THE DRAFT ONLINE GAMING RULES, 2025: KEY IMPLICATIONS FOR THE INDUSTRY

Issued by the Ministry of Electronics and Information Technology (MeitY) for public consultation until October 31, 2025, the Draft Promotion and Regulation of Online Gaming Rules, 2025 is set to significantly reshape how India governs online gaming, e-sports, and digital entertainment.

As a firm that operates at the intersection of law, business, and technology, MLEGAL recognizes this as a pivotal moment for operators, fintech companies, content platforms, and investors. The following is a summary of the key aspects businesses need to understand and the steps they should consider taking.

1. Categorization of Online Games

The Draft Rules classify online games into three primary categories:

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  Online Money Games (OMGs): Games involving any form of staking or wagering money are strictly prohibited, irrespective of whether they are based on skill or chance.

  
  


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  E-sports: Competitive, skill-based games that require mandatory registration and recognition under the National Sports Governance Act, 2025.

  
  


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  Online Social Games (OSGs): Non-wagering games designed for entertainment, education, or skill development. Registration is optional but provides regulatory and reputational benefits.

  
  

Key Concern: Subscription-based or one-time fee-based OSGs could be misclassified as OMGs due to overlapping definitions, posing compliance risks.

2. The Role of the Online Gaming Authority

The Draft Rules propose the creation of a dedicated Online Gaming Authority with extensive regulatory powers. This body will:

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  Categorize games as OSG, E-sport, or OMG.

  
  


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  Issue and cancel registrations and approvals.

  
  


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  Maintain national registries of permitted and prohibited games.

  
  


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  Coordinate with banks, fintechs, and law enforcement agencies.

  
  


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  Act as the final appellate authority for grievance redressal.

  
  


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  Issue compliance directions to all entities operating within the industry.

  
  

This centralized regulatory approach aims to bring transparency and accountability across the gaming ecosystem.

3. What Should Businesses Do?

For Game Operators

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  Assess whether games fall under the OSG or E-sport categories.

  
  


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  Opt for voluntary registration to mitigate future regulatory exposure.

  
  


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  Establish grievance redressal mechanisms as part of the three-tier compliance framework.

  
  

For Fintechs and Banks

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  Prepare for potential refund requests before the Act’s enforcement.

  
  


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  Implement transaction filters to block payments linked to prohibited OMGs.

  
  


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  Seek clarification from MeitY on operational and liability issues.

  
  

For Investors and Platforms

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  Reevaluate regulatory exposure within gaming and entertainment portfolios.

  
  


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  Identify possible misclassification risks and evolving compliance obligations.

  
  


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  Actively participate in the consultation process to protect innovation and investment interests.

  
  

MLEGAL’S RECOMMENDATION

According to Mohit Suri, Managing Partner at MLEGAL:

“The Draft Rules offer much-needed structure, but they also leave open significant gray areas—particularly around fee-based models and game classification. Businesses would be well-advised to engage proactively during this consultation phase.”

MLEGAL continues to advise clients across the gaming, fintech, digital content, and technology sectors on structuring, compliance, and regulatory strategy under the evolving framework.

Responding to the Draft Rules

The Ministry is accepting public feedback on the Draft Rules until October 31, 2025 via email at:

ogrules.consultation@meity.gov.in

For Legal Support, Contact

Mohit Suri

Managing Partner, MLEGAL

🌐 www.mlegal.co.in

📧 mohit.suri@mlegal.co.in