Fantasy sports and other pay-to-play online games may soon face tighter checks, with draft government rules spelling out when a game crosses the line into prohibited money gaming.
According to the rules, the proposed Online Gaming Authority of India will decide whether a game qualifies as an “online money game.” The test will look at whether a game involves stakes or wagers, requires users to make deposits before playing, or offers winnings and rewards that can be converted to money.
If a game is declared an online money game, the Authority can order it to stop immediately, ban its advertising and promotion, and add it to a public list of prohibited titles. Such games will also not be eligible for recognition as e-sports.
How an 'online money game' will be decided
The Authority may, on its own motion or after an application, determine whether a game is an online money game by looking at a set of parameters. Key factors listed in the rules are whether the game:
- Involves money or other stakes (fees, deposits or purchases during play) that amount to a stake or wager;
- Uses payment of fees or deposits as consideration for participation or as a stake for winning;
- Requires prior deposit or payment as a precondition to participate; or
- provides winnings, rewards or payouts that are redeemable, convertible to, or encashable as money.
The Authority may call for additional information from the provider to make this determination.
Consequences if a game is labelled an online money game
{{/usCountry}}The Authority may call for additional information from the provider to make this determination.
Consequences if a game is labelled an online money game
{{/usCountry}}If the Authority determines a game is an online money game, it has discretion to:
- Direct the provider to cease offering the game immediately;
- Prohibit advertising, promotion or facilitation of the game;
- Initiate prescribed further action under the Act (including under section 14); and
- Publish a list of online money games on its website.
The rules also say games determined to be online money games cannot be recognised as e-sports under the National Sports Governance Act, 2025.
Also read: Online money game rules violation non-bailable: Centre in new draft
Registration, certificates and timeframes
Operators may apply to the Authority to have an online title recognised and registered as an online social game or an e-sport. The rules set out application requirements (name and description of the game, revenue model, age group, user-safety features, grievance mechanisms and other details) and time limits:
The Authority is required to register an online social game or an e-sport within a reasonable time not exceeding 90 days from the date of first application (subject to limited exclusions for e-sport recognition timelines).
On registration, the Authority issues a Certificate of Registration with a unique number. The certificate may be valid for up to five years, as chosen by the provider at application time.
Providers must inform the Authority of any material change in the nature or revenue model of a registered game (changes likely to turn a social game into an online money game fall squarely under this term).
Suspension, cancellation and penalties
The draft rules give the Authority powers to suspend or cancel Certificates of Registration where grounds exist, including where: a material change would make the game an online money game; there are repeated or continued violations of applicable directions; false statements were made in the registration application; or the provider has not complied with relevant directions, codes or orders.
Where cancellation follows a finding that a registered game now qualifies as an online money game, the Authority can cancel the certificate, initiate further actions (including directing banks, payment facilitators and other service providers to act or refrain from acting) and prohibit the provider from offering the game. Penalties may be imposed under the Act; unpaid penalties may be recovered as if they were arrears of land revenue.
What this means for fantasy and skill-based models
Under the rules’ test, any fantasy-sports, skill-game or pay-to-play title that relies on prior deposits, fees treated as stakes, or offers convertible/encashable payouts could risk classification as an online money game. That classification triggers immediate stopping of the game, bans on promotion, public listing as an online money game and potential suspension or cancellation of registration — with the additional risk of penalties and enforcement actions against payment and facilitation partners.
Conversely, games whose revenue models are explicitly not stake-based (advertising, subscriptions or one-time access fees where payments are not used as stakes or for redeemable/convertible payouts) are framed by the rules as the category of online social games that may be registered and promoted, subject to compliance with user-safety and grievance requirements.