Centre Proposes Draft Bill to Regulate Online Gaming; Nazara, Delta Corp Shares React

Shares of leading online gaming firms in India dropped sharply on Wednesday, following news that the Union Cabinet approved a draft bill to prohibit pay-to-play online games.

Bill Targets Entire Real-Money Gaming Sector

The newly drafted Promotion and Regulation of Online Gaming Bill 2025 received Cabinet approval and is scheduled for introduction in the Lok Sabha. The legislation proposes a blanket ban on pay-to-play online games—including both games of skill and games of chance. If passed, the law would effectively suspend operations of real-money gaming (RMG) platforms nationwide, raising concern among industry stakeholders.

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Stock Market Reaction

Investor sentiment reacted swiftly as Nazara Technologies share price fell approximately 7.5%, trading at ₹1,294.40. Meanwhile, Delta Corp stock price dropped as of now by around 2.17%, with its stock priced at ₹94.9.

Nazara Clarifies Business Exposure

In an official filing to the stock exchanges, Nazara Technologies stated that it has no direct exposure to RMG operations. Its only indirect stake in the sector stems from a 46.07% interest in Moonshine Technologies, the operator of PokerBaazi. The company emphasised that, based on its latest reported financials, RMG contributes nil revenue and EBITDA to its overall business.

Previously, in September 2024, Nazara had acquired a 47.7% interest in Moonshine Technology for approximately ₹832 crore—a move that now faces significant regulatory risk.

Industry Concerns

Analysts are quickly assessing the fallout. In a conversation with CNBC-TV18, an expert warned that the proposed ban could pose a serious setback to the RMG space. He estimated that if RMG operations are halted, 25% to 30% of Nazara’s valuation might be wiped out.

Conclusion

There has been a significant sell-off in related equities after the Union Cabinet approved a broad ban on online money-gaming. Despite Nazara Technologies' promises of its little involvement in the RMG industry, both the company and Delta Corp are facing criticism. A sector already struggling with regulatory scrutiny faces a danger from the legislation that is now being developed.