The Indian government has officially put into effect new rules to regulate online gaming, leading to significant changes in the industry. The Promotion and Regulation of Online Gaming Act 2025, which was approved by Parliament in August, came into effect on October 1, 2025. Here are five important aspects of these new regulations:

1. Ban on Online Money Games: The core of the new regulations is the prohibition of online games involving real money, including those with stakes, wagers, or any form of cash-convertible winnings. This encompasses games like poker, rummy, and fantasy sports, which were previously significant revenue streams for many gaming companies. The government's decision is rooted in concerns about the negative impacts of online money gaming, such as money laundering, terror financing, and the rise in suicides linked to gambling losses.

2. Shift Towards Esports and Social Gaming: With the ban on real money games, the government is focusing on promoting esports and online social games. These are seen as avenues for recreation, education, and skill development. IT Minister Ashwini Vaishnaw has stated that while money games are being phased out, the gaming industry still holds considerable potential, particularly with the government's support for esports and social games, with the hope that India will emerge as a global game development hub.

3. Online Gaming Authority of India (OGAI): The government has established a central regulator called the Online Gaming Authority of India (OGAI) to oversee the online gaming sector. Headquartered in Delhi-NCR, the OGAI will function as a digital office with powers similar to a civil court. Its responsibilities include classifying games as either prohibited "online money games" or permissible "social games" and "esports," registering online gaming companies, and enforcing the new regulations. The OGAI will also maintain a National Registry of Online Social Games and Esports, providing details of registered and banned games.

4. Registration and Penalties: Online game operators are now required to register with the OGAI. During registration, companies must provide details about their revenue model, user safety measures, and proof that their revenue comes from sources other than wagering, such as advertisements, subscriptions, or one-time fees. Violations of the ban on online money games will be treated as non-bailable offenses, and the entire company staff can be held liable. Penalties will be determined based on the profits earned through non-compliance, losses caused to users, and the repeated nature of the violation.

5. Grievance Redressal and Transition Period: The new rules establish a three-tiered grievance redressal mechanism to protect users. Players can initially raise complaints with the gaming service provider's internal grievance officer, then appeal to the Grievance Appellate Committee, and finally to the OGAI for resolution. Additionally, companies are provided with a 180-day transition period to refund user funds collected before the Act came into force.

These new regulations mark a significant shift in India's online gaming landscape, with the government aiming to balance the growth of the digital gaming industry with the need to protect consumers and prevent illegal activities. While the ban on real money games has faced some criticism from industry advocates, major gaming companies have already begun to adapt by shifting their focus to esports, social games, and ad-supported content. The effectiveness of these regulations in shaping a responsible digital gaming ecosystem will depend on striking the right balance between regulation and innovation.