This news was first broken by Hindustan Times.
The Centre will notify the final rules under the Promotion and Regulation of Online Gaming (PROG) Act, 2025. A key change: registration for online social games will be fully voluntary, according to two IT ministry officials who spoke to Hindustan Times.
This marks a shift from the October 2025 draft, which caused confusion by suggesting both mandatory and optional registration for such games. The draft had also proposed a broader compliance framework, including potential government-issued codes of practice and oversight on content and classification. “Registration has now been made fully voluntary for online social games,” one official said.
The change follows industry feedback that the earlier registration process was complex and burdensome, prompting the government to simplify it. The move also aims to avoid restricting non-monetised gaming, ease compliance for social gaming platforms, and maintain a focus on regulating real-money gaming.
E-sports and game classification remain unchanged: According to officials who talked to Hindustan Times, Registration will remain mandatory for e-sports games. Some e-sports formats could still be treated as money gaming depending on their structure, with the regulator responsible for making such determinations.
Officials said the rules continue to classify online games into three categories: social games, e-sports, and money gaming. Social games can generate revenue through subscriptions, but cannot offer payouts to users. E-sports may involve prize money, but only if recognised as sporting events. Online money gaming, where users stake money for a chance to win, is prohibited.
The law broadly defines an online game as a game played on an electronic or digital device and operated via the internet or similar communication technologies. This could bring a wide range of internet-linked video games within the law’s scope, not just games involving betting or tournament play.
Authority to oversee classification and enforcement: The framework proposes an Online Gaming Authority of India with quasi-judicial powers to investigate cases, summon individuals, and determine whether games fall under banned categories, with no major change to its core powers. It will also handle user complaints, guide platforms on game classification, and may influence even unregistered entities through its directives, while the compliance process will be managed through a dedicated digital portal nearing completion.
Law, penalties and timeline: Parliament passed the PROG Act on August 21, 2025, and it received Presidential assent the following day. It bans online money gaming and imposes penalties of up to 3 years’ imprisonment and fines of up to Rs 1 crore on operators. Advertising such services can attract up to two years’ imprisonment and fines of up to Rs 50 lakh.
Banks and payment operators that process transactions for banned money-gaming services may also face up to 3 years’ imprisonment, a fine of up to Rs 1 crore, or both.
Note: The copy has been updated for better clarity on 21/03/2026 at 3:45 PM.
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