Nazara Technologies' share down by more than 6% after online gaming ban bill

20^th August 2025: Shares of companies having exposure to online gaming are down today. This after the government approved a bill banning all forms of money based online gaming. The bill prohibits money based gaming even in case of skill-based online games. At 12:10 p.m. 20^th August, Nazara Technologies shares is down by 6.73%, trading at Rs 1,305.50. Shares of OnMobile is down by 2.75% at Rs 53.70. Nifty 50 index is up by 0.25% at this time.

 The Union Cabinet has approved the Promotion and Regulation of Online Gaming Bill, 2025. The bill proposes a complete ban on online money gaming. The Bill will be tabled in Parliament this week by Union Minister of Electronics and IT, Ashwini Vaishnaw.

If passed by Parliament, the bill will prohibit all forms of money-based online gaming, whether driven by skill, chance, or both, while also banning advertisements and blocking banks and financial institutions from facilitating related transactions. Under the proposed law, individuals or companies offering such games could face penalties of up to three years’ imprisonment and fines.

Effects on the Industry

The move is a huge setback to India’s ₹27,438 crore online gaming industry, and it leaves companies such as Dream11, MPL, Games24x7, Winzo, Zupee, and Nazara Technologies all up against the wall. The sector faces job losses and the potential financial impact on ₹25,896 crore of foreign investment. Some experts argued the bill is unconstitutional, claiming that “betting and gambling” falls under the state’s jurisdiction as per the Constitution of India.

Emphasis on Cybercrime and Financial Threats

The government has cited risks of cybercrime, money laundering, and terror financing through digital wallets and cryptocurrencies as key reasons for the ban. While acknowledging that the move could trigger job losses in the gaming sector, officials stressed that protecting citizens from long-term exploitation outweighs the short-term employment impact.

Benefits to E-Sports and Social Gaming

On the other hand, the government will positively promote e-sports and social gaming, all defined as non-monetary, skill-based, and entertainment-type games. The Bill aims to encourage the development of indigenous gaming technologies, AI, and AR/VR, to make India an international gaming destination.

The Bill is designed to create a distinction between money gaming that is gambling-led versus legitimate gaming formats while protecting citizens and growing innovation in the AVGC sector.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source : NSE/ BSE