The Ministry of Electronics and IT unveiled the draft regulations for online gaming, suggesting the establishment of the Online Gaming Authority of India as a regulatory body, outlining the procedure for companies to gain registration to operate legally in India, and creating a three-tier grievance redressal mechanism, among other aspects.

The proposed regulations will implement the Promotion and Regulation of Online Gaming Act, 2025, which bans all types of online gambling games like poker and fantasy sports, but permits “online social games” and e-sports.

The proposed regulations suggest classifying violations as a non-bailable offense and making all company personnel responsible for enabling any infractions.

The suggested online gaming authority will include a chairperson and five additional members from different government departments. It would have the authority to decide if a game qualifies as an “online money game”, register games, provide instructions, and enforce penalties.

The legislation, which gained Presidential approval in August, was created in response to security worries regarding online gaming platforms and their possible negative impact on society.

The regulator will possess the authority to determine if any "material change" has occurred in a registered game, like a modification in its revenue model that turns it into an online gambling game. If any such violation is detected, the registration certificate may be revoked.

The proposed regulations require the Ministry of Information and Broadcasting to provide codes of conduct or guidelines concerning the classification of online social games for entertainment, education, skill enhancement, or other similar purposes.

Also Read: Chameleon Phones, Solar Charging Laptops, AI Ring - MWC 2025

Entities aiming to apply for registration of their online games must provide information regarding their revenue model and user safety features. They must demonstrate that they earn income through advertisements, subscriptions, a one-time access fee, or any other revenue model that does not include payments resembling a stake or wager.

Also Read: Jack Dorsey's BitChat Could be Signaling a New Shift in Messaging Paradigms

Should an entity breach the Act, the gaming authority will assess the penalty amount based on factors such as the profit from non-compliance, harm inflicted on users, and the frequency of the violation.

Also Read: AI Appreciation Day: From Innovation to Transformation

The proposed regulations establish a three-level complaint resolution system, beginning with the internal mechanism of the registered online game service provider. If a user is unhappy, they may first appeal to the Grievance Appellate Committee (created under rule 3A of the IT Intermediary Rules, 2021) and subsequently to the gaming authority.