Following the release of the draft Promotion and Regulation of Online Gaming (PROG) Rules, 2025, on Thursday by the IT ministry, a lot of attention has been drawn to the hefty penalties for using online betting applications.
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The PROG Rules, 2025, make an important distinction between online betting apps, legitimate gaming applications, and e-sports.
While "e-sports" have been defined as "organised competitive events between individuals or teams" that do not involve real-money "bets, wagers or any other stakes", an "online game" has been defined as a game played on a digital device and operated using the Internet.
However, online betting applications, labelled as "online money games" in the PROG Rules, 2025, have been defined as online games—excluding e-sports—that involve bets, wagers or any other stakes.
The PROG Rules, 2025, stipulate that those found guilty of using online betting apps—now a cognisable and non-bailable offence—would face up to three years' jail time, a fine of up to Rs 1 crore, or both. Those found advertising such platforms could also face up to two years' jail time, a fine of up to Rs 50 lakhs, or both.
While Section 5 of the PROG Rules, 2025, prohibits companies and individuals from being involved with online betting apps in any manner, Section 7 even restricts banks, financial institutions, or intermediaries from enabling related transactions.
Also at the core of the draft rules is the establishment of the Online Gaming Authority of India, a regulatory body with powers akin to a civil court, as per the IT ministry's explanatory note for the draft rules.
This body will be tasked with "(determining) whether an online game is an online money game or otherwise, recognition & registration of e-sports and online social game, compliance, grievance redressal, and enforcement".
In a change from their previous stance, IT ministry officials have now welcomed feedback on the draft PROG Rules, 2025, till October 31.
