Nazara Technologies Stock Plunges 23% in Two Days After Real-Money Gaming Ban

Nazara Technologies Ltd, India’s only publicly listed gaming and sports media company, has suffered a steep sell-off following the government’s blanket ban on real-money gaming (RMG).

On August 20, when the bill was first announced, the stock fell 13%. The slide continued after the Lok Sabha passed the Promotion and Regulation of Online Gaming Bill 2025 on August 21, tumbling another 11.19% to a low of ₹1,085 on the Bombay Stock Exchange (BSE) — its sharpest single-day drop since May 2024.

Investor Reaction to the RMG Ban

The legislation bans all real-money games in India, covering both skill-based and chance-based formats. It has rattled investors, raising concerns about the sector’s long-term growth prospects.

Nazara has clarified that it has no direct exposure to RMG. However, the company owns a 46.07% stake in Moonshine Technologies — parent of PokerBaazi, one of India’s largest real-money gaming platforms. As Nazara lacks majority control, Moonshine’s revenues aren’t consolidated into its accounts, but the indirect link has still spooked the market.

Analyst Downgrades and Valuation Hit

In response, ICICI Securities downgraded Nazara from “add” to “reduce”, slashing its price target from ₹1,500 to ₹1,100. Several brokerages have gone further, marking Moonshine’s valuation at zero due to regulatory uncertainty.

This correction has erased more than half of Nazara’s year-to-date gains, reversing the bullish momentum seen earlier in 2025.

Wider Market Impact

Nazara was not alone in facing pressure. Gaming-linked peers such as Delta Corp (Adda52) and OnMobile Global also saw volatility. While Delta Corp ended marginally higher, the overall sentiment for gaming stocks remained weak.