At the core of the draft rules is the Online Gaming Authority of India, envisioned as a statutory corporate body with powers akin to a civil court.
The Centre on Thursday notified the draft Promotion and Regulation of Online Gaming (PROG) Rules, 2025, setting out a comprehensive framework for regulating online gaming under the recently enacted PROG Act that bans online money games.
The ministry of electronics and IT has invited comments and feedback from stakeholders until October 31.
Officials said the draft was initially planned to be issued without consultation. “We changed our minds due to requests from stakeholders,” a ministry official said as reported by HT earlier. Here are 5 key takeaways from PROG act 2025 draft.
1. Creation of Online Gaming Authority of India
At the core of the draft rules is the establishment of the Online Gaming Authority of India, envisioned as a statutory corporate body with powers akin to a civil court, according to the explanatory note issued Thursday.
The authority will register online social games and e-sports, maintain a national registry of approved games, and decide whether a game qualifies as a legitimate offering or an online money game.
Any game involving wagering, stakes or winnings convertible into cash will be deemed an online money game and prohibited. The authority will also have the power to suspend or cancel registrations, impose penalties, and direct banks and service providers to block unlawful platforms.
2. Structure and powers of the regulator
Headquartered in the National Capital Region, the authority will be chaired by an officer of at least joint secretary rank in the IT ministry, equivalent to additional secretary.
As per the draft, it will include three ex officio joint secretary members representing the I&B ministry, the youth affairs and sports ministry, and the financial services department. Two ex officio members at the director level will also be appointed, with at least one possessing legal expertise.
The authority will have quasi-judicial powers, including summoning individuals, examining evidence, and issuing binding orders. A secretary, appointed by the Centre, will assist with day-to-day functions. Non-official experts may be invited and will be paid allowances as per government norms.
3. Registration and grievance redressal
Both e-sports and social games will require compulsory registration with the authority. A certificate of registration will be valid for up to five years.
The absence of certificate will cease the game’s operation, representation or advertisement as a registered offering.
To safeguard users, the rules mandate that platforms provide a grievance redressal system. Users dissatisfied with a platform’s response can appeal first to a grievance appellate committee and then escalate to the authority, which must resolve cases within 30 days.
4. Transitional provision for user funds
The draft includes a transitional clause for funds collected before the Act’s enforcement. Banks or intermediaries may refund amounts due to players without it being deemed support for illegal money gaming. This window will remain valid for 180 days from the date of enforcement.
5. Offences and penalties under the Act
The PROG Act prescribes stringent punishment for violations. Offering online money gaming services may attract up to three years’ imprisonment and fines of up to ₹1 crore. Advertising such platforms could lead to two years’ imprisonment and fines up to ₹50 lakh.
According to the draft, authorised officers will have the power to search, seize and arrest without warrant. It further clarifies: “Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023, offences under section 5 and section 7 shall be cognizable and non-bailable.”
Section 5 prohibits companies and individuals from offering, aiding, abetting, inducing or engaging in online money games. Section 7 restricts banks, financial institutions, or intermediaries from enabling related transactions.
Legal protection has also been extended to officers undertaking searches and seizures under the Act.
The article originally appeared on Hindustan Times
