India Releases New Draft Rules to Regulate Online Gaming

India unveils their draft rules set to regulate online gaming and create space for the eSports betting market.

Authorities are often looking at new ways to improve the regulations of their region to ensure players are protected and gameplay is safe.

India is among the many countries that are making changes to their regulations when it comes to iGaming. The proposed new rules are set to regulate Indian casinos and online gaming in general and open the market for eSports betting.

New draft rules

The authorities released the Draft Promotion and Regulation of Online Gaming (PROG) Rules earlier this month under the PROG Act.

The new draft changes to the Indian gambling regulations draw a fine line between money-wagering platforms and skill-based entertainment, including eSports.

They are also setting up a national authority with quasi-judicial powers. The rules drafted by the Ministry of Electronics and Information Technology (MeitY) aim to curb the increase in online money games while creating a safe and structured environment for eSports and social gaming activities.

New authority

The plan is to create the Online Gaming Authority of India (OGAI), which will be the centralised regulatory body with its headquarters in the National Capital Region.

The OGAI, led by a senior official from MeitY, will be responsible for determining which games are prohibited. All online money games defined by stakes, wagers, and cash rewards will be put under this category and banned.

The body will also oversee the certification of social games and eSports and a national registry of all online games available in India. It will categorise games as online social games or eSports.

And any material changes (like changes or updates made to the gameplay mechanics or monetisation models) to games must be reported to the body.

Banning real money games

The draft rules enforce the Promotion and Regulation of Online Gaming Act 2025, which was passed in August 2025. This bans all forms of online money gaming in India and includes all skill, chance, and combination games. Violators can face up to three years in prison and fines of up to 10 million rupees ($112,718).

The advertisement or endorsement of real-money games is also banned, and there will be strict penalties for those who are in violation. This includes up to 2 years in prison and fines of 50 million rupees ($568,545). Financial institutions are also not allowed to process payments in relation to such games.

Protection of players

The draft includes a three-tiered grievance redressal mechanism that allows players to report issues and seek resolution. That way, they also increase accountability and transparency in gaming operations.

At the same time, the rules will also actively promote eSports and online social gaming. These are considered legitimate forms of entertainment and competition. And the government is set on growing these areas via structured regulation and support.

However, the draft states that no online social game or eSports title can operate or advertise in India without registration and a certificate valid for up to 5 years. The Ministry of Information and Broadcasting will oversee the promotion of social online games. And the Ministry of Youth Affairs and Sports will handle esports.

The fight against unregulated gaming

India is making moves like other countries as all face the same social and financial issues that come with unregulated gaming. With gaming disorders recognised as a health condition by the World Health Organisation, now more than ever, it’s important for regions to put measures in place that protect residents.

With these new rules, India is looking to balance digital innovation with consumer protection. But we can't deny that banning all real-money gambling doesn't seem that balanced and is known to sway players toward illegal casinos and unregulated gambling.

We will follow closely for any changes to the draft rules or implementations of any final versions. Because if they are implemented effectively, this new framework could serve as a model for other nations in regard to online gaming.

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By Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Hi, I'm Deni! I'm a research obsessive with a passion for gambling regulations, market trends, and casino news. I dig deep into every topic I cover - so every article, review, or guide I write is built on solid research and real detail.

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Last updated: October 17, 2025

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India releases new draft rules to regulate online gaming

New draft rules

New authority

Banning real money games

Protection of players