India Introduces Draft Online Gaming Rules: OGAI Regulator Proposed to Ban Real Money Gaming

The Ministry of Electronics and IT has released comprehensive draft regulations for online gaming in India, proposing the establishment of the Online Gaming Authority of India (OGAI) as a dedicated regulator. The rules aim to implement the PROG Act 2025, which bans real money gaming platforms while permitting social games and e-sports, with strict penalties for violations and a structured grievance redressal system to protect users from addiction and financial harm.

Centre Releases Draft Online Gaming Rules, Proposes New Regulator: Key Takeaways

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The Ministry of Electronics and IT (MeitY) has unveiled draft regulations for online gaming, introducing the establishment of the Online Gaming Authority of India (OGAI) as a specialized regulatory body. Released on Thursday, these draft rules are available for public feedback until October 31.

The regulations aim to implement the Promotion and Regulation of Online Gaming (PROG) Act, 2025, which prohibits real money gaming (RMG) platforms including online poker, rummy, and fantasy sports, while allowing social games and e-sports to continue operating.

The proposed Online Gaming Authority of India will be structured as a corporate entity based in Delhi-NCR, possessing perpetual succession and a common seal. This authority will have rights to purchase and dispose of property, form contracts, and engage in legal proceedings under its own name.

The OGAI will be empowered to function digitally, capable of calling and questioning individuals under oath through technological means without requiring in-person attendance. Its membership will comprise officials from the IT Ministry, Information & Broadcasting Ministry, Youth Affairs Ministry, financial regulators, and legal specialists.

Responsibilities of the authority will include overseeing registration and certification processes for social games and e-sports, maintaining a national database of approved games, and determining whether games qualify as lawful or betting-based. Registration is compulsory, valid for periods up to five years, and essential for advertising or operating gaming platforms.

A comprehensive grievance resolution mechanism will be established, allowing users to escalate unaddressed complaints first to an appellate committee and subsequently to the authority, which must resolve issues within a 30-day timeframe.

The draft regulations explicitly prohibit betting-based online games, defined as those involving monetary stakes, wagering, or prizes convertible to cash. Violations are classified as serious non-bailable offenses, with potential liability extending to all employees of offending companies.

The PROG Act outlines severe penalties for violations. Offering online money gaming can result in imprisonment up to three years and fines up to Rs 1 crore, while advertising such platforms may lead to two years' imprisonment and fines up to Rs 50 lakh.

Authorized officials will have powers to search premises, seize materials, and make arrests without warrants. Additionally, the government may block access to non-compliant websites under Section 69A of the IT Act, according to various reports.

Regulatory oversight will be distributed across ministries, with e-sports falling under the Ministry of Youth Affairs and social games under the Ministry of Information & Broadcasting. MeitY will retain overall regulatory authority. These regulations are designed to safeguard users, especially young players, from addiction, financial harm, and illegal activities, while creating a structured and secure environment for skill-based and social gaming.

Source: https://www.ndtv.com/india-news/centre-releases-draft-online-gaming-rules-proposes-new-regulator-key-takeaways-9388409