{"id":74523,"date":"2026-05-22T17:59:08","date_gmt":"2026-05-22T12:29:08","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=74523"},"modified":"2026-05-22T18:03:27","modified_gmt":"2026-05-22T12:33:27","slug":"online-gaming-regulation-india-2","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/22-05-2026\/online-gaming-regulation-india-2","title":{"rendered":"Online Gaming Regulation in India: Rethinking the PROG Act, 2025"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/Governance<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>Promotion and Regulation of Online Gaming (PROG) Act, 2025<\/strong> was enacted to protect citizens from the harms associated with online real-money gaming and betting platforms. However, it appears to have pushed users toward <strong>illegal offshore betting platforms<\/strong> instead of reducing gambling activities.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Online Gaming in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.nextias.com\/ca\/editorial-analysis\/27-03-2026\/online-gaming-regulation-india\">Online gaming in India<\/a> <\/strong>includes <strong>casual games<\/strong> (puzzle, strategy, fantasy sports), <strong>Real Money Gaming (RMG)<\/strong> platforms, <strong>online betting and gambling platforms, e-sports and competitive gaming.<\/strong><\/li>\n\n\n\n<li>It has witnessed rapid digital expansion due to rising smartphone penetration, cheap internet access, digital payment systems, and young demographic profile.\n<ul class=\"wp-block-list\">\n<li>India today is among the world\u2019s largest online gaming markets.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Growth of the Online Gaming Sector in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India has over <strong>500 million gamers<\/strong>, and it is projected to grow significantly due to expansion of 5G services, digital payments ecosystem, increased investor interest, growth of esports and fantasy gaming.<\/li>\n\n\n\n<li>Around <strong>80% of gamers worldwide are adults<\/strong>, with the <strong>largest group ages 18\u201334<\/strong>, while the <strong>average gamer is in their mid-30s.<\/strong><\/li>\n\n\n\n<li><strong>Mobile gaming<\/strong> has emerged as the <strong>dominant platform, <\/strong>with <strong>3.6 billion players globally.<\/strong><\/li>\n\n\n\n<li>The online gaming industry contributes through employment generation, start-up ecosystem growth, tax revenues, and technological innovation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Governance Framework of Online Gaming<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Existing Regulatory Structure: <\/strong>Online gaming regulation in India remains fragmented.<\/li>\n\n\n\n<li><strong>Constitutional Position: Betting and gambling<\/strong> fall under the <strong>State List (Entry 34)<\/strong> of the Constitution.\n<ul class=\"wp-block-list\">\n<li>States can legislate independently on gambling activities.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Union Government Oversight: <\/strong>The <strong>Ministry of Electronics and Information Technology (MeitY)<\/strong> regulates online intermediaries under <strong>Information Technology Act, 2000 and IT Rules, 2021.<\/strong><\/li>\n\n\n\n<li><strong>Recent Measures: <\/strong>The Centre has blocked thousands of illegal betting URLs, issued advisories against offshore betting apps, and strengthened cybercrime monitoring.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Rationale Behind the PROG Act, 2025<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The PROG Act was introduced to protect youth from gambling addiction, prevent financial exploitation, reduce psychological harm, safeguard digital privacy, and counter money laundering through betting networks.<\/li>\n\n\n\n<li>The legislation aimed to prohibit or heavily restrict online money gaming platforms perceived as harmful.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance of PROG Act, 2025<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Formalisation of the Sector: <\/strong>Brings clarity, improves <strong>investor confidence<\/strong>, and ensures compliance.<\/li>\n\n\n\n<li><strong>Boost to E-sports Ecosystem: <\/strong>Recognition of e-sports as a <strong>legitimate industry<\/strong> aligns with global trends.<\/li>\n\n\n\n<li><strong>Strengthening Digital Governance: <\/strong>Reflects India\u2019s move toward <strong>platform regulation and digital accountability<\/strong>.<\/li>\n\n\n\n<li><strong>Consumer-Centric Approach: <\/strong>Prioritises <strong>user safety over profit-driven gaming models<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Issues and Concerns in the Current Framework<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rise in Offshore Platform Usage: <\/strong>Evidence suggests that users shifted from regulated domestic platforms to illegal offshore websites after the ban.\n<ul class=\"wp-block-list\">\n<li>A study by <strong>CUTS International<\/strong> reported that offshore participation in Delhi NCR rose from <strong>68.3% to 82%; <\/strong>Tamil Nadu from <strong>67.8% to 83%; <\/strong>and Maharashtra from <strong>66.7% to 91.7%.