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Govt sets up online gaming regulator under IT ministry
"On first reading, the draft rules seem to have a more demanding regime for esports, requiring registration first of the sport, and then the format in question," he said.
MeitY, late on Thursday, notified the draft Promotion and Regulation of Online Gaming Rules, 2025, which will ban all wagering and betting-based "online money games," while introducing a registration regime for social games and esports, backed by the new central regulator. The draft is open for public comments till October 31. Any online game involving stakes, wagers, or cash-convertible winnings will now be treated as an "online money game" and prohibited." onclick="showFullScrImg(this)"/>
The government has notified the formation of a new central regulator for online gaming, which will function as a digital office and oversee the enforcement of the money-gaming ban.
Headquartered in Delhi-NCR, the Online Gaming Authority of India will wield the powers of a civil court, ranging from inspecting records to imposing penalties and directing financial institutions.
It will also maintain a 'National Registry of Online Social Games and E-sports', publishing details of all registered games as well as those banned as money games. Approved games will receive a Certificate of Registration valid for up to five years.
The authority will function under the electronics and IT ministry (MeitY). "The draft rules propose a granular framework for registration of social games and esports administered by a powerful authority, which has the ability to directly examine games (even without an application being made)," said Arun Prabhu, partner and technology head at law firm Cyril Amarchand Mangaldas.
"On first reading, the draft rules seem to have a more demanding regime for esports, requiring registration first of the sport, and then the format in question," he said.
MeitY, late on Thursday, notified the draft Promotion and Regulation of Online Gaming Rules, 2025, which will ban all wagering and betting-based "online money games," while introducing a registration regime for social games and esports, backed by the new central regulator. The draft is open for public comments till October 31. Any online game involving stakes, wagers, or cash-convertible winnings will now be treated as an "online money game" and prohibited. Platforms found offering such games face cancellation of registration, penalties, and restrictions on advertising and financial transactions.
Banks and intermediaries will be directed not to facilitate payments for such games. The rules also provide a 180-day transition period for companies to refund user funds collected before the Act came into force. "The new authority is empowered to order instant takedowns, ban advertising, publish public blacklists, and cut off payment rails," said Alay Razvi, managing partner at law firm Accord Juris. The regime has civil-court powers and can impose deterrent penalties to protect users, he said. "Esports require recognition and registration under the National Sports Governance Act," he noted.
Kazim Rizvi, founding director of public policy think tank The Dialogue, said, "The rules also bring much-needed clarity to service providers through a structured registration process, grievance redressal mechanisms, and accountability norms, including suspension or cancellation of registrations for non-compliance."
Source: EconomicTimes
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