Government Sets Up Central Regulator for Online Gaming, Bans Wager-Based “Money Games”

New Delhi, October 3, 2025: The government has notified the formation of the Online Gaming Authority of India, a new central regulator tasked with overseeing the online gaming sector and enforcing the ban on wagering-based “money games.” Headquartered in Delhi-NCR, the authority will function as a digital civil-court entity, with powers to inspect records, impose penalties, and direct financial institutions.

Key Features of the New Regime

• National Registry: The authority will maintain a National Registry of Online Social Games and Esports, publishing details of registered games and those banned as money games. Approved games will receive a Certificate of Registration valid for up to five years.

• Registration & Oversight: Social games and esports platforms must register with the authority. Esports registration requires recognition under the National Sports Governance Act, while social games will be regulated under the Ministry of Information and Broadcasting.

• Ban on Money Games: Any online game involving stakes, wagers, or cash-convertible winnings will be deemed an “online money game” and prohibited. Platforms offering such games may face cancellation of registration, financial penalties, advertising bans, and restrictions on payment processing. Banks and intermediaries will be barred from facilitating payments for these games. A 180-day transition period is allowed for refunding user funds collected prior to the Act coming into force.

• Civil-Court Powers: The authority can order instant takedowns, publish public blacklists, suspend or cancel registrations, and cut off payment rails. Repeat offenders face increasingly strict penalties, which will be credited to the Consolidated Fund of India.

• Grievance Mechanism: All registered gaming platforms must have a grievance redressal system. Complaints can be escalated to the grievance appellate committee and the gaming authority, both of which must resolve cases within 30 days.

Ministry Responsibilities

• Esports: Promoted and recognised by the Ministry of Youth Affairs and Sports.

• Online Social Games: Regulated by the Ministry of Information and Broadcasting, which can issue codes of practice to ensure safe, age-appropriate, and educational content.

Experts have noted potential ambiguities due to overlaps between esports and social games, especially in titles with chat features or in-game cosmetic purchases. Until categorization by the online gaming authority, it may remain unclear which ministry’s rules take precedence.

Expert Opinions

• Arun Prabhu, Cyril Amarchand Mangaldas: “The draft rules propose a granular framework for registration and give the authority power to examine games directly, even without an application.”

• Alay Razvi, Accord Juris: “The authority is empowered to ban advertising, publish blacklists, and cut off payment rails, ensuring deterrent penalties to protect users.”

• Kazim Rizvi, The Dialogue: “The rules bring clarity to service providers through structured registration, grievance redressal mechanisms, and accountability norms.”

The draft Promotion and Regulation of Online Gaming Rules, 2025 has been notified for public comment until October 31, 2025.