In a significant step toward a safer and more accountable digital entertainment ecosystem, the Government of India has officially notified the establishment of a Digital Gaming Authority (DGA) under the Promotion and Regulation of Online Gaming Act, 2025 (PROG Act). This move formalises a long-awaited regulatory framework for India’s fast-growing online gaming sector, which has previously operated with fragmented oversight and state-specific interpretations of skill-based and chance-based games.

A Unified Framework for Online Gaming

India’s online gaming industry has expanded rapidly in recent years, driven by smartphone penetration, digital payments, and youth participation. Alongside this growth, concerns have emerged regarding misleading game design, addiction, data misuse, and lack of operator accountability. 

The PROG Act is designed to balance two priorities: protecting citizens—particularly youth and middle-class families—from the harms of unregulated “online money games” involving stakes or promises of profit, while promoting legitimate digital recreation, including e-sports and social games with minimal or no financial risk. 

To implement this vision, the Digital Gaming Authority has been notified as the central regulatory body under the Ministry of Electronics and Information Technology (MeitY). It oversees registration, compliance, and enforcement, ensuring that innovation in gaming continues under a robust system of user protection. 

The Act provides the legal foundation, defining key terms such as online gaming platform, permissible online game, and real-money game, while the Promotion and Regulation of Online Gaming Rules, 2025 (PROG Rules) operationalise these provisions with detailed procedures and compliance requirements.  

The Digital Gaming Authority of India (OGAI) 

A central element of the PROG Rules is the establishment of the Online Gaming Authority of India (OGAI), a statutory regulator. 

Key features of OGAI include: 

• A corporate body headquartered in the Delhi–National Capital Region. 
• Powers like those of a civil court, including examining records, ordering takedowns, imposing penalties, and directing banks or intermediaries to block payments or advertisements linked to prohibited games. 
• Membership drawn from multiple ministries: Electronics & IT, Youth Affairs & Sports, Information & Broadcasting, Financial Services, along with legal and technical experts. 
• Maintaining a National Registry of Online Social Games and E-sports, listing registered games and publishing banned “online money games.” Approved games receive a Certificate of Registration, generally valid for five years. 

Core functions: 

• Registration and licensing of platforms offering real-money, skill-based, and social games. 
• Certification of games to ensure transparency, fairness, and absence of betting or harmful content. 
• Monitoring compliance with age restrictions, player protection, and data privacy standards. 
• Coordinating with law enforcement on illegal betting, money laundering, and consumer complaints. 
• Policy formulation and advisory functions, including technical and ethical standards for digital gaming. 

A public register maintained by the Authority will allow players, parents, and regulators to verify which games are legally permitted and which remain unlicensed.  

Categories of Games & Skill vs Chance 

The draft rules classify online games into three categories: 

1. Online Money Games – Games where users pay entry fees, stakes, or deposits expecting monetary gains. These are now prohibited under the Act, including real-money fantasy sports, poker, and rummy. 
2.  Online Social Games – Games intended for recreation, education, skill development, or social interaction, involving minimal or no financial risk. These are permitted under regulation. 
3.  E-Sports – Competitive digital games or tournaments recognised under the law, requiring adherence to rules and sometimes separate sports governance recognition. 

The Digital Gaming Authority will determine whether a game qualifies as permissible based on its gameplay mechanics, probability elements, and algorithmic fairness. 

Skill-based games such as chess, strategy-driven e-sports may be eligible for registration, while games involving wagering or random financial outcomes are prohibited unless specifically exempted.  

This formal distinction ensures clarity for platforms and reduces legal disputes at the state level. 

Key Provisions of the Draft Rules 

• Mandatory Registration & Certification: Providers of online social games and e-sports must apply for registration. Games must be certified to confirm they are not “money games” before operation and advertising. 
• Enforcement & Penalties: Operating or facilitating online money games, or promoting them, is a non-bailable offence with imprisonment, fines, and other penalties. Repeat offences attract harsher consequences. 
• Payment & Advertising Controls: Banks, intermediaries, and app platforms are directed to block payments or advertisements related to banned games. 
• Grievance Redressal Mechanism: Platforms must maintain user grievance systems. Appeals can be made to a Grievance Appellate Committee and, ultimately, the Authority. 
• Transition Arrangements: Pre-existing user funds with platforms before enforcement will be refunded within a stipulated period (typically 180 days). 

Why This Move — Drivers & Rationale 

India is home to over 500 million online gamers, making it one of the largest gaming markets globally. The lack of a central regulator had created ambiguity, with some states banning certain games while others permitted them under varying definitions of skill and chance. The government’s structured approach addresses this fragmented scenario. 

Implications for Industry and Users 

For Industry: 

• Real-money game operators must exit, restructure, or comply under prohibitions. 
• Social game developers and e-sports organisers must register, maintain grievance systems, adhere to content codes, and bear compliance costs. 
• Advertising and marketing strategies must avoid promoting banned games. 

For Users: 

• Individuals engaged in money games may lose platform access but will have refunds for pre-existing funds. 
• Players gain predictable rights, structured grievance redress, and protection against misleading practices. 

International Alignment and Future Outlook 

India’s Digital Gaming Authority aligns with global practices, such as the UK Gambling Commission and Singapore Online Gaming Control Unit but focuses on promotion and regulation rather than pure prohibition. 

The Authority will release detailed procedural guidelines covering registration, audits, grievance redress, and penalties. Industry stakeholders are invited to provide feedback during the consultation phase to ensure workable regulations.  

A Step Toward Responsible Digital Entertainment 

The notification of the Digital Gaming Authority signals a maturing approach to India’s digital policy, recognising online gaming as both a growth industry and a public-interest concern. 

By instituting a uniform licensing system and dedicated regulator, the government aims to position India as a trusted, globally competitive hub for digital gaming. Users gain safer participation, businesses gain predictability, and the sector can innovate responsibly under a clear legal framework. 

BCL India