The strict ban imposed on the real-mani gaming (RMG) by the Government of India has created a stir in the online gaming sector. The ban stirred up the market, causing a steep decline in shares of listed companies in the region. Investors lost crores of rupees. Nazara Technologies shares fell 14% in two days, while the shares of Delta Corp and Onmobile Global also saw a decline of 2% and 3% respectively.
Retail investors already realized this fear. An interesting fact has been revealed that retail investors were continuously reducing their stake in gaming stocks for the past one year and had already left the market before the ban. Retail investors (who have equity up to ₹ 2 lakh) had reduced their investment in Nazara Technologies in four consecutive quarters.
In the June quarter alone, 11,272 retail investors withdrawed money from this stock, decreasing from 125,692 of March to 114,420 in June. Although these investors suffered a loss of about ₹ 200 crores in the two trading sessions after the ban, investors who got out of the stock during the June quarter made a huge profit of about 37%.
The company’s reactions and concerns Nazara Technologies assured investors that the online gaming promotion and regulation Bill, 2025 will not have any direct impact on its consolidated revenue or Ebitda.
The company clarified that it is only indirect investment in gaming with actual money through its 46.07% stake in Moonshine Technologies (pokering). The net income of Moonshine Technologies rose 54% year-on-year to ₹ 191.8 crore in the first quarter of FY 2026, which is its best quarterly performance ever.
However, there is a perception of concern. Investor PMS business head Harshal Dasani said, “Although Nazara’s main occupation of e-sport, Edtech and Gimifted learning remains strong, the share is under pressure due to perception.” Despite the company’s assurances, investors are afraid that potential regulatory action may reduce its 46% stake in Moonshine Games, which costs more than ₹ 1,000 crore.
The Regulatory Obstacle Parliament has passed the online gaming promotion and regulation Act, 2025, which draws a clear line allowing e-sports, educational games and social games. Whereas, all real-wealth online games, whether they are skill-based or opportunity-based, are completely restricted.
The bill prevents companies from offering or advertising RMG, and banning banks from processing related payments. Those who violate the law may be fined up to ₹ 1 crore and imprisonment of up to three years.
Moving ahead, according to a report by Live Mint, experts believe that shares may continue to volatile until regulatory clarity comes. Although the business of companies like Nazara is diverse and their balance sheet is strong, investors’ perception is currently affected by regulator uncertainty.
Companies such as Onmobile Global have been relatively less affected by the ban as their focus is on mobile entertainment and gaming subscription, not directly on real-wealth gaming. However, being part of the gaming sector, they may also face collateral cell-offs.