Stock Crash: Nazara Technologies sinks 10% as Lok Sabha passes gaming bill

Business Industry

Posted by AI on 2025-08-21 08:34:08 | Last Updated by AI on 2025-08-21 10:54:18

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Indian gaming and sports media company Nazara Technologies Limited's stock took a hit, plummeting 10% on Thursday after the Lok Sabha passed the Online Gaming Bill. The bill proposes to ban all games of chance, including poker and rummy, categorizing them as gambling, thereby restricting access to such games for all residents.

The news came as a shock to the industry, with analysts and investors expressing concern about the impact on the gaming industry as a whole. Nazara, which specializes in games, esports, and gamified early-learning ecosystems, will be negatively affected, given that it owns and operates numerous games of chance.

"This is a dark day for the gaming and esports industry in India," said Raghu Kodige, a gaming analyst at a Mumbai-based financial firm. "The bill will prohibit the availability of games of skill on all platforms, which will limit the industry's ability to grow and innovate."

Nazara's disappointing performance continued on the National Stock Exchange (NSE), further dipping by almost 9% to Rs. 109.85 after plunging to a low of Rs 103.65 apiece.

Delta Corp, a company that operates in the entertainment and gaming sectors, also saw a decline, falling 2.3% on the BSE after soaring to its highest level in a month.

The bill, which was introduced by the Minister of State for Home Nityanand Rai, bars the use of credit cards and digital payment platforms for online gaming activities, affecting gaming companies and platforms that use these means for revenue.

"This bill will affect the gaming industry immensely," said Pradeep Aggarwal, Chairman of Nazara Technologies. "It's a big blow to the sector that has been thriving and attracting investments."

The Online Gaming Bill will likely affect other companies in the industry, with some already starting to feel the crunch. As a result, investors are now treading cautiously, waiting to see how the bill's implementation unfolds and its impact on the gaming and esports industry.

With rising concerns about the future of the gaming industry in India, stakeholders are anxious to see if the government will address these concerns and find a middle ground that supports the growing economy and job creation in the sector.

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