The Ministry of Electronics and IT (MeitY) unveiled draft rules for online gaming under the Promotion and Regulation of Online Gaming (PROG) Act, 2025, proposing plans to establish the Online Gaming Authority of India (OGAI) as the sector’s key regulator.
The proposed framework defines the process for game registration, sets up a three-tier grievance redressal mechanism, and lays down compliance obligations for operators.
The draft framework aims to operationalise the Promotion and Regulation of Online Gaming (PROG) Act, 2025, which bans all forms of online real-money games, including poker and fantasy sports.
However, the act allows only online social games and e-sports, aiming to promote and boost the growth of social gaming and e-sports in India.
As proposed by MeitY, the Online Gaming Authority of India (OGAI) is envisioned as a corporate body with powers similar to a civil court; it will have the power to classify games, register operators, issue directives, and impose penalties for non-compliance. It will consist of a chairperson and five members drawn from various government ministries.
Violations under the proposed framework would be treated as non-bailable offenses, with company personnel held accountable for facilitating any breaches.
What Does It Mean for Gaming Companies?
For gaming companies operating in India, the draft Promotion and Regulation of Online Gaming Rules, 2025, introduces a stricter compliance framework and greater regulatory oversight. Here’s what the new rules imply for the industry:
1. Mandatory Updates on Game Changes
Once a game is registered as an online social game or an e-sport, companies must inform the Online Gaming Authority of India (OGAI) about any “material changes” to the game. This includes updates to gameplay features, monetization methods, or revenue models. Failure to disclose such changes could lead to cancellation of registration.
2. Detailed Disclosures Required
To register a game in India, companies will need to submit extensive information such as the game’s name, description, category, target audience, revenue model, safety features, and internal grievance redressal mechanism. They must also provide an undertaking confirming that no prohibited activities will be undertaken under Indian law.
3. Regulatory Oversight and Probes
The OGAI will have the authority to initiate investigations against games it deems harmful to users or non-compliant with the Act. It can also issue directions related to advertisements and financial transactions involving such games or platforms.
4. Penalties for Non-Compliance
Any game found violating the Online Gaming Act may face penalties, including suspension or cancellation of registration. When determining penalties, the OGAI will consider factors like the extent of financial gain, the number of users affected, and the severity of the violation.
5. Right to Appeal
Gaming service providers that disagree with OGAI’s decisions can appeal to the Appellate Authority, headed by the Secretary of the IT Ministry, offering a formal channel for redressal.
What Does It Mean for Gamers?
The draft Promotion and Regulation of Online Gaming Rules, 2025, and the creation of the Online Gaming Authority of India (OGAI) have significant implications for players in India:
1. Consumer Protection and Grievance Mechanism
Gamers will have access to a structured grievance redressal system to report cheating, account bans, fraud, or unfair practices. In simple terms, gamers will have the ability to question the gaming companies with the help of the OGAI. OGAI’s civil court-like powers allow it to conduct inquiries and enforce compliance on gaming companies.
2. Safer and Verified Games
Only registered and certified games will be legally allowed to operate. Players can be assured that the games they play are verified by OGAI, reducing the risk of scams or unfair practices.
3. Recognition of Esports and Social Gaming
Registered esports and social games will gain official recognition, which could benefit competitive players, teams, and streamers by providing legitimacy and clearer rules for tournaments and earnings.
4. Clear Distinction Between Skill and Money Games
The OGAI will determine whether a game qualifies as a prohibited money game. This ensures players know which games are legally allowed and which involve real-money betting that is banned under the Act.
5. Age and Spending Safeguards
Players, especially minors, will be protected through stricter age verification, user safety measures, and potential limits on gameplay or spending to prevent addiction.
The draft rules are currently open for public consultation until October 31, giving gamers, industry players, and policymakers a chance to share their views.
If implemented, these measures could reshape the future of India’s online gaming landscape, ensuring a safer and more structured environment for all. Keep following Game Insider Blog, to stay connected with the gaming world.
Sources – Business Standard & Indian Express