Centre Issues Draft Rules for Online Gaming Regulation Under PROG Act, 2025

The Centre on Thursday notified the draft Promotion and Regulation of Online Gaming (PROG) Rules, 2025, outlining a regulatory framework under the recently enacted PROG Act that bans online money games. The electronics and IT ministry has invited stakeholder comments until October 31.

Originally slated for release without consultation, officials said the draft was opened for feedback following industry requests.

Key provisions include:

1. Online Gaming Authority of India
   A new statutory regulator will be set up with powers akin to a civil court. It will register social games and e-sports, maintain a national registry, and decide whether offerings qualify as permissible games. Any game involving wagering, stakes or convertible winnings will be deemed illegal. The authority can also suspend registrations, levy penalties, and direct banks to block unlawful platforms.

2. Structure and Powers
   Based in NCR, the authority will be chaired by an IT ministry officer of at least joint secretary rank, with members from the I&B, sports and finance ministries. It will have quasi-judicial powers to summon individuals, examine evidence and issue binding orders.

3. Registration & Grievance Redressal
   All e-sports and social games must register with the authority; certificates will be valid for up to five years. Platforms must set up grievance redressal systems, with appeals escalating to the authority, which must decide cases within 30 days.

4. Transitional Clause for User Funds
   Funds collected before enforcement may be refunded by banks within 180 days without being treated as support for illegal gaming.

5. Penalties
   Offering online money games could draw up to three years in jail and fines of ₹1 crore. Advertising such platforms could mean two years’ imprisonment and fines up to ₹50 lakh. Offences under sections 5 and 7 of the Act will be cognizable and non-bailable, with officers empowered to search, seize and arrest without warrant.

The draft rules also extend legal protection to enforcement officers and clarify that financial institutions cannot enable transactions linked to online money games.