Nazara Technologies shares dropped 11% to 1,085 rupees (US$13) on August 21, 2025, extending a two-day drop to 23% after India’s Lok Sabha passed the Online Gaming Bill, which bans all online games involving money.

Nazara Technologies, based in Mumbai, has investments in Moonshine Technology, the operator of PokerBaazi.

The bill also bars banks and fintech firms from processing payments related to real-money gaming.

After the announcement, ICICI Securities lowered its rating on Nazara to “reduce” and cut its target price to 1,100 rupees (US$13.17) from 1,500 rupees (US$17.96), citing a drop in the valuation of Moonshine due to the ban.

Nazara said real-money gaming did not contribute to its Q1 FY26 revenue and Moonshine’s results are not consolidated in its financial statements.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ Regulatory bans often drive gaming activity offshore rather than eliminate it

India’s sweeping ban on real money gaming follows a familiar pattern seen in other markets where prohibition doesn’t eliminate demand but redirects it to unregulated channels.

In Canada, restrictive gaming laws have led to Canadians wagering approximately C$4 billion annually with offshore sportsbooks compared to only C$500 million through regulated provincial options2.

This 8-to-1 ratio demonstrates how regulatory restrictions can inadvertently strengthen offshore operators while weakening domestic tax revenue and consumer protections.

The Indian bill’s broad definition covering both skill-based and chance-based games could create similar displacement effects, particularly given that nearly 86% of current gaming sector revenue comes from real-money games3.

The legislation’s ban on payment processing by banks and fintech companies may temporarily disrupt operations, but history suggests determined players often find alternative funding methods through third-party services.

2️⃣ Gaming industry consolidation accelerates during regulatory upheaval

The proposed ban threatens to eliminate over 20,000 jobs and shut down more than 300 companies in India’s $3.7 billion gaming market43.

This massive industry contraction will likely benefit the few companies with diversified revenue streams that don’t rely heavily on real money gaming.

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