Nazara Technologies Shares Plummet Amid New Online Gaming Legislation

Nazara Technologies' stock experienced a significant drop of nearly 13% as the Indian government passed new legislation targeting the online gaming industry. The Promotion and Regulation of Online Gaming Bill, 2025, aims to curb games involving real money due to concerns about addiction and financial fraud.

The bill, passed by the Lok Sabha, proposes a ban on advertisements and restricts financial institutions from processing transactions related to real money games. Despite Nazara's lack of direct involvement in this sector, their stock still saw notable fluctuations, indicative of the bill's wide-reaching impact on the industry.

Santosh Meena from Swastika Investmart attributed the slump to investor sentiment following the announcement. While Nazara clarified its lack of direct exposure, having only a minority stake in Moonshine Technologies, the broader gaming industry felt the tremors of the regulatory changes.

(With inputs from agencies.)