India Could See Online Gaming Authority as Part of New Draft Gambling Regulations
India may soon introduce a new regulatory authority to oversee the country's online gaming sector.
LISTEN TO THIS ARTICLE:The Ministry of Electronics and Information Technology has released draft rules proposing the creation of the Online Gaming Authority of India, a central body to register, supervise, and regulate online gaming operations across the nation. The draft framework was issued to support the Promotion and Regulation of Online Gaming Act, 2025, which bans all forms of online money games such as poker and fantasy sports, while permitting non-monetary social games and e-sports.
Related: Indian Online Betting Companies Shut Down Amid New BanThe rules are designed to create a transparent framework for companies seeking to operate legally within India's growing gaming ecosystem.
Under the proposed system, violations of the Act will be classified as non-bailable offenses, and accountability will extend to employees, management, and others involved in facilitating unlawful gaming activities. The Online Gaming Authority would be structured with a chairperson and five members drawn from various government ministries, including finance, home affairs, and youth affairs.
This panel would hold powers to determine whether a game qualifies as an online money game, issue or cancel registrations, and impose penalties for violations.
The new legislation, which received Presidential assent in August, was drafted amid concerns over the potential societal impact of unregulated online gaming platforms. Authorities have cited issues such as financial losses, addiction risks, and security vulnerabilities as reasons for stricter oversight. The government aims to create a balanced environment that allows responsible digital entertainment while curbing illegal betting and gambling operations.
One of the key functions of the proposed regulator would be to monitor any significant changes made to approved games. For example, if a company modifies its business model or introduces new payment mechanisms that turn a social game into a money-based one, the authority could revoke its registration certificate. This measure ensures that registered operators maintain compliance even after their initial approval.
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New Codes of Practice for Social Casinos
The draft rules also direct the Ministry of Information and Broadcasting to create codes of practice defining categories of online social games. These categories may include games designed for recreation, education, skill development, or similar purposes. The guidelines are intended to help differentiate legal social gaming from prohibited gambling-like formats.
Companies applying for registration would be required to provide details on their revenue models, data protection measures, and user safety protocols. Applicants must demonstrate that their income sources come from advertisements, subscription models, or one-time access fees, rather than from stakes or wagers. This transparency requirement aims to prevent disguised betting operations from entering the regulated market.
In the event of non-compliance, the Online Gaming Authority would determine penalties based on multiple factors, including the profits earned through violations, losses suffered by users, and whether offenses were repeated. These provisions are designed to ensure proportionate enforcement while deterring systemic abuse.
The draft framework also establishes a three-tier grievance redressal mechanism. Complaints would first be handled internally by the gaming service provider. If unresolved, users could escalate cases to the Grievance Appellate Committee established under the IT Intermediary Rules, 2021. As a final stage, the Online Gaming Authority itself would review the matter, providing a structured channel for accountability and user protection.
The Ministry has opened the draft rules for public consultation, inviting feedback from industry stakeholders, consumer bodies, and citizens until October 31. Officials have encouraged companies, developers, and legal experts to submit suggestions that could refine the regulatory approach before the framework becomes law.
Since the Act's passage, several international gaming companies have scaled back or exited the Indian market. Among them, Flutter Entertainment, the global operator behind brands such as PokerStars, has withdrawn its money-based gaming operations due to the tightening regulatory landscape.
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