Nazara Tech shares tank almost 14% in 2 days as Parliament passes bill to ban online money games

Shares of Nazara Technologies fell almost 14% in two trading sessions to Thursday, even as the company said it has no direct exposure to real money gaming (RMG) businesses.

On Thursday, the stock of Nazara Technologies tanked 11.18% to ₹1,085 in intra-day trade on the BSE. However, later the stock recovered most of the early lost ground and ended at ₹1,205.60, down 1.31%. Shares of Nazara Technologies had tumbled nearly 13% on Wednesday. In two days, the company's stock lost 13.96%.

Meanwhile, shares of gaming and hospitality company Delta Corp dropped 2.79% to end at ₹91.21 on Thursday.

Parliament passed a bill to ban all forms of online money games and promote eSports and online social gaming, with the Rajya Sabha approving it without debate amid din.

Piloting The Promotion and Regulation of Online Gaming Bill, 2025 in the Upper House, Minister of Electronics and IT Ashwini Vaishnaw said the legislation will promote two-thirds of the online gaming segment.

The bill, he said, will ban online money games, which have become a big problem for society, especially middle-class youth.

"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 (earnings before interest, taxes, depreciation and amortisation) by RMG business is NIL," the company said in a filing to the BSE on Wednesday. The company's only indirect exposure to RMG is through its 46.07% stake in Moonshine Technologies Private Limited (PokerBaazi), it said.

"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. The contribution to PAT by Moonshine as a share of profit & loss by associate is negative in Q1-26," according to the filing.

Accordingly, the company does not anticipate any material adverse impact on its operating financial performance (revenue or EBITDA) in relation to such media reports, the filing had added.

"Nazara Technologies saw a steep crash with heavy volumes, while Delta Corp also witnessed a sharp move. The immediate worry is their exposure to real-money gaming, but both companies also derive revenues from non-money segments such as eSports, content, and offline operations. This diversification could help them stage a comeback over time once the market digests the regulatory impact," Hariprasad K, Research Analyst and Founder of Livelong Wealth, said.