Particle.news
Download on the App Store
9 ARTICLES
·
1h ago

India Releases Draft Online Gaming Rules With New Regulator, Tough Penalties

Public comments are invited until October 31 before the framework is finalised.

If a game is declared an online money game, the Authority can order it to stop immediately, ban its advertising and promotion, and add it to a public list of prohibited titles.
The proposed rules say individuals could be penalised for playing online money games.
If a game is declared an online money game, the Authority can order it to stop immediately, ban its advertising and promotion, and add it to a public list of prohibited titles.
Image

Overview

  • The draft rules operationalise the PROG Act by proposing the Online Gaming Authority of India, a central regulator with quasi-judicial powers to register games, conduct inquiries and issue binding orders.
  • Key violations are designated cognizable and non-bailable, with authorised officers empowered to search and arrest without warrant and penalties of up to three years in prison and fines up to ₹1 crore for illegal online money games.
  • The Authority will apply tests to classify prohibited titles, including whether a game involves stakes or wagers, requires prior deposits, or offers winnings convertible to cash, and can order immediate cessation, ban promotions and publicly list such games.
  • Legitimate offerings can seek registration as e-sports or online social games, with decisions generally within 90 days, certificates valid for up to five years and a three-tier grievance redress system culminating at the Authority.
  • The draft includes a transitional provision allowing banks to refund pre-Act player balances without liability for up to 180 days after enforcement, and it does not set a notification date for when the rules take effect.