MeitY Unveils Draft Rules to Regulate and Promote Online Gaming Sector

The Draft Promotion and Regulation of Online Gaming Rules, 2025 (“Draft Rules”) have been framed by the Ministry of Electronics and Information Technology (“MeitY”) under Section 19 of the Promotion and Regulation of Online Gaming Act, 2025, which received Presidential assent and was published in the Gazette of India on 22 August 2025. MeitY is empowered to notify the Rules’ commencement date and to establish the Online Gaming Authority of India (“OGAI”) as a corporate body vested with civil-court powers to oversee the sector’s regulation. The Draft Rules aim to promote legitimate e-sports, to be administered by the Ministry of Youth Affairs and Sports, and online social games, to be administered by the Ministry of Information and Broadcasting, while expressly prohibiting online money games requiring entry fees or deposits with winnings redeemable for cash. A unified digital framework and a new regulator, the Online Gaming Authority of India (OGAI), will oversee the rapid expansion of e-sports and online social games, while imposing a strict ban on exploitative money-based gaming formats. Stakeholders have until 31 October 2025 to submit rule-wise comments. The Draft Rules lay down comprehensive definitions, processes, and enforcement mechanisms. Online games fall into two broad categories: e-sports and social games, which may register voluntarily or mandatorily, and online money games, which are expressly prohibited. Money games are defined by the requirement of entry fees, deposits, or wagers, with winnings redeemable for cash. Legitimate e-sports and social gaming ventures must apply for digital registration and await OGAI’s decision which is due within 90 days, before continuing operations. Certificates of registration will carry a five year validity, subject to suspension or cancellation in the event of false disclosures, unapproved revenue-model changes, or repeated breaches.

OGAI shall be constituted as a corporate body vested with civil-court powers of inquiry, evidence collection, and inspection. Its governing board comprises an Additional Secretary from MeitY as Chairperson, five ex-officio members from relevant ministries (Youth Affairs and Sports; Information and Broadcasting; Law; Finance; and Home), and a Secretary. The Authority will determine game classifications, maintain a national registry, issue binding guidelines, and levy penalties. Enforcement proceedings will be conducted digitally, targeting resolution within 90 days. Penalties will be calibrated based on unjust gains, user harm, repeat offenses, and gravity, and unpaid fines will be recoverable as land-revenue arrears.

To address consumer grievances, providers must establish a three-tier redressal mechanism: an in-house complaints channel, escalation to the Grievance Appellate Committee under the IT Intermediary Guidelines Rules, and final appeals to OGAI. Each tier is bound by a 30-day resolution deadline. Transitional provisions require operators to refund user funds collected before enforcement, within 180 days after the rules take effect. OGAI is also mandated to publish an annual audited report to the Central Government within 180 days of each financial-year end. MeitY has also issued an explanatory note detailing the Rules’ objectives, definitions, and procedural guidelines. The rules aim to balance rapid sectoral growth with user protection, transparent governance, and accountability. Industry participants, e-sports federations, content developers, legal and compliance teams, and regulatory advisors are urged to review the Draft Rules and submit detailed feedback by 31 October 2025 via [email protected].

 

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