After being passed in Parliament, the Ministry of Electronics and Information Technology (MeitY) has now released the draft rules for the Promotion and Regulation of Online Gaming Rules, 2025. The Indian government has announced 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). The objective is to shield users, especially the youth, from addiction, financial distress, and illicit activities. The bill seeks to establish a national framework around online gaming, prioritizing 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 ban applies to both skill-based and chance-based games, effectively outlawing real-money gaming platforms across India.
### 2. Criminal Penalties with Imprisonment
Offering online money gaming services can lead to imprisonment for up to 3 years and fines up to Rs. 1 crore. Repeat offenders face mandatory minimum sentences of 3 years, extendable to 5 years, along with fines ranging from Rs. 1 to 2 crores.
### 3. Advertisement Ban with Strict Penalties
Any advertisement promoting online money games is prohibited across all media platforms. Violations may result in up to 2 years of imprisonment and a fine of Rs. 50 lakh, 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. Violators face penalties equivalent to those for offering such services—up to 3 years imprisonment and fines of Rs. 1 crore. To ease the transition, the government has provided a 180-day grace period for refunds of deposits made before the Act comes into force.
### 5. Establishment of Online Gaming Authority of India (OGAI)
At the core of the Act is the creation of the Online Gaming Authority of India (OGAI), a quasi-judicial body headquartered in the National Capital Region. It will be chaired by a MeitY Additional Secretary and include representatives from key ministries such as Information and Broadcasting, Youth Affairs and Sports, and Financial Services.
OGAI will possess civil court-like powers—including summoning witnesses, seizing evidence, and conducting inquiries. Its responsibilities include classifying games as recreational, educational, or skill-based; enforcing age-appropriate ratings; and maintaining a National Online Social Games and E-sports Registry. The Authority can suspend or cancel registrations, levy penalties up to ₹10 lakh, and adjudicate grievances within 30 days. Appeals will be directed to a dedicated tribunal.
### 6. Recognition of E-Sports as a Legitimate Sport
E-sports are officially recognized as competitive sports under the National Sports Governance Act, 2025. They will be registered with a designated authority and promoted through training academies, research centers, and incentive schemes.
The Central Government is tasked with developing guidelines, training academies, incentive programs, and awareness campaigns to elevate esports as a legitimate sport, coordinating efforts with states and federations. Defined as organized, rule-governed multiplayer competitions, e-sports will be integrated 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. This clause addresses offshore platforms that have previously bypassed domestic regulations.
### 8. Cognizable and Non-Bailable Offenses
Offering online money gaming services and facilitating related financial transactions are cognizable and non-bailable offenses. This allows law enforcement agencies to arrest offenders without a warrant.
### 9. Promotion of Social and Educational Gaming
The Act encourages online social games offered purely for entertainment, recreation, or skill development. These games may operate on subscription or one-time fee models but cannot involve stakes.
The government will create platforms to support the development and distribution of such games. Social games focused on entertainment, recreation, or skill-building must register with OGAI for up to five years. Registration requires disclosure of key details such as target demographics, revenue models, and compliance assurances. Unregistered offerings will be deemed unlawful, helping to curb unregulated content.
### 10. Website Blocking Powers
Under Section 69A of the IT Act, the government can block access to any website or computer resource offering online money gaming services. This provides 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 operating from offshore bases to evade state laws.
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### Impact on Industry Stakeholders
The biggest stakeholders affected by the bill include companies like Dream11 and WinZO. Since the announcement, these companies have shifted their business models toward ad-free, skill-focused offerings to comply with the new regulations.
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The draft rules for the Promotion and Regulation of Online Gaming Rules, 2025, reflect the government’s commitment to regulating the booming online gaming industry, protecting users from harms associated with real money gaming, and fostering a safer, innovation-driven environment for esports and social gaming in India.
The government invites public feedback until October 31, encouraging stakeholders and citizens to participate in shaping the future of online gaming in the country.
https://www.freepressjournal.in/tech/indian-govt-releases-draft-of-online-gaming-act-2025-welcomes-feedback-till-october-31-10-key-important-points-from-the-bill
