New Delhi: In a significant move aimed at boosting India’s digital gaming ecosystem, the Centre is set to notify the final rules under the Promotion and Regulation of Online Gaming Act, 2025 (PROG Act), introducing key relaxations to make the regulatory framework more industry-friendly.
Big Relief: Voluntary Registration for Social Games
According to officials from the Ministry of Electronics and Information Technology, one of the most notable changes from the draft rules is that registration for online social games will now be completely voluntary.
Earlier, the October 2025 draft had created confusion, with provisions appearing to both mandate and exempt such registration. The final rules resolve this ambiguity, following strong feedback from gaming companies seeking a simpler compliance structure.
Officials clarified that the government’s intent is to encourage non-monetised gaming activity without creating unnecessary regulatory hurdles. “If companies are offering social games without real-money elements, we don’t want to create friction,” an official said, calling it a major relaxation.
Three Categories of Online Games Defined
The regulatory framework continues to classify online games into three clear categories:
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Online Social Games:
No monetary winnings allowed. Revenue can be generated through subscriptions or in-app purchases, but no payouts to users. -
E-Sports:
Registration remains mandatory. Prize money is allowed but must be pre-declared and linked to recognised sporting formats. Some e-sports formats may still fall under scrutiny if they resemble money gaming. -
Online Money Gaming:
Completely banned under the law. These include platforms where users stake money with the expectation of winnings.
Online Gaming Authority to Oversee Sector
The rules will also establish the Online Gaming Authority of India, a central body with quasi-judicial powers similar to a civil court.
The authority will:
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Determine the classification of games
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Address user complaints
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Take enforcement action against violations
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Summon individuals and conduct inquiries
Officials said the authority will play a critical role in ensuring compliance and resolving ambiguities, especially in borderline cases between e-sports and money gaming.
Fully Digital Compliance System
The entire regulatory process is expected to be digital, with an online portal nearly ready for rollout. This is aimed at streamlining approvals, registrations, and grievance redressal mechanisms.
Strict Penalties for Violations
The PROG Act enforces a strict ban on online money gaming platforms:
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Up to 3 years imprisonment and ₹1 crore fine for operators
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Up to 2 years imprisonment and ₹50 lakh fine for advertising such platforms
The legislation was passed by Parliament on August 21, 2025, and received Presidential assent a day later.
Industry Impact
The relaxed approach towards social gaming is expected to:
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Encourage startups and innovation
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Reduce compliance burden
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Position India as a global gaming hub
At the same time, strict controls on money gaming underline the government’s focus on consumer protection and responsible gaming practices.
