What's next for Nazara Technologies?

Summary: Nazara Technologies is in trouble. Its online-money game platform Pokerbaazi has had to halt operations after a sweeping industry ban. The move has jolted the market and raised pressing questions: Is this the beginning of deeper trouble or is Nazara’s strength still intact? Let’s find out Investors have wasted no time in punishing Nazara Technologies. The stock has slid over 17 per cent in three days since the government announced a blanket ban on online money games. In the wake of the development, Nazara has suspended operations of its online poker platform Pokerbaazi. But how deep exactly is the damage for Nazara? We assess the impact and the business below. Hit from Pokerbaazi Since Nazara owns Pokerbaazi through an associate company instead of a subsidiary, the poker platform does not contribute to Nazara’s reported revenue. However, it will still affect the company's profitability. Nazara’s stake in Pokerbaazi, valued between Rs 800–Rs 1,060 crore, is now at risk of impairment. In simple words, Nazara will