The Ministry of Electronics and Information Technology, India (MeitY) has notified new online gaming rules that will come into force on 1 May, establishing a formal regulatory framework and banning online money games. The move follows the enactment of the Promotion and Regulation of Online Gaming Act (PROGA), 2025, passed by Parliament in August last year.
Ban on online money games
The rules clearly prohibit online money games in India. The government said such games are already explicitly banned under the law. Officials stated that any game involving real money stakes falls under this category and will not be allowed to operate.
Sagar Nair, Head of Incubation, LVL Zero Incubator, said, “The Promotion and Regulation of Online Gaming Act, 2025, is a pivotal moment for early-stage gaming startups in India. Clarity in regulation is one of the most critical enablers for innovation, and this framework helps remove long-standing ambiguity that founders have had to navigate.”
“For emerging startups, this is an opportunity to align with a more structured ecosystem, one that encourages creativity, responsible design, and long-term value creation. With the right support across funding, mentorship, and policy stability, India has the potential to become a hub for game development and interactive media innovation,” Nair added.
IT Secretary S Krishnan said that most online games will not require mandatory registration if they are not real-money games. Oversight will apply only in specific cases, indicating a lighter approach for social and skill-based gaming platforms that do not involve financial transactions.
Classification of framework
The new rules introduce a clear distinction between permitted online social games and banned online money games. A structured and time-bound classification mechanism will be used to determine the status of different games.
While online money games are banned, certain categories, such as esports and social games, may require registration under a statutory framework. This aims to bring clarity and consistency to the sector.
Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, said, “The enactment of the PROG Act, 2025, brings much-needed clarity and structure to India’s esports ecosystem. The provision for formal registration of titles as esports by publishers is a particularly welcome move, as it eliminates the risk of misrepresentation and prevents proxy real-money platforms from self-declaring themselves as esports.”
Online gaming authority to be set up
The rules provide for the creation of the Online Gaming Authority of India, which will act as the central regulatory body. It will be chaired by an Additional Secretary from MeitY and will include joint secretaries from key ministries such as Home Affairs, Finance, Information and Broadcasting, Youth Affairs and Sports, and Law and Justice.
The authority will function primarily as a digital office. Its responsibilities include maintaining and publishing a list of online money games, examining complaints, issuing directions, and setting codes of practice.
Powers and functions of authority
The Online Gaming Authority will also hear appeals related to user grievances against gaming service providers. It will have the power to conduct inquiries and impose civil penalties on operators who do not comply with the rules.
The authority will coordinate with financial institutions and law enforcement agencies to ensure effective enforcement. This includes tracking financial transactions linked to prohibited gaming activities and taking action where required.
Focus on user safety
The rules mandate several user protection measures. Gaming platforms must introduce safety features, transparent terms, and proper grievance redressal systems. The framework also requires companies to avoid misleading claims, especially those related to quick financial gains.
The government said the rules are designed to protect children and vulnerable users from risks such as addiction and financial loss.
Digital enforcement
Enforcement under the new system will be digital-first. Proceedings related to violations will be conducted online, and penalties will be determined based on the severity of the breach and its impact on users.
The framework includes provisions for civil penalties, inquiries, and an appellate mechanism to ensure accountability. The rules also aim to provide a predictable regulatory environment with defined timelines for decision-making.
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