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The Ministry of Electronics and Information Technology (MeitY) has released the draft Promotion and Regulation of Online Gaming Rules, 2025, intended to operationalise the Promotion and Regulation of Online Gaming (PROG) Act, 2025. The government has also invited public feedback on the draft rules till the end of this month via email submission.

Objective

The draft rules aim to establish a comprehensive national framework for regulating the online gaming ecosystem in India. They seek to differentiate legitimate e-sports and social gaming from real money gaming (RMG) platforms, thereby ensuring user protection, transparency, and responsible innovation.

Key Provisions

1. Ban on Real Money Gaming: The Act prohibits real money gaming (RMG) — including online poker, rummy, fantasy sports, and betting — where players wager or stake money for potential returns. Only social games and e-sports, meant for recreation, education, or skill development, are permitted.

2. Establishment of the Online Gaming Authority of India (OGAI): A dedicated regulatory body, the Online Gaming Authority of India (OGAI), will be set up to oversee the sector.

• Composition: A Chairperson and five members representing different ministries.
• Powers: Quasi-judicial authority to summon individuals, examine evidence, and issue binding directions.
• Functions:
  • Determine whether a game qualifies as an “online money game.”
  • Register and certify online social games and e-sports.
  • Impose penalties, suspend or cancel registrations for violations.
  • Ensure compliance with ethical and revenue guidelines.

3. Registration Framework

• Mandatory Registration: All social and e-sports games must register with OGAI.
• Validity: Registration certificates will remain valid for up to five years.
• Disclosure Requirements: Companies must declare revenue sources and user protection measures.
  • Revenue must originate from advertising, subscriptions, or access fees, not wagers or stakes.

4. Penalties and Offences

• Offering or operating an online money gaming service: up to 3 years’ imprisonment and ?1 crore fine.
• Advertising such platforms: up to 2 years’ imprisonment and ?50 lakh fine.
• Offences are non-bailable, and company officials can be held personally liable.
• Penalty quantum will depend on extent of gain, user loss, and frequency of violation.

5. Grievance Redressal Mechanism (Three-Tiered)

1. Internal redressal unit of the gaming company.
2. Grievance Appellate Committee (GAC) under the IT Rules, 2021.
3. Online Gaming Authority of India (OGAI) as the final appellate body.

6. Role of Various Ministries

• Ministry of Electronics & IT (MeitY): Nodal authority for overall regulation.
• Ministry of Youth Affairs: Oversight of e-sports.
• Ministry of Information & Broadcasting (I&B): Regulation of social games, including issuing codes of practice and classification guidelines.