The Promotion and Regulation of Online Gaming Act 2025 is India's new federal law that bans all online games involving real money, regardless of whether they are skill-based or chance-based. The law was passed in August 2025 but has not yet been formally notified.

When will PROGA take effect?

PROGA awaits formal notification by the central government before taking legal effect. The law is currently facing a constitutional challenge in India's Supreme Court, with hearings scheduled for January 21, 2026 - just days away.

Does PROGA ban all online gaming?

No. PROGA permits e-sports that meet strict recognition requirements under the National Sports Governance Act 2025 and social games that charge subscription fees but offer no monetary prizes. All other games involving money stakes and winnings are prohibited.

What are the penalties for violating PROGA?

Operating online money gaming services carries up to three years imprisonment and ₹1 crore fines. Advertising violations bring two years imprisonment and ₹50 lakh fines. These offenses are classified as cognisable and non-bailable.

Why is Karnataka challenging PROGA?

Karnataka proposed legalizing online horse racing betting based on its state authority under Entry 34 of the Constitution, which grants states power over betting and gambling. This directly conflicts with PROGA's claim of overriding federal authority.

How has PROGA affected gaming companies?

Major gaming platforms report zero revenue, frozen payment systems, and massive workforce reductions even before PROGA's formal notification. One foreign investor wrote off ₹760 crore in Indian gaming investments citing the adverse regulatory environment.

Can the Supreme Court overturn PROGA?

Yes. The Supreme Court can strike down PROGA if it determines the law violates constitutional provisions regarding legislative competence or fundamental rights. The Court's ruling expected within weeks will determine the law's fate.

What happens to existing gaming accounts?

PROGA does not specify treatment of existing user accounts or balances. Industry legal experts expect the Draft Rules to address withdrawal procedures and wind-down timelines if the law takes effect after Supreme Court review.

Will VPNs allow users to bypass PROGA?

PROGA includes provisions for blocking offshore gaming sites and grants extraterritorial application. However, enforcement faces practical challenges similar to those encountered with other internet content restrictions. Users may access offshore platforms through VPNs, though this carries legal risks.

What is the difference between e-sports and online money games under PROGA?

E-sports must be recognized under the National Sports Governance Act 2025, registered with the Online Gaming Authority, conducted in organized multiplayer tournaments, and governed by pre-defined rules. Online money games are all other games involving monetary stakes and winnings.

India's Gaming Industry Faces Shutdown: Understanding PROGA 2025's Blanket Ban

Rohan

Jan 16, 2026

•

12 min read

No content available.

Cryptocurrency Regulation Gaming Industry News India Gaming Regulation PROGA 2025

Live Prices

We use cookies to improve your user experience.