Gaming stocks extend fall as Parliament passes bill to ban online money games; Delta Corp, Nazara Tech tumble

Shares of gaming companies extended their losing streak on Friday after Parliament passed a bill banning online money-based games. Nazara Technologies, backed by Rekha Jhunjhunwala, Delta Corp and OnMobile Global declined up to 5% today, in sync with weak broader market. The benchmark indices BSE Sensex and NSE Nifty were down 0.65% each as caution ahead of U.S. Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium later today.

Nazara Technologies shares dropped as much as 5% to ₹1,145.55 on the BSE, while Delta Corp shares slipped 2.3% to ₹89.09. Similarly, OnMobile Global share price declined 2.1% to ₹52.41 apiece.

In the past three sessions, since the Union Cabinet cleared the online gaming bill, Nazara Tech shares have fallen by as much as 18%, while Delta Corp and OnMobile Global have lost over 5% each.

After receiving a green signal in the Lok Sabha on Wednesday, the Promotion and Regulation of Online Games Bill, 2025, was passed in the Rajya Sabha on Thursday.

The gaming bill proposes a series of measures to formalise India’s fast-growing gaming sector, while seeking to impose a complete ban on “online money games” (games of chance) along with related services, advertisements, and fund transfers.

The new bill buckets online games into 3 categories. One, ‘E-sport' - which includes multi -sports event between individuals or teams, that are conducted in multiplayer formats and have a defined set of games rules, and the outcome of these games is determined by factors largely based on skills of the players such as strategic thinking, physical dexterity.

The second category comprises of ‘online money game’, which are either skill based, or chance based, or both and is played by paying money or other stakes such as purchase of tokens or coins or other forms.  

The third is the “online social game”, where neither money nor any other payment in required to participate for games that are meant for entertainment, recreation or skill-development purposes but can charge a  subscription fee or one-time access fee but not as a wager.

The bill seeks to promote e-sports and online social games, and also proposes the establishment of a dedicated authority to oversee these segments.

India hosts one of the world’s largest gaming ecosystems, with over 591 million users, second only to China, many of whom actively participate in skill-based games. The gaming sector is valued at $25 billion, generating $3.5 billion in revenue and contributing more than ₹25,000 crore annually in taxes, while supporting nearly one lakh direct and indirect jobs.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)