Government Enacts Strict Curbs on Online Money Gaming

• Violations of online money gaming rules may become non-bailable under the PROG Act, 2025.
• The draft allows warrantless searches and holds all staff liable.
• Critics warn of misuse, and the sector fears revenue loss and user migration.

The Indian government has unveiled draft regulations that would make violations of online money gaming laws non-bailable offenses, marking a significant escalation in oversight of the rapidly growing industry.

The proposed rules, published under the Promotion and Regulation of Online Gaming Act, 2025, would allow authorities to arrest individuals accused of violations without the possibility of bail. The measures reflect mounting government concern over financial losses, addictive behavior and accountability gaps in the sector.

Sweeping Enforcement Powers

Under the draft regulations, violations of Sections 5 and 7 of the act would become cognizable and non-bailable, superseding provisions in the Bharatiya Nagarik Suraksha Sanhita, 2023. Section 5 prohibits offering, inducing or facilitating money-based gaming, while Section 7 bars banks and payment intermediaries from processing related transactions.

Authorized officers would gain powers to enter physical and digital premises, conduct searches and make arrests without warrants. Liability would extend beyond company directors to all employees and officers, broadening accountability across organizations.

A newly established Online Gaming Authority of India would oversee the sector, with powers to classify games, grant or revoke registrations and impose advertising bans. Games designated as money games would lose recognition as e-sports under the National Sports Governance Act, 2025.

Parliament passed the PROG Act in August to replace fragmented state-level regulations with a unified national framework. While the law permits e-sports and social games without wagering elements, it bans money-based online gaming and related promotions.

Industry Fallout

The regulations could significantly disrupt major platforms including Dream11 and Mobile Premier League, valued at $8 billion and $2.5 billion respectively. MPL has announced plans to cut approximately 60% of its India-based workforce in response to the ban.

The restrictions could reduce tax revenues by ₹20,000 crore and potentially drive users toward offshore platforms beyond Indian regulatory reach, according to industry estimates.

The Online Gaming Authority of India would have authority to classify any platform allowing users to deposit money and win cash as a "money game." Designated operators would be required to immediately cease operations, remove advertisements and could face public blacklisting. Payment processors would be mandated to suspend services.

The government has invited stakeholders to submit comments on the draft regulations until Oct. 31, giving industry participants, legal experts and the public an opportunity to provide feedback before the rules are finalized.