Pokerbaazi, backed by India’s first and only listed online gaming firm, has ceased offering its real money gaming operations, after the government outlawed such apps.
As a matter of “abundant caution” and in due respect of the government’s online gaming law, Pokerbaazi operator Moonshine Technologies Pvt. Ltd. has ceased offering real money online gaming operations, Nazara Technologies Ltd. said in an exchange filing on Friday.
The online gaming company, backed by marquee investors Nikhil Kamath and Madhusudan Kela and previously Rekha Jhunjhunwala, holds 46.7% stake in Moonshine Technologies.
Moonshine’s move follows a slew of firms suspending online money games, including WinZO, Mobile Premier League and Zupee. Head Digital Works, which operates A23 Rummy and A23 Poker, also said it has closed all online money games.
On Thursday, the Parliament cleared the Promotion and Regulation of Online Gaming Bill, 2025, to prohibit promotion and operation of online money gaming apps. The move threatens the $3.8 billion sector that supports about 200,000 jobs, according to industry bodies. The associations representing the firms have written to Prime Minister Narendra Modi saying that a ban would benefit illegal offshore gambling operators.
The implementation of the bill would “essentially make online real money gaming infeasible in India”, ICICI Securities wrote in a note on Thursday.
Big Writedown
{{/usCountry}}The implementation of the bill would “essentially make online real money gaming infeasible in India”, ICICI Securities wrote in a note on Thursday.
Big Writedown
{{/usCountry}}Nazara’s $122 million investment in PokerBaazi stands to be written down or provisioned for now, Chief Executive Officer Nitish Mittersain had told Bloomberg on Thursday. The firm sees no impact on its revenue or EBITDA since Moonshine’s revenue is not consolidated in the company’s financial statements.
Mittersain said PokerBaazi’s team will meet shortly to discuss ideas to pivot the business, including international expansion or technology licensing.
The bill also formally recognizes esports as a sport, a positive for Nodwin Gaming in which Nazara Technologies holds a stake.
Nazara owns games such as Kiddopia, Animal Jam and World Cricket Championship, none of which will be affected by the new law. In the three months through June, the company doubled its revenues from the previous year. None of that revenue comes from real money gaming, the CEO said.
“This does not destabilise our business in any way—we can continue operating without any disruption,” Mittersain said. “Once in a while we take a moonshot, we need those to move the needle, we will take this in stride and move ahead.”