In what could be a significant body blow to India’s multi-billion-dollar online gaming industry, the government is reportedly preparing to introduce a sweeping ban on online money-based games.
The proposed Online Gaming Bill is likely to be tabled in the Parliament session on Wednesday.
Reacting to this news development, stocks such as Nazara Technologies and Delta Corp took a knock in the opening trade.
Nazara was down 5.3% to ₹1,327.80 in early trade on Wednesday, while Delta Corp slipped 3.8% to ₹89.31. Nazara was also among the top 5 trending stocks on the platform.
However, Nazara has clarified that they have no direct exposure to real money gaming, with its Q1 FY26 revenues and EBITDA showing zero contribution from the segment. In a press release on Wednesday, it highlighted that its only indirect exposure is a 46.07% stake in Moonshine Technologies (PokerBaazi), whose results are not consolidated, and which reported a negative PAT contribution in Q1 FY26.
Brokerage Take
Prabhudas Lilladher has warned that Nazara Technologies’ investment in PokerBaazi faces risk after the proposed Online Gaming Bill, which could force the company to write off its stake. Since PokerBaazi accounts for about 35% of Nazara’s enterprise value, the brokerage has cut its target price from ₹1,345 to ₹917 if excluded from valuations.
Online Gaming Ban?
The proposed “Promotion and Regulation of Online Gaming Bill 2025” states that no individual or entity will be allowed to offer, promote, or engage in money-based online gaming, citing risks of psychological harm and financial distress.
As per the draft, the bill defines such games as those where users deposit money in hopes of winning monetary or material rewards. The government argues that these platforms often employ addictive algorithms and manipulative features that can encourage compulsive behavior, ultimately leading to financial ruin. Violators could face penalties of up to three years in jail and significant fines.
The Bill reportedly proposes imprisonment of up to three years or a fine of up to ₹1 crore, or both, for offering online money gaming services in violation of its provisions, while advertisements in contravention of rules could attract up to two years’ jail or a ₹50 lakh fine.
It also specifies that anyone involved in fund transactions or authorizations related to such games may face up to three years’ imprisonment or a fine of up to ₹1 crore, or both.
Cricket-based Gaming Platforms Under Threat
The proposal comes at a time when India’s real-money gaming industry is expanding rapidly. Venture capital firm Lumikai estimates the market could reach $3.6 billion by 2029.
Popular fantasy cricket platforms like Dream11 and Mobile Premier League (MPL) have been at the forefront of this boom, backed by endorsements from top cricketers and aggressive marketing campaigns. Dream11 currently holds an $8 billion valuation, while MPL is valued at $2.5 billion, according to data platform PitchBook.
These apps see peak activity during the Indian Premier League (IPL), where users can join contests for as little as ₹8 and compete for prize pools exceeding ₹12 lakh.
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