Gaming stocks witnessed selling pressure on Wednesday, with key players such as Delta Corp, Nazara Technologies, and OnMobile Global falling up to 6% in early trade. Sentiment was dampened after the Union Cabinet cleared the Online Gaming Bill, 2025, making online betting a punishable offence. This prompted investors to turn cautious over its potential regulatory impact on the industry.

Weighed down by the development, shares of Nazara Technologies, backed by Rekha Jhunjhunwala, declined as much as 6.2% to ₹1,314.25 on the BSE. Similarly, Delta Corp shares plunged up to 6.5% to ₹87.24, while OnMobile Global slipped 4.6% to ₹52.65.

Meanwhile, the BSE benchmark Sensex was down 80 points at 81,563, and the NSE Nifty50 slipped 44 points to the 24,937 level.

On Tuesday, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Online Gaming Bill, which is likely to be introduced in the Lok Sabha today. If passed, the Online Gaming Bill, 2025, is expected to ban all money-based gaming transactions, putting a stop to online betting.

The draft bill proposes several measures to formalise the thriving gaming industry, while also aiming to put a full stop to "online money games" (games of chance) and related services, advertisements, and fund transfers to such platforms, the draft copy accessed by Fortune India shows.

Bringing formal regulation to the legitimate online gaming industry in India, the new bill aims to promote e-sports and online social games. It also proposes the formation of an authority to regulate online games, including e-sports and online social games.

The Centre has said the proposal to regulate e-sports, online casual games, and the prohibition on online money gaming in India is "justified" on multiple constitutional, legal, social, and technical grounds. Through the Promotion and Regulation of Online Gaming Bill, 2025, the government aims to curb unregulated online money gaming entities, which pose serious legal, social, financial, and security threats.

The bill also seeks to enhance the ease of living and address the limitations of current laws in tackling challenges associated with the online gaming industry. The government believes a central regulation will bring legal clarity, protect public health and order, and establish India as a "digitally responsible nation."

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