Nazara terminates deal with I3 Interactive to buy stake in Moonshine

Nazara Technologies Limited has called off its plan to acquire a minority stake in Moonshine Technology Private Limited, the parent company of online poker platform PokerBaazi, following the enactment of the Promotion and Regulation of Online Gaming Act, 2025.

In a stock exchange filing, Nazara said that it issued a termination notice to I3 Interactive on August 31, 2025. 

The company had earlier agreed to purchase 38,073 equity shares, representing 0.96% of Moonshine’s equity from I3 Interactive Inc. for about Rs 15.9 crore. However, with the new law prohibiting real-money online gaming, including poker, Nazara said the deal has triggered a “material adverse effect” under the terms of the Share Purchase Agreement (SPA).

Following the introduction of the gaming bill, Nazara promptly suspended its real money gaming operations. 

Nazara had announced the acquisition of a 46.07% stake in Moonshine in September last year. Besides I3 Interactive Inc, Nazara had bought the shares from a number of sellers, which included PSM Group Limited, Bellerive Capital (BCP) 6 Limited, Shells and Shores Consultancy & Holdings LLP, and others.

Although the listed gaming company has consistently clarified that it neither consolidates Moonshine’s financials nor has any revenue exposure to real-money gaming, the ban would effectively render its investment in PokerBaazi worthless.

While leading gaming firms such as Dream11, Gameskraft and MPL have opted not to contest the new law, the parent company of A23, Head Digital Works, has filed a constitutional petition in the Karnataka High Court to challenge it, prompting the court to issue notice to the central government.