Centre notifies draft rules for online gaming regulation and promotion. Here are the details

In a significant move to formalise the online gaming sector, the Ministry of Electronics and Information Technology has issued the Draft Promotion and Regulation of Online Gaming Rules, 2025 (PROG Rules). Framed under the recently passed Promotion and Regulation of Online Gaming Act, 2025, the draft rules propose a detailed regulatory architecture aimed at promoting e-sports and social gaming while curbing online money games.

Centralised oversight 

The rules propose the creation of the Online Gaming Authority of India, a statutory body with powers akin to a civil court. Headquartered in the National Capital Region, the Authority will be tasked with recognising, categorising, and registering online games; maintaining a public registry of approved games; issuing advisories; and imposing penalties for violations.

The Authority will include representatives from ministries of Electronics and IT, Youth Affairs and Sports, Information and Broadcasting, and Financial Services, among others.

Distinction between game types

Under the rules, online games will be categorised into:

• E-sports, which require prior recognition under the National Sports Governance Act, 2025.
• Online social games, intended for recreational, educational, or skill development purposes.
• Online money games, which involve stakes or wagers and are explicitly prohibited.

Games deemed to be online money games must be withdrawn immediately, and advertising or promotion of such games is banned.

Mandatory registration & compliance

Online game service providers must apply for registration of their games with the Authority. Games not involving monetary stakes may still voluntarily seek registration for access to incentives and legitimacy.

A Certificate of Registration will be issued upon approval and will be valid for up to five years. The rules require providers to notify the Authority of any material changes to game features, revenue models, or legal status.

Penalties, suspension, & cancellation 

The Authority is empowered to suspend or cancel registrations in cases of misrepresentation, legal violations, or if a game evolves into a money game. An inquiry process must precede such action, with opportunities for providers to respond. Penalties will be assessed based on the extent of harm, user impact, and repeat violations.

Unregistered or deregistered games are barred from receiving government support under the Act.

Grievance redressal & appeals

Every registered game must maintain a grievance redressal mechanism. Users unsatisfied with redressal can appeal to the Grievance Appellate Committee and, subsequently, the Authority. All complaints and appeals must be resolved within specified time frames, typically 30 to 90 days.

Provisions for pre-existing user funds

Funds held by financial intermediaries before the Act’s enforcement, which are due to users, may be returned without violating the new rules. This provision is valid for 180 days post-enforcement.