<\/strong><\/li>\n\n\n\n<li>It indicates that prohibition did not eliminate demand; it merely redirected users to less accountable platforms.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Challenges in Enforcement: <\/strong>Offshore operators use advanced evasion methods such as VPNs, proxy servers, mirror websites, and encrypted messaging platforms like Telegram and WhatsApp.\n<ul class=\"wp-block-list\">\n<li>Authorities often struggle to block these networks effectively because users quickly migrate to new domains.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Cybercrime and Financial Fraud: <\/strong>Illegal betting ecosystems are increasingly linked with money laundering, hawala transactions, identity theft, and fraudulent investment schemes.\n<ul class=\"wp-block-list\">\n<li>Fraudsters used \u2018mule bank accounts\u2019 opened through poor villagers to route illicit money.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Weak Consumer Protection: <\/strong>When users engage with offshore platforms, Indian laws have limited reach, grievance redress becomes difficult, users lack legal remedies, and data protection standards are absent.\n<ul class=\"wp-block-list\">\n<li>It creates a major regulatory vacuum.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Limitations of Blanket Bans: <\/strong>Paternalistic bans often push activities underground, encourage illegal markets, and reduce state oversight, and increase criminal involvement.\n<ul class=\"wp-block-list\">\n<li>Digital products are especially difficult to ban because online access can bypass territorial restrictions.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Global Examples<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>United Arab Emirates (UAE): <\/strong>It introduced a federal licensing framework, strict compliance standards, deposit limits, and consumer safeguards despite historically prohibiting gambling.\n<ul class=\"wp-block-list\">\n<li>The objective was to reduce risks from unregulated offshore activity.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Sri Lanka: <\/strong>Sri Lanka is establishing a <strong>centralised Gambling Regulatory Authority<\/strong>, expected to become operational by 2026, to regulate offshore online gaming within a domestic legal framework.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward: Regulation or Ban?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Shift Toward Regulated Frameworks: <\/strong>India may consider licensing genuine operators, mandatory KYC verification, deposit and spending limits, age restrictions, and responsible gaming tools.<\/li>\n\n\n\n<li><strong>Strengthen Cyber Enforcement: <\/strong>Authorities should improve real-time monitoring systems, AI-driven fraud detection, coordination between States and Centre, and international cooperation against offshore operators.<\/li>\n\n\n\n<li><strong>Consumer Protection Measures: <\/strong>A robust framework needs to include grievance redressal mechanisms, data privacy safeguards, transparency in gaming algorithms, and mandatory warnings for addictive behaviour.<\/li>\n\n\n\n<li><strong>Public Awareness Campaigns: <\/strong>Awareness programmes should educate users about financial risks, fraudulent platforms, addiction-related harms, and safe digital practices.<\/li>\n\n\n\n<li><strong>Revenue Utilisation: <\/strong>Tax revenue from regulated gaming can support addiction counselling, cybercrime enforcement, public awareness initiatives, and digital literacy programmes.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q]<\/strong> Examine the challenges associated with online gaming regulation in India. Discuss whether a regulated framework is more effective than prohibition in addressing issues such as cybercrime, addiction, financial fraud and consumer protection.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/regulation-not-bans-can-protect-online-gamers\/article71007480.ece\" target=\"_blank\" rel=\"noopener\">Source: TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Published on:<\/strong> 22 may, 2026<\/p>\n<p>The Promotion and Regulation of Online Gaming (PROG) Act, 2025 was enacted to protect citizens from the harms associated with online real-money gaming and betting platforms. However, it appears to have pushed users toward illegal offshore betting platforms instead of reducing gambling activities.<\/p>\n","protected":false},"author":15,"featured_media":74527,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-74523","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/05\/online-gaming-regulation-in-india.webp","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/74523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=74523"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/74523\/revisions"}],"predecessor-version":[{"id":74526,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/74523\/revisions\/74526"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/74527"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=74523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=74523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=74523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}