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The Centre has created a strict new legal framework for online money games under the draft rules of the PROG Act (Promotion and Regulation of Online Gaming). According to the proposal, violations can be non-bailable, holding the entire staff of the concerned company “liable for contraventions”. If it comes into effect, the new law could mark a turning point for India’s digital gaming ecosystem.
The Ministry of Electronics and Information Technology (MeitY) issued the draft under the PROG Act 2025, for the legitimate use of e-sports and online social games while prohibiting exploitative money-based formats.
According to the draft rules, “any breach of provisions relating to online money games would attract action under Section 14 of the PROG Act, making the offence cognisable and non-bailable. The liability would extend not only to company directors but also to all officers and employees connected with the conduct of the game.”
"Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023, offences under section 5 and section 7 shall be cognizable and non-bailable," according to the draft rules.
Meanwhile, Section 5 under the draft rules prohibits entities from offering, aiding, abetting, inducing, or engaging in online money games and online money gaming services. Section 7 bars banks, financial institutions, or any other person from facilitating financial transactions for any online money gaming service.
“The proposed rules lay down a transparent regulatory framework for the structured growth of e-sports and social gaming ecosystems, and provide a strong grievance redressal mechanism to safeguard users,” the ministry said in a statement.
“If a game is found to involve stakes or wagers, the provider will be directed to cease operations immediately,” the ministry said, adding, “the proposed framework empowers the Online Gaming Authority of India to determine whether a game qualifies as an online money game, prohibit its offering or advertisement, and initiate penal action.”
Also Read: Online Gaming Bill 2025 Explained: Check Banned Games and Penalties
The draft rules set up a 3-tiered grievance redressal system, starting with the registered online game service provider’s internal mechanism. If any user is dissatisfied with the platform, they can first appeal to the Grievance Appellate Committee (established under rule 3A of the IT Intermediary Rules, 2021) and then to the gaming authority.
Certificates of registration issued by the Government for the gaming entity will remain valid for five years unless suspended or cancelled for violations. The government has invited feedback and comments on the draft rules by October 31.
This initiative sends a strong message about responsible gaming. Everyone is now waiting for the final bill and the amendments it will bring. The new bill might change the future of online gaming in India completely.
