The PROG Act 2025, Part I: What India’s New Online Gaming Law Enables

Update: The Promotion and Regulation of Online Gaming Rules, 2026, in force from 1 May 2026, now set out the registration process for esports.

The Promotion and Regulation of Online Gaming Act, 2025 applies across India and to platforms operated from outside India that are accessible to Indian users, which brings offshore operators within its reach. It divides online games into three categories: esports and online social games, which it permits and promotes, and online money games, which it prohibits. In Part I, AM Sports Law & Management Co. looks at the permitted categories and the new regulator.

Esports under the Act

The Act defines an esport as an online game that is played as part of a multi-sport event, involves organised multiplayer competition under predefined rules, is recognised under the National Sports Governance Act, 2025 and registered with the Authority, and has outcomes determined solely by skill. Registration and participation fees and performance-based prize money are allowed. Bets and wagers are not. The Government is to promote and develop esports as a competitive sport.

Formal recognition is a significant step for an industry worth US$1.65 billion globally, with esports now a medal event at the Asian Games. The definition does raise practical questions. Most esports events, including The International for Dota 2, the Valorant Champions Tour and India’s BGMI Masters Series, are single-title tournaments, and “multi-sport” could mean several sports or several titles. Many competitive formats are single-player against computer opponents. Titles are often not announced far in advance of a multi-sport event, which makes recognition and registration hard to time. The word “solely” is difficult to apply where factors such as network latency can influence results, and the Act does not address game licences, which players buy, or in-game purchases.

India has no recognised national federation for esports yet, and several associations operate in parallel. The paper suggests integrating esports into Digital India, AVGC, Startup India and Skill India through a joint working group, adopting integrity codes such as those of the Esports Integrity Commission, consulting publishers and operators on the definition, and piloting a government-endorsed National Esports League under Khelo India.

Online social games

Online social games are those offered for entertainment, recreation or skill development, with access through subscriptions or one-time fees and no stakes or winnings. The category covers casual games such as puzzles and learning platforms for maths, languages and coding. The Act refers to a one-time access fee but is silent on in-app purchases, a major revenue model for casual games, and the GST treatment of subscriptions is unclear. We recommend clear disclosure of all charges in local languages, regulated pricing for child-focused games, support for vernacular educational content and Indian studios, and collaboration with NCERT and CBSE to bring certified educational games into classrooms.

The Online Gaming Authority

The Central Government may constitute a new Authority or designate an existing body to categorise and register games, decide whether a game is an online money game, issue codes of practice, act on user complaints and block unlawful platforms, including offshore ones. Its composition is to be prescribed. The power to decide what counts as a money game comes without a defined test, which matters given the Supreme Court’s long-standing recognition that no game is entirely free of chance. The Authority’s effectiveness will depend on clear definitions, independent and expert membership, and coordination with the sports and IT ministries.