Real Money Gaming Ban: Key Highlights Of Draft Rules Released By MeitY

The Ministry of Electronics and Information Technology (MeitY) has released the draft rules for the ‘Promotion and Regulation of Online Gaming Act, 2025’ (PROG Act), which bans real money online gaming in the country. 

The rules provide for the regulatory framework for recognition, categorisation and registration of online games, promotion of online social games and esports, powers and functions of the Online Gaming Authority of India, suspension/ cancellation of registration, imposition of penalties against non-compliance, grievance redressal, and more.

The ministry has sought feedback and comments on the rules by October 31.

Here’re the key highlights of the draft rules:

• The Centre, through the youth affairs and sports ministry, will recognise and promote esports, while MeitY will be responsible for the promotion of online social games.
• The Online Gaming Authority of India will be set up for the enforcement of the ‘Promotion and Regulation of Online Gaming Rules, 2025. The Authority will have its head office in Delhi NCR and will have five members, besides the chairperson. All the members will be from the central government.

The Authority will have the following roles and responsibilities:

• Determine whether an online game is an online money game or otherwise and recognise, categorise and register online games upon such determination.
• Maintain and publish a National Online Social Games and E-sports Registry containing details of all registered online social games and esports and a list of online games determined as online money games
• Inquire into complaints relating to an online game that is prejudicial to the interests of users
• Issue directions, orders to persons offering, organising or facilitating any online game, advertisements relating to online game and financial transactions or authorisation of funds towards payment for any online gaming
• Issue guidelines or codes of practice in relation to offering online social games and esports
• Impose penalties in the event of any non-compliance with any direction or order issued by the central government or the Authority
• Cancel or suspend registration of any online social game or esport for violation in accordance with the rules
• Entertain appeals from the decision of the Grievance Appellate Committee or references made to it by the Grievance Appellate Committee
• Coordinate with financial institutions, law enforcement agencies and other agencies of the Centre or state government, authorities or regulators for effective enforcement of the Act, among others.

The rules also specify the criteria on the basis of which the Authority will decide if the application it has received is for an online money game or otherwise. Here’re the key conditions which it will have to assess:

• If the online game involves any element of money or other stakes by whatever name called, including payment of fees, deposit of money or other stakes, or making any purchase during game play at any point of time in the online game and such money is in the nature of a stake or wager
• If the payment of fees or deposits made by users is used as consideration for participating in the online game or is used as stake or wager or a consideration for winning
• If participation in the online game by a user is contingent on or a precondition for participation on a prior deposit of money or other stakes by such user

The draft rules also lay out grievance redressal mechanisms, the rules for imposing penalties, and more.

The development comes more than a month after President Droupadi Murmu gave her assent to the ‘Promotion and Regulation of Online Gaming Act, 2025’. Following the passing of the Act by both the Houses of the Parliament, almost all major online gaming companies, including Dream11, MPL, among others, discontinued their real money gaming offerings.

Most of these companies are now trying out new business models. Besides, gaming companies like Head Digital Works, Games24x7, Gameskraft, among others, have also laid off hundreds of employees over the past month.