TALKESPORT

The Centre is set to notify the final rules under the Promotion and Regulation of Online Gaming (PROG) Act, 2025, with key provisions from the October draft eased to make the framework more industry-friendly, according to officials in the IT ministry.

Officials said the rules are in the final stages and will be notified soon, marking the operational rollout of India’s centralised regulatory framework for online gaming.

Registration for Social Games Made Voluntary

A key change from the October draft relates to the registration of online social games. The earlier draft had created ambiguity, with one provision indicating that such games would require registration with the proposed Online Gaming Authority of India, while another suggested they could operate without it.

The final rules remove this ambiguity by making registration fully voluntary for online social games.

“Registration has now been made fully voluntary for online social games,” an official told Hindustan Times, adding that the change reflects feedback from industry stakeholders who had flagged concerns around compliance complexity.

Officials said the government’s approach is aimed at avoiding friction for non-monetised gaming platforms. The relaxation is intended to support broader industry growth while ensuring that restrictions remain focused on monetised formats.

Esports to Continue Under Mandatory Registration

In contrast, esports titles will continue to require mandatory registration, as proposed in the draft rules.

Officials clarified that certain e-sports formats could still fall under the category of money gaming depending on how they are structured. In such cases, the determination will be made by the regulatory authority, which will have the power to classify games and initiate action where required.

Three-Tier Classification Retained

The final rules retain the core classification framework outlined in the draft, dividing games into three categories: online social games, e-sports, and online money games.

Officials explained that social games may generate revenue through subscriptions or similar models but cannot involve payouts to users. E-sports formats may include prize pools with defined inflows and outflows, provided they are recognised as sporting events. Online money gaming, where users stake money with the expectation of winnings, remains prohibited under the law.

Central Authority to Oversee Classification and Enforcement

The broader regulatory structure remains largely unchanged, with provisions for the creation of an Online Gaming Authority of India.

Officials said the authority will have quasi-judicial powers similar to a civil court, including the ability to conduct inquiries, summon individuals, and adjudicate disputes. It will be responsible for determining the classification of games, addressing user complaints, and enforcing compliance under the law.

The regulatory process is expected to be fully digital, with the portal for registrations and compliance nearing readiness.

Law Targets Real-Money Gaming

The PROG Act 2025, passed in Parliament on August 21, 2025, and receiving Presidential assent the following day, is designed to prohibit online money gaming.

The law provides for penalties of up to three years’ imprisonment and fines of up to ₹1 crore for facilitating such platforms. Advertising online money gaming services carries penalties of up to two years’ imprisonment and fines of up to ₹50 lakh.

The IT ministry had released the draft rules on October 2, 2025, seeking public and industry feedback until October 31. The final version incorporates revisions based on those consultations.

Final Rules to Shape Industry Framework

With notification expected shortly, the rules are set to define the regulatory structure for online gaming in India, affecting developers, platforms, and esports operators.

While the framework retains strict provisions around money gaming, the relaxation for social games signals a calibrated approach as the government moves to balance regulation with industry growth.