India’s gaming sector, a booming $3.8 billion industry, has just hit a major roadblock. Parliament has cleared the Promotion and Regulation of Online Gaming Bill, 2025, a sweeping law that prohibits the promotion and operation of online money gaming apps. The bill, aimed at curbing betting and gambling, now threatens the survival of hundreds of companies and nearly 200,000 jobs supported by the industry.
While industry associations have warned Prime Minister Narendra Modi that the move could benefit offshore operators instead of protecting Indian players, the government seems determined to clamp down on real-money gaming. In this article, we will look into how Nazara Technologies is navigating the looming ban on online real-money gaming, the impact on its PokerBaazi investment, and what this means for the future of India’s gaming industry.
Credits: Hindusta Times
Nazara’s $122 Million Poker Bet at Risk
Caught in the crossfire is Nazara Technologies Ltd., India’s only listed gaming company. The Mumbai-based firm, led by CEO Nitish Mittersain, owns a 46.1% stake in Moonshine Technologies Pvt. Ltd., the company behind popular poker platform PokerBaazi.
Nazara’s $122 million investment in Moonshine may now be written down or provisioned for, Mittersain told Bloomberg over a phone call. The company’s shares tumbled by as much as 11% in early trading before trimming losses to 1.4%, extending a two-day slide.
“It’s still early days, and I’ll have to sit with my auditors, but we tend to be conservative in our accounting,” Mittersain said, hinting at a cautious approach in the wake of the new regulation.
Why Nazara’s Core Business Is Safe
Despite the looming write-down, Mittersain insists that Nazara’s fundamentals remain intact. PokerBaazi’s revenues were never consolidated into Nazara’s financial statements, meaning the company’s topline and EBITDA won’t be directly hit.
The firm’s portfolio includes Kiddopia, Animal Jam, and World Cricket Championship—all non-real-money titles that continue to perform strongly. In fact, Nazara recently doubled its revenues year-on-year in the quarter ending June, none of which came from gambling-linked products.
“This does not destabilise our business in any way—we can continue operating without any disruption,” Mittersain reassured investors. “Once in a while we take a moonshot, we need those to move the needle, we will take this in stride and move ahead.”
PokerBaazi’s Pivot Plans
For PokerBaazi, the situation is more dire. The bill’s implementation, according to ICICI Securities, would “essentially make online real money gaming infeasible in India.” That means PokerBaazi must rethink its entire strategy.
Mittersain confirmed that the PokerBaazi team will soon meet to discuss possible pivots. Two options are on the table:
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International expansion, where PokerBaazi could tap markets with more liberal gaming laws.
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Technology licensing, where the platform’s robust poker tech could be offered to global partners.
Either move could provide an escape route from India’s restrictive environment, but both will take time to execute.
A Silver Lining in Esports Recognition
Amid the grim outlook for online poker, the new bill did bring some good news: it formally recognizes esports as a sport. This could prove to be a significant boost for Nodwin Gaming, an esports and gaming company in which Nazara holds a stake.
As esports continues to gain traction worldwide, the regulatory recognition in India may open doors to sponsorships, mainstream acceptance, and even government support. For Nazara, this offers a potential growth lever as it continues to diversify.
Credits: Bloomberg
What’s Next for Nazara?
Nazara’s situation underscores the risks of regulatory uncertainty in emerging industries. While its bet on PokerBaazi may not pay off as expected, the company’s diversified portfolio shields it from catastrophic fallout.
The gaming giant is positioning itself to ride the esports wave, expand its global footprint, and continue growing its non-real-money products. For investors, the short-term volatility may be unsettling, but Nazara’s resilience and forward-looking strategy could still make it a strong player in India’s evolving digital entertainment landscape.
