Why in News?

• The Ministry of Electronics and IT has released draft rules under the Promotion and Regulation of Online Gaming Act, 2025.
• The Act, which received Presidential assent in August 2025, aims to regulate online gaming in India, ensure user safety, and curb societal and security concerns linked to money-based online games.

What’s in Today’s Article?

• Key Provisions of the Draft Rules
• Significance of the Draft Rules and Way Forward
• Conclusion

Key Provisions of the Draft Rules:

• Establishment of the Online Gaming Authority of India:
  • Composition: A chairperson and five members from various government ministries.
  • Powers:
    • Decide whether a game qualifies as an “online money game.”
    • Register online games.
    • Issue directions and impose penalties.
    • Cancel registration in case of material changes (e.g., revenue model shift to betting).
• Scope of regulation:
• Prohibited: All forms of online money games (poker, fantasy sports, wagering).
• Permitted: “Online social games” and e-sports, for purposes like recreation, education, and skill development.
• Registration process:
  • Mandatory for all online game operators.
  • Companies must provide:
    • Revenue model.
    • User safety measures.
    • Proof that revenue comes from ads, subscriptions, or one-time fees (not wagers).
• Penalties and liabilities:
  • Violations classified as non-bailable offences.
  • Entire company staff can be held liable.
  • Penalty quantum to be decided based on:
    • Profits earned through non-compliance.
    • Losses caused to users.
    • Repeated nature of violation.
• Grievance redressal mechanism (3-tiered system):
• Internal redressal by the gaming service provider.
• Appeal to the Grievance Appellate Committee (under IT Intermediary Rules, 2021).
• Appeal to the Online Gaming Authority.
• Role of Ministry of Information and Broadcasting:
  • Issue codes of practice for classification of online social games.
  • Provide guidelines for games related to recreation, education, and skill development.

Significance of the Draft Rules and Way Forward:

• Significance:
  • Addresses security and societal concerns over online gaming.
  • Introduces comprehensive regulation for a growing digital sector.
  • Balances innovation in e-sports and gaming with public safety and consumer protection.
• Way forward:
  • Ensure clarity in defining “online money games” vs. “social games.”
  • Build stakeholder consensus through public consultation (Example, draft rules open for public consultation till October 31).
  • Develop technological tools to monitor compliance.
  • Encourage responsible gaming while supporting India’s gaming and e-sports industry growth.

Conclusion:

• The draft rules mark a decisive step in regulating India’s fast-growing online gaming industry.
• The government seeks to safeguard consumers, curb societal harms, and promote e-sports and skill-based gaming.
• The balance between regulation and innovation will determine the effectiveness of this legislation in shaping a responsible digital gaming ecosystem in India.