Govt proposes to make online money game rules violation non-bailable, entire company staff liable

The government has proposed stringent measures under the draft rules of the Promotion and Regulation of Online Gaming Act, 2025, making violations relating to online money games a non-bailable offence and holding the entire staff of the concerned company liable for contraventions.

The Ministry of Electronics and Information Technology (MeitY) on Thursday issued the draft Promotion and Regulation of Online Gaming Rules, 2025, which provide a comprehensive framework for the promotion of legitimate e-sports and online social games while prohibiting exploitative money-based formats.

According to the draft rules, any breach of provisions relating to online money games would attract action under Section 14 of the PROG Act, making the offence cognisable and non-bailable. The liability would extend not only to company directors but also to all officers and employees connected with the conduct of the game.

The rules lay down a transparent and accountable regulatory framework for the structured growth of e-sports and social gaming ecosystems, and provides a strong grievance redressal mechanism to safeguard users, the ministry said in a statement.

The proposed framework empowers the Online Gaming Authority of India to determine whether a game qualifies as an online money game, prohibit its offering or advertisement, and initiate penal action. If a game is found to involve stakes or wagers, the provider will be directed to cease operations immediately.

Draft rules proposed to allow any authorised officer under the rules to enter any place, whether physical or digital, and search and arrest without warrant any person found to be suspicious of having committed or about to commit any offence under the Promotion and Regulation of Online Gaming (PROG) Act 2025.

"Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023, offences under section 5 and section 7 shall be cognizable and non-bailable," according to the draft rules.

Section 5 under the draft rules prohibits entities from offering, aiding, abetting, inducing or engaging in online money games and online money gaming services.

Section 7 bars banks, financial institutions, or any other person from facilitating financial transactions for any online money gaming service.

The draft rules also mandate online gaming firms to maintain a grievance redressal mechanism and submit to strict registration and compliance requirements. Certificates of registration issued by the Authority will remain valid for five years unless suspended or cancelled for violations.

The government has invited feedback and comments on the draft rules by October 31.