India’s Draft Online Gaming Rules, 2025: What Founders Need to Know

The Ministry of Electronics and Information Technology (“MeitY”) has released the Draft Promotion and Regulation of Online Gaming Rules, 2025 (“Draft Rules”), under the Promotion and Regulation of Online Gaming Act, 2025 (“PROG Act”).

These draft rules are now open for stakeholder feedback and once notified, they will form the operational backbone of India’s online gaming regime. In simple terms: this is the Government’s plan to promote legitimate e-sports and social games, while strictly prohibiting exploitative money-based gaming.

Here is a breakdown of what founders, product heads, and gaming entrepreneurs should understand from the draft.

1. The Big Picture: Why These Rules Matter

India’s online gaming space has been booming but messy, a mix of skill-based games, real-money models, and offshore betting apps, all operating across inconsistent State laws. The PROG Act (which already became law in August 2025) laid down the broad framework to:

1. Promote legitimate, skill based and educational gaming;
2. Prohibit online money games that involve stakes or wagers;
3. Establish a single national Online Gaming Authority for oversight;
4. Protect users (especially minors) from financial and psychological harm.

Now, the Draft Rules specify how this framework will actually function: who will regulate, how games will be recognised or registered, how compliance will work, and what happens if a game crosses into “money gaming”.

In essence, these rules are the operating manual for the Act.

2. Who Will Regulate What

The Draft Rules create a multi-ministry structure, coordinated through Meity:

At the centre of it all will be the Online Gaming Authority of India (“Authority”), a new national body that will register games, enforce compliance, investigate complaints, and coordinate with banks and law enforcement.

3. What Kinds of Games Are Covered

The draft framework divides games into three legally distinct categories:

1. E-sports: Competitive, skill-based digital sports recognised under the National Sports Governance Act, 2025. Example: organised tournaments like FIFA, BGMI, or Valorant events with structured rules.
2. Online Social Games: Recreational or educational games that don’t involve wagering. These can charge access or subscription fees (not stakes), and are meant for entertainment, learning, or skill-building.
3. Online Money Games: Any game where users deposit money (or its digital equivalent) with an expectation of winning money or something convertible to money. These are explicitly prohibited under the Act.

This distinction will guide whether a game can be promoted, registered, or banned.

4. The Online Gaming Authority: India’s Central Regulator.

1. Structure - The Authority will be a statutory, digital-first regulator headquartered in NCR. It will be chaired by a senior MeitY officer (Additional Secretary or higher) and include ex-officio members from:
   1. Information & Broadcasting,
   2. Youth Affairs & Sports,
   3. Financial Services,
   4. two other Members ex officio, not below the rank of Director, at least one of whom shall have special knowledge and experience in law.
2.  Functions - Once operational, the Authority will:
   1. Determine whether a game is an “online money game”;
   2. Recognise and register legitimate online social games and e-sports;
   3. Maintain a National Online Games & E-sports Registry (a public database of approved games);
   4. Issue codes of practice for safe and age-appropriate gaming;
   5. Coordinate with financial institutions and enforcement agencies; and
   6. Impose penalties for violations.

The Authority will also have civil-court powers which means it can summon individuals, demand documents, and issue enforceable orders. Appeals from its decisions will lie with the Appellate Authority (Secretary, MeitY) within 30 days.

5. How Registration Will Work.

1. For Developers and Operators - Any online game service provider can apply digitally to the Authority for recognition and registration of: (i) an e-sport, or (ii) an online social game. Applications will need to include:
   • Business and statutory registration details,
   • Game description and intended age group,
   • Category (recreation / education / skill development),
   • Revenue model (ads, subscriptions. Not wagers),
   • User safety and grievance redressal setup,
   • A formal undertaking of compliance with Indian laws.
2. Voluntary for Social Games - Unlike e-sports (which require registration), social games can be offered without registration. However, voluntary registration gives added legitimacy and reduces the risk of being misclassified as a money game.
3. Timeframe - The Authority must process each application within 90 days from the date of receipt of complete information. If the Authority finds a game involves money or stakes, it can:
   • Declare it an “online money game”,
   • Order it to stop operating,
   • Prohibit its promotion and payment facilitation, and
   • Add it to a public list of banned games.

6. Certificates, Validity, and Compliance

Once approved, the Authority will issue a Certificate of Registration with a unique number, valid for up to five years, unless suspended or cancelled. Holders must:

1. Notify the Authority of any material change, such as gameplay, monetisation, or user engagement that alters its nature.
2. Comply with ongoing reporting or audit requirements.

Suspension or Cancellation - The Authority can suspend or revoke a certificate if:

1. The game morphs into an online money game,
2. False or misleading details were given,
3. The operator repeatedly violates rules or directions, or
4.  Recognition under the Sports Act lapses (for e-sports).

Before taking such action, the Authority must issue a show cause notice, allow the operator to respond, and conclude its inquiry within 90 days.

Voluntary Surrender - A game operator can surrender its registration at any time, though this would not wipe past liabilities.

1. The profit gained or harm caused,
2. Whether the violation was repeated,
3. The number of users affected,
4.  Any remedial steps taken by the operator.

Penalties will be recoverable as arrears of land revenue, and amounts collected will go to the Consolidated Fund of India.

7. Penalties and Enforcement

The Draft Rules build on the penalty framework under the PROG Act. The Authority can initiate proceedings on its own or on user complaints. Possible actions:

1. Monetary penalty up to ₹10 lakh per contravention.
2. Suspension or cancellation of registration.
3. Temporary or permanent prohibition from offering or promoting a game.

8. User Grievance Redressal System

The Draft Rules propose a three-tier grievance mechanism:

1. Internal System (Game Level): Every registered game must have a designated grievance officer, a visible contact mechanism, and timelines for user complaint resolution.
2. Grievance Appellate Committee (GAC): If unresolved, users can escalate to the GAC under Rule 3A of the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
3. Online Gaming Authority: The Authority acts as the final appellate body. It can overturn prior decisions, issue directions, or impose penalties for non-compliance.

This layered model mirrors what is used for social media intermediaries, thereby ensuring transparency and accountability in user grievance handling.

9. Offences Under the PROG Act (Already Law)

While the Draft Rules are procedural, the parent Act already prescribes criminal penalties for key offences:

All such offences are cognisable and non-bailable, meaning authorities can arrest without warrant and courts cannot automatically grant bail. The Government can also block access to illegal gaming sites or apps under the Information Technology Act, 2000.

10. What Founders Should Take Away

• This is not a ban on gaming. It is a structured framework separating legitimate e-sports and social gaming from illegal betting.
• Voluntary registration is your compliance shield. It gives credibility and ensures your product is publicly listed as “legitimate”.
• Transparency is key. Be ready to disclose your revenue model, age filters, and grievance redressal setup.
• User protection is central. If your game engages minors or collects payments, build age verification, parental controls, and opt-out mechanisms early.
• Expect digital-first enforcement. The Authority will use online submissions, virtual hearings, and electronic notices, similar to SEBI or TRAI workflows.

In Summary

The Draft Promotion and Regulation of Online Gaming Rules, 2025 are not yet law, but they show where India is headed towards a clear, single-window regulation that balances innovation with user protection.

They legitimise e-sports and social gaming as part of India’s digital economy, while drawing a hard line against money gaming and gambling-like mechanics.

For founders, this is both a compliance signal and an opportunity. Start aligning your business model, payment structure, and content policies now, so when these Rules are notified, your platform is already compliant, transparent, and ready to scale under the new legal regime.