Title: Nazara to Write Down ₹1,000-cr PokerBaazi Stake Over Online Gaming Ban
In a significant development, Nazara Technologies, India’s only listed gaming firm, is considering writing down its ₹1,000-crore (approximately $122 million) investment in PokerBaazi in the wake of the recent ban on online real-money and gambling games. The ban, which was cleared by Parliament, is expected to have a significant impact on the online gaming industry in India.
Nazara Technologies CEO Nitish Mittersain revealed the news in an interview with Bloomberg, stating that the company’s $122-million investment in PokerBaazi stands to be written down or provisioned for now. Mittersain also mentioned that PokerBaazi’s team will be meeting shortly to discuss ideas on how to pivot the business.
The ban on online real-money and gambling games was passed as a part of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. The rules aim to regulate social media, online news platforms, and e-commerce websites, among other things. The ban is expected to have a significant impact on the online gaming industry, which has seen rapid growth in recent years.
PokerBaazi, which is one of the leading online poker platforms in India, has been a significant contributor to Nazara’s revenue. However, with the ban now in place, the company is likely to face significant challenges in sustaining its business.
Nazara Technologies has been at the forefront of the online gaming industry in India, and its investment in PokerBaazi was seen as a significant move to expand its presence in the market. However, with the ban now in place, the company is likely to have to re-evaluate its strategy and find new ways to grow its business.
The ban on online real-money and gambling games is not the only challenge facing the online gaming industry in India. The industry has been facing regulatory hurdles for some time now, and the ban is likely to add to the challenges faced by companies operating in this space.
Despite the challenges, some experts believe that the ban could also present opportunities for the online gaming industry. For example, some companies may be able to pivot their business models to focus on skill-based games, which are not covered by the ban. Others may be able to explore new markets, such as esports or mobile gaming.
In conclusion, Nazara’s decision to write down its PokerBaazi stake is a significant development in the online gaming industry in India. The ban on online real-money and gambling games is likely to have a significant impact on the industry, and companies will need to find new ways to grow their business. While the challenges are significant, some experts believe that the ban could also present opportunities for the industry. As the industry continues to evolve, it will be interesting to see how companies adapt to the new regulatory landscape.
