Govt draft rules make online money gaming violations non-bailable

New Delhi: The government has proposed tough enforcement under the Promotion and Regulation of Online Gaming Act 2025. Violations related to online money gaming would be treated as cognizable and non-bailable, and company personnel who facilitate a breach could be held liable.

The draft rules say authorised officers may enter premises or digital systems, search devices and arrest without warrant anyone suspected of committing or about to commit an offence under the Act. The non-bailable status applies to offences under sections 5 and 7. Section 5 targets those who offer, aid, abet, induce or engage in online money games or their services. Section 7 bars banks, financial institutions and any other person from facilitating payments for such services.

Parliament approved the PROG Act in August, and it was notified on August 22. The law bans online money games and money-based gaming services across the country, as well as their promotion. The draft rules provide legal protection to officers and authorised persons who conduct searches and seizures under the Act.

Policy work has been split between ministries. The Ministry of Information and Broadcasting would issue codes of practice and guidelines for classifying online social games meant for recreation, education, skill development and similar purposes. The Ministry of Electronics and Information Technology has invited comments on the draft by October 31.

Compliance and registration norms have been outlined. Entities that seek registration for their online games must disclose their revenue model and user safety features. They need to demonstrate that earnings come from advertising, subscriptions, one-time access fees or other models that do not involve stakes or wagers.

Penalties will be calibrated by the gaming authority. Factors include the gains from non-compliance, harm to users and whether the breach is repeated.

A three-tier grievance system is proposed. Users first approach the registered game service provider’s internal mechanism. Appeals can then go to the Grievance Appellate Committee created under the IT Intermediary Rules 2021, and finally to the gaming authority.