Some of India's top mobile gaming apps have suspended real-money games after parliament passed a ban on Thursday, threatening the future of a sector once projected to hit $3.6 billion by 2029.
The sudden ban on online real-money games, along with related ads and payment services, has jolted an industry backed by investors such as Tiger Global and Peak XV Partners.
Justifying the ban, Prime Minister Narendra Modi's government flagged the high risk of financial harm to users and called them “harmful” due to potential psychological damage.
The ban sparked a sell-off in Nazara Tech's, which has a 46.07% stake in PokerBaazi operator, Moonshine Technologies, that ceased offering online games played with money on Friday. Nazara's shares have fallen about 17% in three sessions, cumulatively.
Indian gaming firms are consulting lawyers on moving the Supreme Court against the ban, arguing it lacked consultation, threatens a fast-growing sector, and wrongly includes skill-based games like poker, Reuters reported on Thursday, citing two gaming industry sources with direct knowledge of the matter.
