India notifies rules to ban online games: 5 things to know

The Central Government has notified the Promotion and Regulation of Online Gaming (PROG) Rules, 2025, which lay down the framework of operations for online games in India under the recently enacted ban on online money games.

Here are five things to know about the new rules:

### Launch of Online Gaming Authority of India

The draft rules have mentioned one of the most significant proposals in the form of the creation of the Online Gaming Authority of India (OGAI). The agency will be headquartered in the National Capital Region and led by a senior Ministry of Electronics and IT (MeiTY) official. OGAI will operate as the central digital regulator and will be working toward game determination, registration and enforcement.

### Grievance redressal mechanism

The draft proposes a three-tier grievance redressal system to safeguard user interests. Users with complaints must first contact the internal grievance officer of the registered online gaming service provider. If the issue remains unresolved, they can escalate it to the Grievance Appellate Committee (GAC) established under the IT Rules, and as a final step, approach the OGAI. This structured approach is designed to ensure the timely resolution of user grievances.

### Transitional clause for user funds

PROG has mandated a transitional clause for funds that were collected before the enforcement of the draft rules. Banks or intermediaries may process refunds to players without such actions being considered as supporting illegal money gaming. This provision will remain in effect for 180 days from the date of enforcement.

### Offences and Penalties

Any offences and violations under PROG would attract hefty penalties and punishments from now. While offering online money gaming services may attract up to three years’ imprisonment and fines of up to Rs 1 crore, advertising online money gaming platforms could lead to two years’ imprisonment and fines of up to Rs 50 lakh.

### Search, seize and arrest without warrant

The draft says that relevant authorities will have the power to search, seize and arrest without a warrant. “Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023, offences under section 5 and section 7 shall be cognizable and non-bailable.” Section 5 prohibits companies and individuals from offering, promoting, facilitating, or participating in online money games. Section 7 bars banks, financial institutions, and intermediaries from processing transactions related to such activities.