After being passed in the Parliament, Ministry of Electronics and Information Technology (MeitY) has now released the draft rules of the Promotion and Regulation of Online Gaming Rules, 2025. The Indian government says that this draft is open for public consultation until October 31. This new bill aims to build a secure ecosystem for esports and social games while imposing a nationwide crackdown on real money games (RMGs) to shield users, especially youth, from addiction, financial distress, and illicit activities. The bill looks to build a national framework around online gaming, a structure that prioritises innovation over exploitation.
After studying the draft of the new Online Gaming Bill, here are 10 key takeaways:
1. Complete Ban on Online Money Gaming
The Act prohibits all forms of online money games where users pay fees or deposit money expecting monetary returns. This applies to both skill-based and chance-based games, effectively banning real-money gaming platforms across India.
2. Criminal Penalties with Imprisonment
Offering online money gaming services can lead to imprisonment up to 3 years and fines up to Rs. 1 crore. Repeat offenders face mandatory minimum sentences of 3 years, extendable to 5 years, with fines between Rs. 1-2 crores.
3. Advertisement Ban with Strict Penalties
Any advertisement promoting online money games is prohibited across all media. Violations can result in 2 years imprisonment and Rs. 50 lakh fine, with enhanced penalties for repeat offenses.
4. Financial Transaction Blockade
Banks and financial institutions are prohibited from processing any transactions related to online money gaming services. Violations attract the same penalties as offering such services - up to 3 years imprisonment and Rs. 1 crore fine. The government has offered a 180-day grace period for refunds of pre-Act deposits to ease the transition.
5. Establishment of Online Gaming Authority of India (OGAI)
At the Act's core is the establishment of the Online Gaming Authority of India (OGAI), a quasi-judicial body headquartered in the National Capital Region, chaired by a MeitY Additional Secretary and including representatives from key ministries like Information and Broadcasting, Youth Affairs and Sports, and Financial Services. With civil court-like powers—including summoning witnesses, seizing evidence, and conducting inquiries—the OGAI will classify games as recreational, educational, or skill-based; enforce age-appropriate ratings; and maintain a National Online Social Games and E-sports Registry. It can suspend or cancel registrations, levy penalties up to ₹10 lakh, and adjudicate grievances within 30 days, with appeals to a dedicated tribunal.
6. Recognition of E-Sports as Legitimate Sport
E-sports are officially recognised as competitive sports under the National Sports Governance Act 2025. These will be registered with a designated Authority and promoted through training academies, research centers, and incentive schemes. The Central Government must develop guidelines, training academies, incentive schemes, and awareness campaigns to elevate esports as a legitimate sport, coordinating with states and federations. E-sports, defined as organised, rule-governed multiplayer competitions recognized under the National Sports Governance Act, 2025, will integrate into multi-sport events, with prizes limited to performance-based rewards excluding bets.
7. Extra-Territorial Application
The law applies not only within India but also to online money gaming services operated from foreign jurisdictions targeting Indian users, addressing offshore platforms that previously bypassed domestic regulations.
8. Cognizable and Non-Bailable Offenses
Offering online money gaming services and facilitating financial transactions for such services are cognizable and non-bailable offenses, allowing police to arrest without warrant.
9. Promotion of Social and Educational Gaming
The Act encourages online social games offered purely for entertainment, recreation, or skill development through subscription or one-time fees (not stakes). The government will create platforms to support their development and distribution. Social games, focused on entertainment, recreation, or skill-building, require OGAI registration for up to five years, disclosing details like target demographics, revenue models (e.g., subscription fees, not stakes), and compliance assurances. Unregistered offerings become unlawful, curbing unregulated content.
10. Website Blocking Powers
The government can block access to any website or computer resource offering online money gaming services under Section 69A of the IT Act, providing a swift mechanism to shut down non-compliant platforms.
This blanket ban targets predatory platforms like online poker, rummy, and fantasy sports that have proliferated via mobile apps and the internet, often from offshore bases evading state laws. The biggest stakeholders that took the hit because of the bill are companies like Dream 11 and Winzo. Ever since the announcement, these companies have pivoted to ad-free, skill-focused models.
