Nazara Technologies Cancels Stake Acquisition in Moonshine Technology

Nazara Technologies Limited has decided to cancel its acquisition of a minority share in Moonshine Technology Private Limited, the parent entity of the online poker platform PokerBaazi. This decision follows the implementation of the Promotion and Regulation of Online Gaming Act, 2025. In a recent filing with the stock exchange, Nazara announced that it issued a termination notice to I3 Interactive on August 31, 2025.

Details of the Acquisition Plan

Previously, Nazara had planned to acquire 38,073 equity shares, which accounted for 0.96% of Moonshine’s equity, from I3 Interactive Inc. for approximately Rs 15.9 crore. However, the new legislation, which bans real-money online gaming—including poker—has led Nazara to assert that the deal has caused a “material adverse effect” as per the terms outlined in the Share Purchase Agreement (SPA).

Impact of the New Online Gaming Law

Following the enactment of the gaming bill, Nazara took immediate action to suspend its real money gaming operations. The company previously announced its plan to acquire a 46.07% ownership stake in Moonshine back in September of the previous year. In addition to acquiring shares from I3 Interactive Inc., Nazara had also obtained shares from various vendors, including PSM Group Limited, Bellerive Capital (BCP) 6 Limited, Shells and Shores Consultancy & Holdings LLP, among others.

Financial Implications for Nazara

Despite Nazara consistently stating that it does not consolidate Moonshine’s financials nor is exposed to revenue generated from real-money gaming, the new ban significantly undermines the value of its investment in PokerBaazi.

Reactions from Other Gaming Companies

While major gaming enterprises such as Dream11, Gameskraft, and MPL have chosen not to challenge the new legislation, the parent company of A23, Head Digital Works, has initiated a constitutional petition against the act in the Karnataka High Court. This legal challenge has prompted the court to issue a notice to the central government.