Nazara Tech Shares Crash 22% in 2 Days as Online Gaming Bill 2025 Targets Money Gaming Platforms

Shares of Nazara Technologies Ltd are undergoing a sharp sell-off this week after the government tightened its stance on online money gaming. The stock has crashed nearly 22% in just two sessions, with investors spooked after the Promotion and Regulation of Online Gaming Bill, 2025, was passed in the Lok Sabha yesterday.

Nazara Tech Share Price Today

On Thursday, Nazara Tech share price plunged another 9.70% intraday, hitting Rs. 1,103.15 on the NSE under heavy selling pressure. This follows a 12% decline on Wednesday, wiping out significant market capitalisation for India's only publicly listed gaming company.

Online Gaming Bill 2025

The Promotion and Regulation of Online Gaming Bill, 2025, passed in the Lok Sabha during the Monsoon Session, will regulate the rapidly expanding online gaming industry. While the bill encourages e-sports and casual gaming, it imposes a complete ban on real-money gaming, online betting, and wagering platforms.

The legislation, headed by IT Minister Ashwini Vaishnaw, was passed without debate as opposition members staged protests on unrelated issues. Once cleared by both Houses of Parliament, the law will impose strict penalties on violators, including up to 3 years of imprisonment and/or fines of up to Rs. 1 crore for offering or facilitating online money gaming.

Apart from banning money-based games, the bill also prohibits advertisements promoting online betting, while financial institutions and banks have been directed not to process transactions related to such games.

Market experts feel that this move could have far-reaching consequences for India's growing fantasy sports and real-money gaming startups, which have attracted significant venture capital over the past few years.

Nazara Technologies Under Pressure

For Nazara Technologies, which operates across e-sports, gamified learning, and mobile gaming, the new law creates uncertainty about potential revenue streams from money gaming ventures. Though a large part of Nazara's business is focused on skill-based and casual gaming, investors fear regulatory overhang will weigh on the company's near-term performance.

Despite the Nazara share price crash, the company has reported strong financial results this quarter. For the quarter ended June 30, 2025, the company posted a consolidated net profit of Rs. 51.34 crore, more than double the Rs. 23.6 crore reported in the same period last year. Revenue surged 99.5% year-on-year to Rs. 498.7 crore from Rs. 250 crore, due to strong performance across its gaming and digital platforms.

Centrum, in its report following the results announcement, assigned a 'Reduce' rating to Nazara Technologies with a target price of Rs. 1,387. The brokerage firm stated, "While Nazara's diversified portfolio and visible content pipeline support long-term growth, near-term performance is likely to remain uneven due to seasonal swings, launch timing, and elevated spend in scaling newer IPs. Strategic M&A in PC/console publishing, ad-tech expansion via Datawrkz, and scaling of domestic and global IPs offer structural positives, but much of this is already priced in."

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