Nazara Technologies gains nearly 5% in Monday trade following Google Play Store boost

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Nazara Technologies, an Indian gaming platform, rallied 5 per cent in trade on September 12, Monday following Google India’s decision to allow rummy applications and fantasy sports on the Play Store as a programme for one year. In its policy update, Google stated that the India Pilot Programme would be held from September 28 to the same date next year.

All the new and existing app developers will have to put forward an application form to Google to proceed forward. According to CNBC-TV reports, Deloitte India has approximated that the fantasy sports market will rise over four-fold by the end of the 2025 financial year. The joint Managing Director of Nazara Technologies, Nitish Mittersain, stated that skill-based games contribute to 80 per cent of the whole gaming market in India, which is why it has major growth potential in the country.

“It contributes 70 to 80 per cent of the overall gaming revenues that are being generated in the country. A lot of these revenues come from some local players, but a lot of it also goes to a lot of international players who are operating in our country,” Mittersain was quoted as saying on CNBC. Over the last few years, there has been a lot of misunderstanding about regulations of how these sectors must be taxed.

Now, with discussions on putting the businesses under (Goods and Services Tax), there is more clarity. The joint Managing Director of Nazara Technologies said that the GST Council is looking at the taxation on online gaming actively and that they are hopeful to get more clarity in the next couple of months.

“We expect sales/PAT CAGR of 46%/77% over FY22-24E and believe Nazara’s portfolio approach to gaming not only diversifies unforeseen risks (Apple’s privacy policy issue or regulatory uncertainty surrounding RMG) but also creates additional growth levers via inorganic route,” said the report.