The Centre is preparing to notify the final rules under the Promotion and Regulation of Online Gaming (PROG) Act, 2025, with several provisions relaxed to make the framework more industry-friendly, according to officials from the IT ministry.
One of the key changes from the October draft is that registration for online social games will now be completely voluntary. Earlier, there was confusion due to conflicting provisions—one suggesting mandatory registration with the Online Gaming Authority of India, while another allowed such games to operate without it. This ambiguity has now been resolved in favour of the industry.
Officials said the decision follows extensive consultations with stakeholders, who had called for a simpler and less burdensome process. The government’s aim is to encourage growth in the gaming sector without discouraging non-monetised activities. As long as platforms are not involved in money-based gaming, they will not face unnecessary regulatory hurdles.
However, registration will remain mandatory for e-sports platforms. Authorities noted that some e-sports formats could fall under money gaming depending on their structure, and the regulator will assess such cases accordingly.
The framework continues to divide online gaming into three categories: social games, e-sports, and money gaming. Social games can generate revenue through subscriptions or similar models but cannot offer payouts to users. E-sports may involve prize money, provided they are recognised as sporting events. In contrast, online money gaming—where users stake money and can win cash—remains strictly prohibited.
The overall regulatory structure remains largely unchanged. An Online Gaming Authority of India will be established with quasi-judicial powers, including the ability to conduct inquiries, summon individuals, and adjudicate disputes. It will also determine the classification of games and act on user complaints.
Officials added that the entire regulatory process will be digital, with an online portal for registrations and compliance expected to be operational soon.
The PROG Act, aimed at banning pay-to-play models, was passed by Parliament on August 21, 2025, and received Presidential assent a day later. The law prescribes strict penalties, including up to three years of imprisonment and fines of up to ₹1 crore for facilitating illegal money gaming. Advertising such platforms can attract up to two years in jail and fines of up to ₹50 lakh.
The draft rules were released on October 2, 2025, with feedback invited from stakeholders until October 31. The final version is now set to be notified shortly.
