Draft rules for online gaming law notified
India's draft PROG Rules, 2025 aim to regulate online gaming, distinguishing skill-based from money games, and establishing an oversight authority.
New Delhi The Centre notified the draft Promotion and Regulation of Online Gaming (PROG) Rules, 2025 on Thursday, outlining a comprehensive framework to regulate online gaming and inviting feedback and comments by October 31.
The draft rules, issued under the recently enacted PROG Act that bans online money games, aim to draw a clear line between skill-based social games and money-based games while also establishing an institutional framework for oversight.
Officials in the IT ministry had earlier said the rules would be published without public consultation.
“We changed our minds due to requests from stakeholders,” a ministry official said.
At the heart of the draft rules is the creation of the Online Gaming Authority of India “as a corporate body with powers similar to a civil court to conduct inquiries and summon individuals” according to an explanatory note issued by the ministry on Thursday.
The authority, as regulator of the industry, will register online social games and e-sports, maintain a national registry of approved games, and determine whether a game qualifies as a legitimate offering or as an online money game. Any game that involves wagering, stakes, or winnings that can be converted to cash will be deemed an online money game and barred from operating in the country.
The authority has also been vested with wide-ranging powers like suspending or cancelling registrations, imposing penalties on companies found to be in violation of the law, and issuing directions to financial institutions and service providers to block unlawful gaming platforms. It also has quasi-judicial powers, similar to those of a civil court, allowing it to summon individuals, examine evidence, and issue binding orders.
The authority, to be headquartered in the National Capital Region, will be headed by a chairperson who will hold the rank of additional secretary in the IT ministry or an officer of at least joint secretary rank. It will also include three ex-officio members at the joint secretary level representing the departments or ministries related to information and broadcasting (I&B), youth affairs and sports, and financial services.
In addition, there will be two ex-officio members at the director level, with at least one having legal expertise. The central government will appoint a secretary to the authority, also at the director level, to assist with its functions. The chairperson may invite experts as needed, and non-official experts will receive allowances as per government norms.
While the authority will act as the regulator, the promotion and policy side of things will be seen by different ministries. Recognition of e-sports will be overseen by the ministry of youth affairs and sports, while the I&B ministry will handle the promotion of online social games.
Both categories of games will require registration with the authority and a certificate of registration, valid for up to five years, in order to operate legally. Without such certification, a game cannot be represented or advertised as a registered offering.
To protect users, the rules mandate that every registered online game provider establish a system to redress grievances. Users not satisfied with a platform’s response can appeal to the grievance appellate committee, and, if still unresolved, escalate the matter to the authority. Both the committee and the authority will be expected to resolve appeals within 30 days.
Another provision addresses user funds collected before the rules come into force. Any amounts that were due to the players before the enforcement of the Act can be refunded to them by banks or financial intermediaries without being considered as support of illegal online money gaming. This transitional provision will remain valid for 180 days from the date the Act is enforced.
Under the Act, offering online money gaming services can attract penalties of up to three years in prison and fines of up to ₹1 crore. Advertising such platforms may also lead to a two-year jail term and fines of up to ₹50 lakh.
