The Nazara PokerBaazi write off risk has rattled investors after CEO Nitish Mittersain admitted that the company may have to write off its stake in PokerBaazi’s parent firm, Moonshine Technologies. The warning comes as India’s proposed Online Gaming Bill, 2025 threatens to ban pay-to-play online games, including poker and rummy.
Why PokerBaazi Is at Risk
- Nazara invested over ₹800 crore in Moonshine Technologies, which runs PokerBaazi, one of India’s leading online poker platforms.
- The new Promotion and Regulation of Online Gaming Bill proposes a blanket ban on all games involving stakes, whether skill-based or chance-based.
- If passed, PokerBaazi may be forced to shut down, leaving Nazara with no option but to mark down or write off its investment.
CEO’s Statement
Mittersain called the situation “extremely challenging” but added that Nazara has always been cautious about real-money gaming exposure. The company does not include PokerBaazi’s revenue in its consolidated statements. He emphasized that Nazara would adapt to regulatory shifts and make necessary provisions if required.
Market Impact
- Nazara’s stock plunged over 20% in two trading sessions, reflecting investor fears.
- Brokerage firm Prabhudas Lilladher slashed its fair value estimate of Nazara from ₹1,345 to ₹917, citing the risk of a PokerBaazi shutdown.
- Analysts say the write off could wipe out nearly 30% of shareholder value if the bill becomes law.
Industry & Regulatory Context
India’s gaming industry has been under intense scrutiny. While skill-based gaming had previously enjoyed regulatory ambiguity, the new bill seeks to draw a hard line—potentially ending real-money games altogether.
This is part of a larger government effort to curb addiction, financial risks, and money laundering through online platforms. However, industry players warn that a blanket ban could hurt innovation and investor confidence in India’s growing gaming sector.
What It Means for Nazara
- Short-term pain: The PokerBaazi investment may be written off.
- Long-term safety: Since Nazara’s core business focuses on esports, gaming content, and gamified learning, the company still has diverse revenue streams unaffected by the bill.
- Uncertainty ahead: Much depends on whether the final bill offers any carve-outs for skill-based games.
Conclusion
The Nazara PokerBaazi write off warning is a major red flag for investors, highlighting the risks of regulatory uncertainty in India’s gaming sector. While Nazara’s diversified portfolio may cushion the blow, the outcome of the Online Gaming Bill will decide whether PokerBaazi survives—or becomes one of the first high-profile casualties of India’s gaming crackdown.
