New regulatory body and strict penalties aim to reshape India's digital gaming landscape
In a significant move to restructure India's online gaming sector, the Ministry of Electronics and Information Technology (MeitY) has released draft rules that outline a detailed regulatory framework for the industry. The proposed Promotion and Regulation of Online Gaming Rules, 2025, follows the nationwide ban on real-money online gaming implemented in August, which affected popular games including poker, rummy, and fantasy sports.
New Regulatory Authority to Oversee Gaming Landscape
The centerpiece of the new regulatory structure is the Online Gaming Authority of India, which will function as the primary regulator for registration, licensing, and enforcement under the Promotion and Regulation of Online Gaming Act, 2025. This statutory body will be tasked with:
- Maintaining a national registry of approved games
- Assessing whether games qualify as "online money games"
- Overseeing registration of online social games and e-sports
The authority will wield considerable power, operating with civil court-like capabilities to summon individuals, review evidence, and issue binding orders. It can suspend or cancel registrations, impose monetary penalties, and direct financial institutions to block access to unlawful gaming platforms.
"The government initially planned to issue the draft without public input but later opted for consultation due to requests from stakeholders," according to officials cited by The Indian Express. Stakeholders now have until October 31, 2025, to submit their feedback on the proposed regulations.
Sharp Distinction Between Social Gaming and Money Games
The draft rules create a clear demarcation between permitted and prohibited gaming activities:
- Strictly Prohibited: All forms of online money gaming, defined as digital games involving wagering, stakes, or prizes convertible to cash
- Permitted with Regulation: E-sports and online social games
Violations of these prohibitions carry severe consequences. Operators offering banned money games could face up to three years' imprisonment and fines reaching ₹1 crore ($120,000). Even advertising such platforms may result in two years in jail and fines up to ₹50 lakh ($60,000).
The draft explicitly states: "Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023, offences under section 5 and section 7 shall be cognizable and non-bailable." This makes clear the government's intent to treat violations as serious criminal matters.
Registration Requirements and User Protection
Gaming entities wishing to operate legally in India will need to register their games with the authority by providing:
- Details about revenue models
- User protection mechanisms
- Safety features
Platforms must demonstrate that their income sources—such as advertisements, subscriptions, or one-time fees—do not involve any stakes or wagers. Each registered game will receive a certificate valid for up to five years, without which no game can be legally advertised or operated.
The framework also establishes a three-tier grievance redressal system:
- Internal handling by the gaming platform
- Appeals to the Grievance Appellate Committee
- Final resolution by the Online Gaming Authority, which must deliver decisions within 30 days
Transitional Provisions and Industry Impact
The draft includes transitional provisions to manage user funds held before the Act's enforcement. Banks and intermediaries will have a 180-day window to refund balances to players without being considered complicit in illegal money gaming.
The Ministry of Information and Broadcasting will issue specific codes of practice to help categorize games meant for skill development, recreation, or learning purposes under "online social games."
Government officials have emphasized that the Act aims not to stifle innovation but to ensure transparent and safe operation of gaming platforms. The rules, once finalized, will be pivotal in shaping India's rapidly expanding gaming sector while addressing concerns about harmful practices.
Industry stakeholders have until October 31, 2025, to submit their comments to India's IT Ministry, after which the final rules are expected to be notified and implemented.
