REAL-MONEY GAMING IN INDIA
however such prohibitions may subsequently be introduced through directions by the OGAI. Additionally, registered social games may be advertised and represented as being registered under the Act. 39 It also appears that registered social games may be eligible for certain support and incentives. 40 It is unclear whether foreign operators are eligible for registration. The Draft Rules require an application to be made by the online game service provider in the prescribed form, and empower the OGAI to seek information such as the age group to whom the online game is intended to be offered, revenue model, user safety features, and grievance redressal provisions, amongst others. 41 Applicants must provide an undertaking that they will not contravene applicable laws. 42 Subsequently, the OGAI will make a determination that the online game is not an online money game. 43 The need for a registration mechanism has been questioned by the industry, which has highlighted concerns about registered service providers being disadvantaged as compared to unregistered providers, since only registered service providers appear to be subject to certain obligations such as grievance redressal, under the Draft Rules.
The Act prohibits any person from making, causing to be made, or otherwise being involved in the making or causing to be made of any advertisement in any media, including electronic modes of communication, which directly or indirectly promotes/ induces any person to play any online game, or indulging in any activity promoting online money gaming. 44 In the first instance, this offence is punishable by imprisonment for up to two years, or with a fine of up to INR 50 lakhs (approximately US$56,400), or both. 45 The scope of this prohibition is notably expansive, extending to entities that are “otherwise involved in the making or causing to be made of any advertisement” and those engaged in “any activity promoting online money gaming.” In practice, this could also encompass intermediary platforms – such as social media networks or app stores – that merely host advertisements for real money games.
(ii)
Prohibition on transfer of funds
The Act prohibits banks and financial institutions from facilitating any transaction or authorization of funds towards payment for any online money gaming service. 46 At the first instance, this offence is punishable by imprisonment for up to three years, or with a fine of up to INR 1 crore (approximately US$113,000), 47 or both. In order to operationalise this prohibition, the Government has convened meetings with banks, fintech companies and other financial sector participants to discuss implementation measures, including blocking payments to prohibited platforms, preventing circumvention through alternative channels, and facilitating refunds of customer balances. 48 The Draft Rules provide safe harbour to banks and financial institutions, amongst others, for the limited purpose of remitting back user funds. 49
Prohibitions in connection with online money games
Apart from the operators, i.e., the online game service providers, service providers to online money games involved in their offering and advertising, and investors in such businesses, may face liability under the Act. This is a novel feature absent from most State anti-gambling statutes, and appears to have been introduced to impose accountability on the wider gaming ecosystem.
(i)
Advertisement prohibition
39 Rule 16, Draft Rules 40 Draft Rule 18(7) 41 Rule 12, Draft Rules
42 Rule 12(4) 43 Rule 13(1) 44 Promotion and Regulation of Online Gaming Act, 2025, § 6. 45 Section 9(2), Act 46 Section 7, Act 47 Section 9(3), Act 48 https://www.business-standard.com/finance/news/govt-meet-banks-fintechs-online-gaming-act-rollout-august-29-125082801443_1.html 49 Rule 24, Draft Rules
IMGL MAGAZINE | DECEMBER 2025
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