-money gaming.

• Nazara Technologies shares fell 5%, and Delta Corp dropped 4%.
• The draft bill will be introduced in the Lok Sabha today.
• Industry stakeholders are concerned about potential impacts on operations and revenue for RMG platforms.

Investors and market observers are carefully tracking the progress of the online gaming legislation through Parliament.