Shares of gaming companies plunged on August 25 after President Droupadi Murmu gave her assent to the Promotion and Regulation of Online Gaming Bill, 2025, officially making it law in India.
Nazara Tech Hits 3-Month Low
Nazara Technologies was the biggest loser, with its stock tumbling over 11% to ₹1,026.70, marking its lowest level in three months. The stock has already fallen 26% in the past five days and currently trades at a price-to-earnings (P/E) ratio of nearly 95, raising concerns among investors.
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Delta Corp Extends Losses
Delta Corp also slipped around 2% to ₹86.29, adding to its weak run. The stock is already down 6% over the past six months and has declined nearly 23% in 2025 so far.
Industry Faces Major Setback
The new law bans online money games where users deposit funds with the expectation of winnings, striking at the core of India’s online gaming sector. Analysts warn the impact could be severe, leading to:
Loss of nearly 2 lakh jobs
Collapse of several start-ups
Erosion of ₹25,000 crore in foreign investment
Drop of ₹20,000 crore in tax revenues
Market Update & Insights
Investor sentiment remains fragile as regulatory risks hit gaming stocks.
Nazara’s sharp fall highlights valuation concerns with high P/E ratios under scrutiny.
Broader market stability will depend on sectoral spillover, as gaming counters brace for further selling.
Analysts expect short-term volatility until clarity emerges on how the law will be implemented.
The Online Gaming Bill’s passage has triggered one of the sharpest corrections in India’s listed gaming sector, shaking both investors and industry players.
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