Online Gaming Bill: Nazara Tech Clarifies, Says No Direct Exposure To Real Money Gaming
Proposed law seeks to ban advertising and endorsements of platforms offering real-money games .
Nazara Tech on Wednesday issued a clarification stating that it has no direct exposure to real money gaming businesses. The clarification comes amid the government's proposal to ban online 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.
Nazra Tech, via an exchange filing on Wednesday, clarified that the contribution to revenue and EBITDA by real money gaming business is nil. They stated that the company’s only indirect exposure to RMG is through its 46.07% stake in Moonshine Tech.
The proposed law seeks to ban advertising and endorsements of platforms offering real-money games and bars banks and NBFCs from processing related transactions.
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.
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They also added that PokerBaazi's revenue is not consolidated in the company's financial statements. Essentially that 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.
Finally, the company does not expect any material adverse impact on the operating financial on the back of this new regulation.
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.
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.
