India's New Draft Online Gaming Rules: Esports Focus, Gaming Authority, and Lots More The draft rules provide enabling provisions to encourage structured growth of legitimate esports and social gaming ecosystems.

Weeks after notifying a ban on real-money games through a law, the Ministry of Electronics and Information Technology has published a draft of the Promotion and Regulation of Online Gaming Rules, 2025, for consultation.

The new draft rules aim to simplify and streamline the gaming industry and its stakeholders. The ministry in its paper says that the draft rules provide enabling provisions to encourage structured growth of legitimate esports and social gaming ecosystems.

It also aims to lay down a framework for determination of an online game as an online money game or otherwise; prescribes the framework for recognition, categorization and registration of legitimate e-sports and online social games; mandates maintenance of National Online Social Games and E-sports Registry, and lots more.

It's worth noting that the draft rules do not talk about an enforcement date. This is likely to be a temporary relief for companies operating in real money gaming. Though RMG operators have more or less shut down their business.

Recently, Dream11 started exploring the fintech space with Dream Money, a personal money management app. The company also said it had onboarded Swiggy, Astrotalk, Tata Neu as advertisers after turning the Dream11 from RMG into a free-to-play platform.

That said, let's take a look at the key points in the new draft rules:

A new gaming authority

New draft rules propose a new gaming authority that will be based in the Delhi-NCR. One of the key objectives of the "Online Gaming Authority of India" is to help determine whether an online game is an online money game or something else. Based on that, it will be recognizing, categorizing, and registering the games.

This authority will be led by a person from the Ministry of Electronics and Information Technology (MeitY) and include three ex officio Joint Secretaries representing Ministries dealing with information and broadcasting, youth affairs and sports, and financial services.

It also envisions a register which will feature details of different types of online games.

Game categories

As mentioned above, there's a lot of focus on determining the type of games. The proposed framework will ensure a game, categorized as an online money game, will be asked to immediately cease offering the game and block promotions and advertisements.

Furthermore, esports will have to go through mandatory registrations through a separate governance act. This will be overseen by the Ministry of Youth Affairs and Sports.

The rules also mention online social games, which will be overseen by the Ministry of Information and Broadcasting.

Just to recall, the government defines online social games as follows:

"These are casual games that form part of everyday recreation. They are primarily skill-based and designed for entertainment, learning, or social interaction. Such games are generally considered safe and do not cause negative social consequences."

Esports are referred as "competitive digital sports where teams or individuals participate in

organised tournaments. Success in esports requires strategy, coordination, and advanced

decision-making skills."

Registrations, penalties, and grievance redressal

Draft rules under the new online gaming law aim to formalize the game's status and register it through a unique registration number. Companies/creators are supposed to provide key details such as the name of the game, description, age group, revenue model, and user safety features.

As expected, there are also provisions for penalties for non-compliance. The authority has the power to suspend or cancel an online game. It can also prohibit offering, facilitating, or promoting such games for a specified period. Some of the reasons for penalties could be the loss caused to a person due to non-compliance with the rules, repetitiveness of non-compliance, the number of people affected by the game, and more.

Registered gaming companies are mandated to have a functional grievance redressal mechanism for users. Moreover, users can approach the Grievance Appellate Committee (GAC) within 30 days if they are not satisfied with the company's grievance redressal. The committee is expected to address the grievance in a timely manner. Similarly, users can move on to the Online Gaming Authority of India and then to the Appellate Authority, which is the Secretary of MeitY for the final redressal.

Between the lines

While RMG is now a thing of the past, new rules double down on the original promise of supporting esports and social games in India. This is despite the fact that RMGs were the biggest revenue generator for the online gaming industry.

One of the things you may or may have not missed is that esports is now under the Ministry of Youth Affairs & Sport. This is the closest to esports now being recognised as a legitimate sport.

Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, notes this important development and says rules create a framework for structured growth. He's also hopeful that the rules could pave the way for more democratic access to esports, especially in the smaller towns.

"By bringing esports firmly under the Ministry of Youth Affairs & Sports, the government has recognised esports as a legitimate sport while creating a framework for structured growth. This should accelerate grassroots programs, open the door for state and district-level championships, and ensure players see a clear career pathway much like traditional sports. It also boosts investor and sponsor confidence, which is critical to scaling prize pools, infrastructure, and IP development," he said.

Animesh Agarwal, Co-founder and CEO, S8UL more or less echoes this hope as he describes the move as a "landmark moment" for India's gaming and esports industry. Agarwal also welcomed the move to recognise and categorise online games.

"This distinction is important as it opens the door to greater societal and parental acceptance, encouraging new talent to pursue esports with the same dignity as cricket, football or badminton. It also reassures brands and investors that they are entering a structured, regulated ecosystem. This clarity is set to attract more brands and partners, unlocking larger sponsorships, creator collaborations, and grassroots programs…," Agarwal said in a statement.

Industry players are also optimistic about the new gaming authority.

"… the Online Gaming Authority of India (OGAI) will have a very important role. Developers and publishers need clarity, and OGAI can become the common point that guides them, aligns different ministries, and makes sure there's a fair and predictable process. If fostered with care, it will give the industry the confidence to innovate while staying compliant. For us in the ecosystem, that balance of creativity and clarity is what matters most," Vishal Parekh, Chief Operating Officer, CyberPowerPC India, explains.

Though Parekh also cautions about the "material change" mentioned in the draft rules.

As paraphrased above, material change is defined as any change in the manner of offering a registered online social game or e-sport, including a modification in features of the online game or its revenue model, which is reasonably likely to change the nature of such online social game or e-sport as an online money game or where there is any change in the manner in which money or anything recognised as equivalent or convertible to money is transacted for the online game…"

Parekh says that for developers, it's not always black and white whether a new feature tips a game from being social into being money-driven. That's why we hope the authority will create open guidelines and maybe even a consultative mechanism, so studios don't have to second-guess themselves.

"If there's open communication and transparency, it will give everyone, from startups to global publishers, the confidence to build responsibly while still pushing the envelope creatively. It's also critical that the authority includes stakeholders who have deep experience in the industry and understand the ecosystem, to guide its development effectively," he said.