Brief Context
Context The Ministry of Electronics and IT (MeitY) has released draft rules for online gaming. About They are intended to operationalise the Promotion and Regulation of Online Gaming (PROG) Act, 2025. It bans real money gaming (RMG) platforms such as online poker, rummy and fantasy sports while permitting only social games and e-sports.
Source Content
Syllabus: GS2/Governance
Context
- The Ministry of Electronics and IT (MeitY) has released draft rules for online gaming.
About
- They are intended to operationalise the Promotion and Regulation of Online Gaming (PROG) Act, 2025.
- It bans real money gaming (RMG) platforms such as online poker, rummy and fantasy sports while permitting only social games and e-sports.
Major Provisions
- Online Gaming Authority of India: It proposes the creation of the Online Gaming Authority of India (OGAI) as a dedicated regulator to oversee online gaming.
- The authority will have quasi-judicial powers, including summoning individuals, examining evidence, and issuing binding orders.
- Composition: Chairperson and 5 members from different ministries.
- Functions: To decide whether a game is an “online money game”.
- It will register online games.
- Impose penalties and issue directions.
- Cancel registration if a game changes its model to involve betting or wagering.
- Scope of the Act: It includes all forms of online money games e.g., poker, fantasy sports, betting.
- It allows only “online social games” and e-sports — games meant for recreation, education, or skill development.
- Registration: Both e-sports and social games will require compulsory registration with the authority. A certificate of registration will be valid for up to five years.
- Regulation: Companies must register their games with the Authority.
- They must provide details of revenue model and user safety features.
- Proof that revenue comes from ads, subscriptions, or access fees — not from wagers or stakes.
- Penalties and Offences: Offering online money gaming services may attract up to three years’ imprisonment and fines of up to ₹1 crore.
- Advertising such platforms could lead to two years’ imprisonment and fines up to ₹50 lakh.
- Violations are non-bailable offences and entire company staff can be held liable for facilitating breaches.
- Penalty Depends on: The gain from violation, loss to users and repetition of offence.
- Grievance Redressal Mechanism (Three-tiered): Internal mechanism of the game company.
- Grievance Appellate Committee (GAC) — under IT Rules, 2021.
- Online Gaming Authority of India — final appeal.
- The Role of Various Authorities: E-sports will fall under the Ministry of Youth Affairs, while social games will be regulated by the Ministry of Information & Broadcasting.
- MeitY will hold overall regulatory responsibility.
- The Ministry of Information & Broadcasting (I&B) will issue codes of practice and guidelines for classifying online social games (recreational, educational, skill-based, etc.).
Significance
- It will establish a uniform and national-level legal framework in the public interest.
- It will protect the country’s youth from predatory online Real Money Gaming apps which manipulate them through misleading monetary return promises.
- It seeks to curb gambling, addiction, and financial risks, while promoting ethical, skill-based gaming.
Source: AIR