Gaming company Nazara Technologies shares came under pressure to sell shares after an ordinance passed by the Tamil Nadu government bans online gaming in the state.

On September 26, Chief Minister MK Stalin and Tamil Nadu Cabinet approved an ordinance banning online gaming, including betting, in the state. According to a government statement, the ordinance will come into effect after the assent of the Governor. Shares of Nazara Tech fell over 2% to Rs 665.

Nazara is a diversified gaming and sports media platform operating in India, offering products from emerging and developed global markets such as Africa and North America, interactive gaming, esports and gamified early education ecosystems.

The company has some of the best-known products, such as the World Cricket Championship, Kiddopia in gamified early learning, NODWIN and Sportskeeda in eSports and eSports media, and Halaplay, Qunami and OpenPlay for skill-based, fantasy and fun games.

The move comes as the Supreme Court begins hearing the Tamil Nadu government’s petition challenging a Madras High Court ruling overturning the AIADMK-led government’s November 2020 decision to ban online gaming Judgment from making a transfer. In an order issued on August 3, 2021, the state Superior Court declared it unconstitutional.

The company recently acquired a 100% stake in American interactive entertainment company WildWorks in an all-cash deal of $10.4 million. Analysts raised their earnings estimates after the acquisition. It set a target price of Rs 1,031 on the stock.