The proposed Online Gaming bill could pose some challenges to the current operating model of Pokerbaazi in India, according to Nazara Technologies Ltd.'s Nitish Mittersain. "We will figure out how to adapt the business going forward," he told NDTV Profit.
Nazara Tech on Wednesday issued a clarification stating that it has no direct exposure to real money gaming businesses. The government is set to introduce the Promotion and Regulation of Online Gaming Bill, 2025 in the Parliament on Wednesday, after its Cabinet approval.
The proposed law seeks to ban advertising and endorsements of platforms offering real-money games and bars banks and NBFCs from processing related transactions. Mittersain noted that this is an extremely challenging time, kind of a 'watershed moment' for the online gaming industry.
Nazara's own strategy is focused on its core gaming business, which is global business that has 80% business from the international markets, he added. Mittersain highlighted that the company would like to see the actual bill and the contents of it. "As right now, we don't have access to the bill and we have only seen media reports," he said.
Pokerbaazi is the company's only investment exposed to real money gaming. "It is tech-first platform and business remains relevant. PokerBaazi's revenue has no impact on the company's reported revenue or Ebitda. PokerBaazi's contribution to profit after tax as a share of profit and loss by associate is negative in the first quarter," he said.
Nazara Tech, via an exchange filing on Wednesday, stated that the company's only indirect exposure to RMG is through its 46.07% stake in Moonshine Tech. The company had invested Rs 805 crore in equity shares of Moonshine through a combination of cash and stock, and additionally holds compulsory convertible shares amounting to Rs 255 crore.
They also added that PokerBaazi's revenue is not consolidated in the company's financial statements. Mittersain noted that Nazara Tech will create necessary provisions if situation demands for the same. "We will have to adapt, according to the bill," he said.
Further, India's top three online gaming industry associations have written to Union Home Minister Amit Shah, seeking urgent intervention against the proposed Online Gaming Bill, which aims to outlaw money-based digital games.
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