The government has unveiled stringent draft rules under the Promotion and Regulation of Online Gaming (PROG) Act, 2025, proposing severe penalties for entities violating the ban on online money gaming. If implemented, offences would become non-bailable, and liability would extend to the entire company staff involved in facilitating such activities.
Non-bailable offences proposed
According to the draft rules released Thursday, any breach of the provisions under Sections 5 and 7 of the Act will be considered cognizable and non-bailable. This means offenders can be arrested without a warrant and denied bail. The rules state: "Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023, offences under Section 5 and Section 7 shall be cognizable and non-bailable."
Scope of Sections 5 and 7
- Section 5 prohibits companies or individuals from offering, aiding, abetting, inducing, or engaging in online money games and money gaming services.
- Section 7 bars banks, financial institutions, or any other entities from facilitating financial transactions linked to online money gaming services.
- Under the new framework, employees of such companies, not just promoters or owners, could also be held liable.
Powers of search and arrest
The draft rules propose wide powers for enforcement authorities. Any authorised officer will be empowered to-
- Enter physical or digital premises where violations are suspected.
- Conduct searches of locations, digital systems, and devices.
- Arrest, without warrant, any person suspected of committing or about to commit an offence under the Act.
Immunity for enforcement officers
The proposed rules also shield authorised officers from lawsuits or legal proceedings while conducting searches and arrests under the Act. This is aimed at giving sweeping operational freedom to enforcement agencies in tackling online gaming violations.
Legislative background
The PROG Act, 2025, received the President’s assent on August 22 after being passed by Parliament earlier in the month.
The Act outrightly bans-
- Online money games and money-based gaming services.
- Promotion and advertisement of such platforms in India.
- The Ministry of Electronics and Information Technology (MeitY) drafted these rules under Section 19 of the PROG Act to provide clarity on enforcement and regulatory mechanisms.
Public feedback
MeitY has invited feedback from stakeholders, legal experts, companies, and the public. Suggestions and comments on the draft proposal can be submitted until October 31, 2025.
