Nazara Drops Deal to Raise Stake in Moonshine Post Gaming Ban

Nazara Technologies Limited has terminated its plan to acquire an additional 0.96% stake in Moonshine Technology Private Limited, the parent company of PokerBaazi, citing regulatory challenges following India’s ban on online real money gaming. The agreement to buy the shares from I3 Interactive Inc. for approximately INR 15.90 crore, signed in September 2024, has been cancelled due to a “material adverse effect” triggered by the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which prohibits online real-money poker gaming.

Nazara Currently Has a 46% Stake in Moonshine

Nazara currently holds a 46% stake in Moonshine, acquired from a variety of sellers including institutional investors and individuals. The company has invested roughly INR 805 crore in equity shares and holds compulsory convertible shares valued at INR 255 crore.

However, the company reported zero revenue contributions from real money gaming in Q1 FY26, as it neither controls Moonshine nor consolidates its earnings from that segment. So, despite regulatory headwinds, Nazara expressed confidence in its ability to absorb any impairment losses due to its robust profitability and cash flows.

This decision to exit further acquisition rounds aligns Nazara with other companies in the industry retreating from India’s real money gaming market following legislative changes. Regulators introduced the new gaming legislation on August 22, 2025, which bans real-money games including poker and fantasy sports. This law has forced many operators to reconsider business models, invest in free-to-play or international markets, or halt operations. 

Moonshine, impacted by these regulations, has also initiated cuts affecting nearly half its workforce in efforts to pivot to a sustainable business model. Nazara’s leadership has emphasized a strategic shift towards building long-term value through diversified gaming and esports ventures, reinforcing resilience amid the evolving regulatory landscape. The termination of the INR 15.9 crore deal highlights the swift impact government policy changes have on acquisition strategies and investment plans in India’s online gaming sector.