Centre notifies rules to regulate online gaming. Here is what changes from May 1

THe unification ministry of electronics and info technology (MEITY) on wed notified the rules to regularize the digital gaming blank under the Promotion and Regulation of Online Gaming (PROG) Act, 2025, with the new norms coming into effect from May 1.The newly-notified rules enable the formation of a digital gaming authority. MEITY has also said that there will be no mandatory registration of online games that do not involve real money.According to the notification, the offences related to the law will be investigated by any of the following officials:1. A police officer in charge of a cyber cell in a State and Union territory2. Any nodal cyber cell officer in the State Government or Union territory administration, including those at the level of police station, district or commissionerate.Hindustan Times had reported back in March that the Centre was set to notify the final rules under the PROG Act, 2025, with key provisions eased to make the framework more industry-friendly. The draft rules were published on October 2 last year and were subsequently amended following public and stakeholder feedback.The three categories of online gamingIT ministry officials said the framework continues to classify games into three categories — online social games, e-sports, and online money games.“In social games, revenue can come in through subscriptions or similar models, but there can be no payouts to users. In e-sports, there can be inflows and outflows in the form of pre-declared prizes, but these must first be recognised as sporting events. The third category is money gaming, where users stake money and winnings are involved. This is banned,” an official explained back in March.Another official had added that even e-sport games could fall into the money gaming category depending on how they are structured, with the authority tasked with making that determination and taking action where required.The gaming regulatorThe rules will provide for the creation of an Online Gaming Authority of India, with powers akin to a civil court to conduct inquiries and summon individuals. According to one official, the entire regulatory process is expected to be digital.According to the notification, the MEITY Additional Secretary will head the gaming authority, while joint secretaries from the ministry of home affairs (MHA), Department of Financial Services, ministry of information and broadcasting, ministry of youth affairs and sports, and the Department of Legal Affairs will serve as ex officio members.“There are no major changes to the authority’s powers. It will continue to have quasi-judicial functions,” an official had said in March.The authority will play a central role in determining the nature of games and enforcing the law. “If a platform wants clarity on whether a game qualifies as an online money game, the authority will make that determination. It will also act on complaints from users and step in where violations are found,” another official said.What is the PROG Act 2025?The PROG Act, aimed at banning pay-to-play models, was passed in Parliament on August 21, 2025, and received Presidential assent on August 22.The law prohibits all online money gaming services and imposes penalties of up to 3 years’ imprisonment and fines of up to ₹1 crore on facilitators. Advertising such platforms carries penalties of up to two years’ imprisonment and fines of up to ₹50 lakh.