The Ministry of Electronics and Information Technology (MeitY) has released the Draft Promotion and Regulation of Online Gaming Rules, 2025, aimed at building a transparent, accountable, and growth-oriented framework for India’s burgeoning online gaming industry.

The rules, framed under the Promotion and Regulation of Online Gaming Act, 2025 (PROG Act), follow the legislation’s approval by Parliament and Presidential assent on August 22. The Act is designed to create a uniform national structure for the sector, encouraging legitimate formats of e-sports and online social games while explicitly prohibiting exploitative and harmful money-based games.

A key provision under the draft rules is the establishment of the Online Gaming Authority of India, a statutory body with powers comparable to a civil court. The Authority will be responsible for determining whether a game qualifies as an online money game, registering legitimate e-sports and social games, monitoring compliance, and imposing penalties in cases of violations. It will also serve as the final appellate authority for user grievances under a proposed three-tier redressal system.

The rules also set out clear mechanisms for game registration and recognition. For e-sports titles to be officially recognized, they must first receive approval under the National Sports Governance Act, 2025. Online game service providers can apply for digital registration, and the Authority will be mandated to take a decision within 90 days. Once granted, a certificate of registration will remain valid for up to five years, subject to compliance and renewal.

The draft framework further outlines provisions for penalties against non-compliant operators, with fines determined by the scale of unlawful gains, the harm caused to users, and repeat violations. To protect consumer interests, the rules also propose a transition window of 180 days for companies to return user funds collected before the Act came into force.

By entrusting the Ministry of Youth Affairs and Sports with the promotion of e-sports and the Ministry of Information and Broadcasting with oversight of online social games, the government has signaled its intent to distinguish between competitive, skill-driven formats and casual recreational games. Industry stakeholders say the clarity could encourage responsible growth while shielding users from predatory practices.

Officials said the draft rules represent an attempt to balance innovation and consumer protection, at a time when India’s online gaming sector is projected to see exponential growth. Once finalized, the framework is expected to position India as a global leader in responsible and regulated online gaming.