Overview

• MeitY published draft rules under the PROG Act on Oct. 2 and opened a 30‑day public consultation ending Oct. 31.
• Offering prohibited online money games could draw up to three years’ imprisonment and fines up to Rs 1 crore, with harsher penalties for repeat offences.
• Key offences under Sections 5 and 7 are designated cognizable and non-bailable, authorised officers can search and arrest without a warrant, and those officers receive legal protection for actions taken in enforcement.
• The framework bans offering, promoting and facilitating such games, extends liability to players and company staff, blocks payment processing by banks and fintechs, and provides a safe harbour for banks processing refunds of pre-Act deposits.
• The draft sets up an Online Gaming Authority of India with a registry for e-sports and social games, places e-sports under Youth Affairs and Sports, leaves social games largely unregistered, and signals potential content codes by the I&B Ministry, with no enforcement date specified in the draft.