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The Promotion and Regulation of Online Gaming Act, 2025 (PROG Act), passed by Parliament in August to regulate online money gaming, is now nearing its operational phase. Government sources indicate that the Ministry of Electronics and Information Technology (MeitY) expects to finalise and notify the detailed rules by mid-November 2025. These rules will serve as the implementational backbone of the law, setting definitions, registration norms, compliance requirements and penalties.
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Key Features Under The Framework
The rules are expected to establish the Online Gaming Authority of India (OGAI), a dedicated regulator tasked with classifying games into categories such as money games, social games and e-sports. OGAI will maintain a national registry of games, oversee advertisements, monitor transactions involving online gaming platforms and coordinate with the Ministry of Home Affairs (MHA) and the Ministry of External Affairs (MEA) to tackle offshore operations. Key expected provisions include:
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Ban on online games involving real monetary stakes whether based on skill or chance.
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Prohibition of payment facilitation or banking transactions linked to such games.
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Heavy penalties for operators, advertisers and facilitators, including up to 3 years imprisonment and ₹1 crore fines.
Industry and Consumer Impact
India’s online gaming sector is estimated to reach multi-billion-dollar scale, yet the government cited risks of addiction, financial distress and money-laundering as reasons for regulation. Once the rules are live, operators of fantasy or real-money gaming platforms may need to re-register, comply with stricter oversight, and limit operations to social gaming or e-sports only. For consumers, the framework promises greater safeguards such as verification norms and a grievance redress mechanism.
Next Steps and Challenges
With feedback on draft rules due by October 31, 2025, the final rules are on track for notification by mid-November. However, tight timelines, industry-pushback and coordination across ministries & states remain challenges. Observers also note that differentiating “games of skill” from “money games,” especially in fantasy formats, may lead to legal battles — the Supreme Court of India is set to hear petitions on the Act on November 4.
In sum, the coming weeks will determine how India balances growth of its gaming industry with consumer protection and regulatory clarity.
