The Centre is set to notify the final rules under the Promotion and Regulation of Online Gaming (PROG) Act, 2025, with key provisions eased to make the framework more industry-friendly, two officials in the IT ministry said. For representational purposes only. (AFP File)
A significant change from the October draft is that registration for online social games will be completely voluntary. The industry had flagged ambiguity in the draft rules, with rule 4(2) suggesting that such games would need to register with the Online Gaming Authority of India to operate legally, while rule 4(3) stated that online social games may be offered without registration.
“Registration has now been made fully voluntary for online social games,” one of the officials said. The move follows consultations with industry stakeholders, who had sought a simpler and less burdensome registration process. “Industry feedback was clear that the registration process needed to be eased, and that has been addressed in the final rules,” the official added.
Explaining the rationale, the official said the government does not want to discourage non-monetised gaming activity. “Our approach earlier was to encourage companies to register, but the larger goal is to make India a gaming hub. If companies are offering social games, we don’t want to create friction, as long as they are not operating money gaming platforms,” the official said, calling it a major relaxation.
Registration of e-sport games will, however, remain mandatory, as in the draft rules. One official added that even e-sport games could fall into the money gaming category depending on how they are structured, with the authority tasked with making that determination and taking action where required.
Officials said the framework continues to classify games into three categories — online social games, e-sports, and online money games. “In social games, revenue can come in through subscriptions or similar models, but there can be no payouts to users. In e-sports, there can be inflows and outflows in the form of pre-declared prizes, but these must first be recognised as sporting events. The third category is money gaming, where users stake money and winnings are involved. This is banned,” the official explained.
The broader regulatory architecture remains largely unchanged. The rules will provide for the creation of an Online Gaming Authority of India, with powers akin to a civil court to conduct inquiries and summon individuals.
“There are no major changes to the authority’s powers. It will continue to have quasi-judicial functions,” another official said. The authority will play a central role in determining the nature of games and enforcing the law. “If a platform wants clarity on whether a game qualifies as an online money game, the authority will make that determination. It will also act on complaints from users and step in where violations are found,” the official said.
The entire regulatory process is expected to be digital, and the portal for it is almost ready, one of the officials said.
The PROG Act, aimed at banning pay-to-play models, was passed in Parliament on August 21, 2025, and received Presidential assent on August 22. The law prohibits all online money gaming services, imposing penalties of up to three years’ imprisonment and fines of up to ₹1 crore for facilitators. Advertising such platforms carries penalties of up to two years’ imprisonment and fines of up to ₹50 lakh.
The IT ministry published the draft rules on October 2, 2025, inviting feedback from the public and stakeholders until October 31, 2025.