Nazara share price drops 6% despite update on real money gaming biz; key details

Nazara Technologies Ltd saw its shares falling 6 per cent in Wednesday's trade, even as the company clarified it has no direct exposure to real money gaming (RMG) businesses. In a filing to stock exchanges, Nazara said the contribution to revenues and Ebitda by RMG business was NIL at the end of June quarter.

Nazara Tech said its only indirect exposure to RMG is through its 46.07 per cent stake in Moonshine
Technologies Private Limited (PokerBaazi). 

"As Nazara does not hold a majority stake or exercise control, Moonshine’s revenue is not consolidated in the Company’s financial statements and has no impact on the Company’s reported Revenue or Ebitda. The contribution to PAT by Moonshine as share of profit & loss by associate is negative in Q1-26," it said.

The clarification comes after the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Online Gaming Bill, which makes online betting a punishable offence. The bill is expected to introduce in Lok Sabha today.

Nazara Tech shares fell 3.31 per cent to open at Rs 1,355 apiece on BSE.  It declined further and slipped 6.21 per cent to hit a low of Rs 1,314.25 The stock is down 4.64 per cent in the past one week.

As per BT sources, no bank or financial institution will be allowed to permit transfer of funds for online money gaming, sources told Business Today. The legislation also proposes a prohibition on advertisements of real money gaming, while promoting E-sports and skill-based non-monetary online games. 

Nazara said the company had invested Rs 805 crores towards equity shares in Moonshine through a
combination of cash and stock and, in addition, held compulsory convertible shares amounting to
Rs 255 crore.

"Accordingly, the Company does not anticipate any material adverse impact on its operating financial
performance (revenue or Ebitda) in relation to such media reports," it said.