India’s Online Gaming New Regulations: Closer Look at Draft Rules

The Indian online gaming industry is witnessing a transformative phase in 2025. On October 2, the Ministry of Electronics and Information Technology (MeitY) released the Draft Promotion and Regulation of Online Gaming Rules, 2025, framed under Section 19 of the newly enacted Promotion and Regulation of Online Gaming Act, 2025 (PROG Act). The Act, which received the President’s assent and was notified in the Gazette of India on 22nd August 2025, it provides a uniform national framework for promoting legitimate online gaming, including e-sports and online social games, while prohibiting exploitative real-money games.

These draft rules aim to encourage structured growth of legitimate gaming ecosystems, set up robust regulatory oversight and establish clear mechanisms for player protection, compliance and grievance redressal.

Key Features of the Draft Rules

1. Part I – Preliminary

Part I provides the legal foundation for the rules, including the timeline for their enforcement as appointed by the Central Government. It also defines critical terms such as “Act,” “Applicant,” “Grievance,” and “online game service provider,” ensuring clarity and uniform interpretation.

2. Part II – Promotion of E-sports and Online Social Games

This section outlines the roles of government ministries in promoting gaming. The Ministry of Youth Affairs and Sports is responsible for e-sports, while the Ministry of Information and Broadcasting oversees online social games, including age-appropriate content categorization for recreational, educational and skill-development purposes. Registration with the Online Gaming Authority of India (the Authority) is mandatory for e-sports, while voluntary for social games.

3. Part III – Authority on Online Gaming

The draft rules establish the Online Gaming Authority of India as a corporate body with powers similar to a civil court. The Authority consists of a chairperson and five ex-officio members from various ministries. It can determine whether a game qualifies as an online money game, register games, issue directions and impose penalties. Its decisions can be appealed to the Appellate Authority within thirty days.

4. Part IV – Determination, Recognition, Categorization and Registration

The Authority handles digital applications for registering e-sports and online social games, requiring information on game descriptions, target age groups and revenue models. E-sports must first be recognized under the National Sports Governance Act, 2025. The Authority decides whether a game qualifies as an online money game and can order its suspension if prohibited. Registration decisions are generally time-bound to 90 days.

5. Part V – Certificate of Registration

The Authority issues a Certificate of Registration valid for up to five years. Providers must report any material changes affecting a game’s classification. Certificates can be suspended, cancelled or voluntarily surrendered for reasons such as repeated violations, misrepresentation or the game becoming an online money game.

6. Part VI – Imposition of Penalty

The Authority may impose penalties for non-compliance, either suo motu or based on complaints. Penalties consider factors like financial gain from violations, loss to users and repeat offenses. The Authority may also suspend or prohibit the game if necessary.

7. Part VII – Grievance Redressal Mechanism

A three-tier system is established to resolve user complaints: the online game service provider’s internal mechanism, the Grievance Appellate Committee under the IT Intermediary Rules, 2021 and finally the Authority. The Authority’s decision will be final, with the powers to issue directions and enforce compliance.

8. Part VIII – Miscellaneous

This section addresses the various administrative matters, including a transitional provision allowing repayment of the user funds collected before the Act’s enforcement for 180 days. It also mandates that the Authority submit an annual report of its activities to the Central Government.

Consumer Protection Measures

The draft rules prioritize player safety and responsible gaming. Platforms must implement robust age verification to prevent underage access, self-exclusion tools, deposit limits and playtime restrictions. Transparent display of terms, clear rules and effective grievance redressal mechanisms ensure a fair and secure gaming environment.

Industry Implications

The ban on online money games pushes platforms to explore alternative models such as free-to-play games, social games and e-sports tournaments. While the transitional period allows players to withdraw deposits smoothly, enforcement remains a critical challenge. Platforms that adapt strategically can capitalize on India’s growing gamer base and digital ecosystem.

Public Consultation

The Stakeholders, including players, gaming companies and industry experts, are invited to provide their feedback on the draft rules until the end of October 2025. This ensures a collaborative approach in refining licensing, consumer protection, penalties and game classification frameworks, fostering a balanced regulatory environment.

Conclusion

The draft of Promotion and Regulation of Online Gaming Rules, 2025, marks a major milestone in the India’s journey toward a regulated gaming ecosystem. By emphasizing the social games, e-sports and consumer protection, the rules create new opportunities for the purpose of innovation while enforcing transparency and accountability. As the gaming landscape evolves, the public consultation process will play a crucial role in shaping a safer, more responsible and inclusive industry for millions of players. To ensure your legal compliance, do contact to Remind Legal, our experts will help you process smooth compliances.