What new online gaming rules could mean for fantasy sports, and real-money games

By Admin

03 Oct, 2025

India’s online gaming sector one of the fastest-growing digital industries   may be set for a dramatic shift with the introduction of new draft rules. These rules propose stricter regulations for fantasy sports, pay-to-play titles, and other online games involving real money, potentially changing the way companies operate and how players participate.

Stricter Checks on Online Money Games

The draft rules spell out conditions under which a game will qualify as an “online money game.” The proposed Online Gaming Authority of India will serve as the decision-maker, examining whether a game involves real stakes, prior deposits, or payouts that can be redeemed as cash.

A game may be declared an online money game if it:

• Involves fees, deposits, or purchases treated as stakes or wagers;
  
  

• Requires players to pay before participating;
  
  

• Offers winnings or rewards that can be encashed or converted into money.
  
  

If deemed an online money game, the Authority can order an immediate halt to the game, ban its advertising, and add it to a public list of prohibited titles. Crucially, such games will also be ineligible for recognition as e-sports.

Consequences for Providers

The implications of classification as an online money game are serious. Once a game is labeled as such, the Authority may:

• Direct providers to stop offering the game immediately;
  
  

• Prohibit any advertising or promotion;
  
  

• Initiate further actions under the law, including financial restrictions;
  
  

• Publicly list the game as prohibited.
  
  

This means operators in the fantasy sports or real-money space risk sudden suspension and penalties if their games fall under this definition.

Registration and Certification Framework

To operate lawfully, online game providers may apply for recognition of their titles as either online social games or e-sports. Applications must include details such as the game’s description, revenue model, user safety features, and grievance mechanisms.

• The Authority must register a qualifying title within 90 days of application.
  
  

• Successful applicants will receive a Certificate of Registration, valid for up to five years.
  
  

• Providers are obligated to inform the Authority if their revenue model or game structure changes   especially if changes risk transforming a social game into an online money game.
  
  

Suspension, Cancellation, and Penalties

The Authority will have powers to suspend or cancel registrations if providers:

• Make false statements in their applications,
  
  

• Repeatedly violate rules,
  
  

• Fail to comply with directions or codes of conduct, or
  
  

• Alter the nature of the game in ways that convert it into an online money game.
  
  

Where certificates are cancelled, the Authority may also direct banks and payment facilitators to cease support for the provider. Penalties imposed under the Act may be recovered as arrears of land revenue, underlining the financial risks for non-compliance.

What It Means for Fantasy Sports and Skill-Based Games

For fantasy sports operators and skill-based game providers, the draft rules represent both a risk and a potential safeguard.

• At Risk: Games involving deposits, stake-like entry fees, or payouts convertible to cash could be reclassified as online money games. This would lead to immediate cessation, promotion bans, and possible penalties.
  
  

• Safer Category: Games monetized through advertising, subscriptions, or non-stake-based access fees are likely to be framed as online social games, eligible for registration and legal operation.
  
  

This distinction could encourage companies to rethink revenue models, shifting away from stake-based mechanisms toward more sustainable and compliant formats.

Conclusion

The draft rules mark a turning point in India’s online gaming landscape. By clearly distinguishing between social/skill-based games and online money games, the government aims to regulate pay-to-play models more strictly while supporting the growth of compliant e-sports and online social games.

For fantasy sports platforms and real-money operators, however, the challenge is immediate   to adapt business models to avoid being classified as prohibited money games, while ensuring compliance with new user-safety, registration, and reporting requirements.

As the industry waits for final notification, the stakes could not be higher: the future of fantasy sports and real-money gaming in India may well hinge on the fine print of these new rules.