Synopsis: The Online Gaming Bill, 2025 bans money-based online games, imposes strict penalties, spares e-sports, and reshapes risk-reward dynamics, heavily impacting Delta Corp, OnMobile, and Nazara Technologies.
Investors should closely track gaming stocks impacted by the proposed Online Gaming Bill, 2025, as it reshapes the regulatory landscape. With stricter penalties on real-money gaming but exemptions for e-sports, the bill signals major shifts in risk, opportunity, and long-term industry outlook, making investor vigilance essential.
What is the bill about
The Indian government’s proposed Online Gaming Bill, 2025, seeks to prohibit all online games involving monetary transactions, targeting platforms such as Dream11, MPL, and Probo, and operators offering rummy and poker. The bill categorises “online money games” as any digital game of skill or chance where players pay fees or deposit money with the expectation of financial returns.
It introduces stringent penalties, including up to three years of imprisonment or an Rs. 1 crore fine for operators, and up to two years in jail or an Rs. 50 lakh fine for endorsers and advertisers. Financial institutions facilitating such transactions could also face equivalent penalties, signalling a robust crackdown on betting-related activities.
The legislation aims to protect consumers from the harms of betting while fostering non-monetary gaming sectors like e-sports and recreational gaming, which are exempt if they lack betting elements. Approved by the Cabinet, the bill is slated for introduction in Parliament and could reshape India’s thriving fantasy sports and card gaming industry, valued in billions. By distinguishing between harmful betting practices and legitimate gaming, the government intends to curb financial risks while promoting safer digital entertainment options.
Stocks to watch
1. Delta Corp
Delta Corp, based in Pune, India, is a prominent gaming and hospitality firm. It operates casinos, online gaming platforms, and hotels, with a strong presence in Goa and Daman.
The company focuses on premium entertainment and leisure experiences, impacted by regulatory changes in gaming taxation. With a market capitalisation of Rs. 2,464 crores, it fell to Rs. 86.61, hitting a low of up to 6.75 percent from its previous closing price of Rs. 92.88. The stock reversed from red to green in the morning session and is now trading near Rs. 98, marking an intraday gain of 6.37 percent.
In Q1FY26, revenue stood at Rs. 184 crore, reflecting a YoY growth of 3.4% from Rs. 178 crore in Q1FY25 and a marginal QoQ increase of 0.5% over Rs. 183 crore in Q4FY25. The company maintained stable topline momentum, with sequential growth flattening after a strong FY25 close.
Net profit in Q1FY26 was Rs. 29 crore, marking a strong YoY growth of 32% compared to Rs. 22 crore in Q1FY25. However, on a sequential basis, profit saw a steep QoQ decline of 82% from Rs. 165 crore in Q4FY25, largely due to a high base in the previous quarter. This indicates robust annual earnings momentum but near-term pressure on profitability.
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2. OnMobile Global
OnMobile Global, headquartered in Bangalore, India, specialises in mobile entertainment services, offering games, videos, and contests. Serving telecom operators across numerous countries, it delivers innovative content solutions.
The company emphasises engaging mobile experiences but navigates challenges in the evolving telecom regulatory landscape. With a market capitalisation of Rs. 569 crores, it fell to Rs. 52.50, hitting a low of up to 4.92 percent from its previous closing price of Rs. 55.22.
In Q1FY26, revenue came in at Rs. 125 crore, showing a marginal YoY growth of 0.8% against Rs. 124 crore in Q1FY25 but a sharp QoQ decline of 19.9% compared to Rs. 156 crore in Q4FY25. This indicates stable annual performance, though sequentially revenue witnessed a correction after a stronger previous quarter.
Net profit for Q1FY26 stood at Rs. 16 crore, a sharp turnaround from a loss of Rs. 15 crore in Q1FY25, and also an improvement over the loss of Rs. 8 crore in Q4FY25. This reflects a strong recovery in profitability, both YoY and QoQ, despite revenue moderation.
3. Nazara Technologies
Nazara Technologies, founded in Mumbai, India, is a leading mobile gaming and esports company. It develops interactive games, esports platforms, and ad-tech solutions, with popular titles like World Cricket Championship and Kiddopia.
Operating globally, it focuses on innovative digital entertainment and strategic acquisitions. With a market capitalisation of Rs. 12,086 crores, it fell to Rs. 1,302.40, hitting a low of up to 6.9 percent from its previous closing price of Rs. 1,399.70.
In Q1FY26, revenue stood at Rs. 499 crore, showing a strong YoY growth of 99% from Rs. 250 crore in Q1FY25, though it recorded a QoQ decline of 4% versus Rs. 520 crore in Q4FY25. This reflects a sharp scale-up in annual performance, while revenue moderated slightly after a robust Q4.
Net profit surged to Rs. 51 crore in Q1FY26, delivering a YoY growth of 113% compared to Rs. 24 crore in Q1FY25 and a significant QoQ jump of over 12x from Rs. 4 crore in Q4FY25. This underscores a strong improvement in profitability, supported by operating leverage and better margins despite a small dip in sequential revenue.
Written By Fazal Ul Vahab C H
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