A new law has come into effect across the country imposing a total ban on online money games. The ‘Promotion and Regulation of Online Gaming Act 2025’ (PROG Act 2025), passed by Parliament in August 2025, is now officially in force.
Key Highlights of the New Law:
- Comprehensive Ban: The law bans all online games where players deposit money in hopes of winning more.
- New Regulatory Authority: The ‘Online Gaming Authority of India’ will be established under the IT Ministry to oversee and regulate the online gaming sector.
- Game Classification: This authority will verify whether a game qualifies as a money-transaction game. Games classified as e-sports will require specific registration.
- Strict Penalties: Individuals or organizations operating banned games or financial institutions facilitating these transactions can face up to three years in prison or a fine of ₹1 crore.
- Repeat Offenses: For repeated violations, the penalty increases to five years of imprisonment and a fine of up to ₹2 crore.
- Ban on Advertisements: Promoting or advertising prohibited games is also a punishable offense. Violators can face up to two years in prison or a fine of ₹50 lakh.
The Central Government has implemented this law to ensure consumer safety and to prevent financial fraud. The new legislation also includes a system for the public to report complaints regarding illegal gaming activities directly to the authority.
