India Proposes Online Gaming Authority, Finalises Real Money Gaming Ban

The Indian government has released draft rules to enforce the Promotion and Regulation of Online Gaming Act, 2025 —a landmark law that bans real money gaming nationwide while formalizing structures for regulating social games and esports.

Unveiled by the Ministry of Electronics and Information Technology (MeitY) on October 2, the Promotion and Regulation of Online Gaming (PROG) Rules, 2025, are now open for public consultation until October 31. The rules establish a regulatory blueprint for online gaming, setting clear boundaries between skill-based social games and games involving monetary stakes, such as poker, rummy, and fantasy sports.

Real Money Gaming Prohibited, Esports Recognized

The draft rules bring into force the provisions of the PROG Act passed earlier during the Monsoon Session of Parliament. The Act enforces a blanket ban on online real money games, outlawing any offering that includes wagering, staking, or cashable rewards.

However, the framework also introduces pathways for legitimate online social games and esports. These will be regulated separately and allowed to operate, provided they meet certification requirements.

Acknowledging stakeholder concerns, MeitY reversed its earlier decision to forgo public consultation.

Online Gaming Authority to Oversee Compliance

Central to the new framework is the creation of an Online Gaming Authority of India —a statutory corporate body with wide-ranging powers, including civil court-like authority to conduct investigations, summon individuals, and enforce compliance.

The authority will be tasked with:

• Registering online social games and esports
• Maintaining a national registry of certified games
• Determining whether a game falls under the banned "money game" category
• Imposing penalties or suspending registrations of violators
• Directing financial institutions to block access to illegal platforms

The authority’s headquarters will be in the National Capital Region. It will be chaired by a senior official at the rank of Additional Secretary or Joint Secretary in the IT Ministry. Other members will represent the ministries of youth affairs and sports, information and broadcasting, and financial services.

Registration, User Protections, and Penalties

Under the draft rules, registration is mandatory for any online game—social or competitive—to operate legally. Certified games will receive registration valid for up to five years. Games operating without certification will be banned from being advertised or promoted as legitimate offerings.

To protect users, all registered platforms must implement a grievance redressal system. Users can escalate unresolved complaints to a dedicated grievance appellate committee, and ultimately to the authority itself, both of which must resolve disputes within 30 days.

For transitional clarity, the rules include a provision allowing refunds of user funds held prior to enforcement, without those being treated as support for illegal gaming. This clause will remain valid for 180 days from the date the Act comes into effect.

Severe penalties await those who violate the law. Running or enabling online money gaming could result in up to three years in prison and fines as high as ₹1 crore. Advertising such services could lead to two years in jail and a fine of up to ₹50 lakh.

With the consultation phase underway, the Centre is expected to finalise and implement the rules shortly, reshaping India’s digital gaming ecosystem with a dual focus on consumer safety and responsible innovation.

Source:

“Promotion and Regulation Of Online Gaming Act 2025 and Its Corrigenda”, meity.gov.in, October 2, 2025