Nazara Technologies share price continued its downward momentum on Monday, with the stock down almost 6% today. Earlier in the day, the share price had fallen to a whopping 12% to hit an intraday low of ₹1,014.75. It then pared some of its fall, with the scrip climbing to ₹1,088.00 by 2.30 PM. In fact, in the last five days, the scrip had fallen almost 22%.

As per analysts, Nazara has been under intense selling pressure due to the fallout from the Promotion and Regulation of Online Gaming Bill, 2025, which was passed by the Parliament a few days ago. As per the new law, all online money gaming services stands prohibited, and if any entity is seen violating the new law, the government has imposed penalties that include up to three years in jail, plus fines that can reach up to ₹1 crore. The law also banned advertising of such platforms.

Late last year, as per information gleaned from the law firm, Khaitan and Co, Nazara Technologies had entered into agreements with Moonshine Technology Private Limited, the parent company which operated the online money gaming platform, PokerBaazi, wherein the former would infuse primary capital of ₹150 crore, and would also acquire 48% stake in PokerBaazi, amounting to ₹845 crore. In the aftermath of the new law having been passed in the Parliament, Nazara had said that it has no exposure to the money gaming business. “Nazara has no direct exposure to real money gaming (RMG) businesses,” the company had said in a statement.

As per Kranthi Bathini, Equity Strategist at WealthMills Securities Pvt Ltd., the exposure for Nazara is huge and the selling pressure in the stock is primarily due to the recent ban imposed by the government. "There is going to be a significant impact on the company's revenues due to the exposure to PokerBaazi, hence, the stock is on a downtrend and investors are spooked," he told Fortune India.

Bathini also pointed out that it is not just Nazara but also Delta Corp, which is under selling pressure. Today, Delta Corp's share price had fallen almost 3% to touch ₹85.50. The scrip had fallen almost 6% in the last six months.

ICICI Securities has cut its target price for Nazara by 27%, to ₹1,100 from ₹1,500, and lowering its rating to ‘Reduce’.

Delta Corp calls itself the only listed company involved in casino gaming, with "over 2,000 live gaming positions and state-of-the-art offshore and onshore casinos." It also runs the money gaming platform, Adda52.

Bathini cautioned investors that the stock of these two companies would face intense selling pressure in the short to medium term.