Nazara Technologies has finalised its investment of Rs 150 crore in Moonshine Technology, the parent company behind the online poker platform PokerBaazi. The investment, announced on 12th September, marks the second phase of Nazara’s Rs 982 crore deal to acquire a significant stake in Moonshine.

In the latest development, Nazara invested Rs 150 crore by subscribing to 2.87 lakh compulsorily convertible cumulative preference shares of Moonshine, as confirmed by an allotment letter received on 26th September. This investment is Nazara’s largest to date and aims to strengthen its presence in the growing online skill-gaming sector.

Nazara’s bold move into online skill gaming occurs alongside considerable regulatory hurdles. The 28% Goods and Services Tax (GST) on online gaming, introduced in October 2022, is a major hurdle for companies, as it applies to the full value of bets rather than just the platform’s revenue, raising concerns about profitability and sustainability for many operators.

Despite the challenges, the company is proceeding with its investments, focusing on the long-term potential of the online gaming sector.

Founder Nitish Mittersain is optimistic about the future of online gaming in India, believing it will become the company’s biggest revenue generator. Industry players are looking for clarity on the tax regime and hope for relief from policymakers as the sector grows.

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