Shares Of Delta Corp Ltd., Nazara Technologies Ltd. and OnMobile Global came under selling pressure on Wednesday on the central government's proposal for a sweeping ban on all money-based online gaming transactions.
The move would directly impact platforms like Dream11, MPL, Probo, Rummy and Poker operators, as per the provisions in the new Online Gaming Bill.
The proposed legislation aims to impose strict controls on real-money online gaming platforms, including a ban on advertisements and celebrity endorsements, and restrictions on financial transactions facilitated by banks and non-banking financial companies. The Bill also prescribes severe penalties, including up to three years of imprisonment and fines reaching Rs 1 crore for violators. Advertising such platforms could attract up to two years in jail and a Rs 50 lakh fine.
Notably, Nazara Tech on Wednesday issued a clarification stating that it has no direct exposure to real money gaming businesses. The contribution to revenue and Ebitda by RMG business is nil. They stated that the company's only indirect exposure to RMG is through its 46.07% stake in Moonshine Tech.
The timing of the Bill coincides with the government's broader GST overhaul, which reportedly includes a 40% sin tax on online gaming, placing it in the same category as alcohol and tobacco.
In the same light, India's top three online gaming industry associations wrote to Union Home Minister Amit Shah on Tuesday night, seeking urgent intervention against the proposed Online Gaming Bill.
The All India Gaming Federation, E-Gaming Federation and Federation of India Fantasy Sports, representing major players, including MPL, Zupee, Nazara, Games24x7, Junglee Games and Dream11, warned that the legislation could backfire by driving crores of users into illegal matka and offshore gambling networks.
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