Nazara Tech's PokerBaazi Bet At Risk Post Online Gaming Ban, Says Prabhudas Lilladher

Brokerage Prabhudas Lilladher has flagged risks to Nazara Technologies' investment in PokerBaazi after the government cleared the Online Gaming Bill proposing a ban on all real-money games. The draft legislation also seeks to prohibit advertisements and bar banks from processing payments linked to such platforms.

Nazara Tech holds about 48% in PokerBaazi, where it has already invested Rs 830 crore, with plans to pump in another Rs 150 crore through compulsorily convertible preference shares. According to Prabhudas Lilladher, if the ban comes into effect, the company may be forced to write off its stake.

PokerBaazi contributes nearly 35% to Nazara's sum-of-the-parts enterprise value. The brokerage's current target price on the stock is Rs 1,345. Excluding PokerBaazi from its valuation matrix, Prabhudas Lilladhar pegs the revised target price at Rs 917.

The Online Gaming Bill 2025, approved by the Union Cabinet on Tuesday, prohibits advertising or endorsements of platforms facilitating online games that involve monetary transactions.

The legislation proposes to bar banks, as well as non-banking financial bodies, from facilitating any transaction involving online money games.

Penalties proposed under the Bill are stringent. Any person offering online money gaming services could face up to three years in prison and a fine of Rs 1 crore. Those involved in advertising or endorsing such platforms may face up to two years in jail along with a Rs 50 lakh fine.

Similarly, anyone facilitating transactions or fund transfers for online gaming could face three years of imprisonment and penalties up to Rs 1 crore.