The Ministry of Electronics and Information Technology (MeitY) on July 29, 2026, issued advisory on Establishing internal systems, procedures, checks and safeguards to prohibit offering, aiding of Online Money Games and prohibit advertisement and financial enablement with respect to Online Money Games.
The Promotion and Regulation of Online Gaming Act, 2025 ("PROG Act"), which came into force on May 1, 2026, prohibits the offering, operation, facilitation, advertisement, and promotion of online money games, with the stated aim of protecting individuals — particularly youth and vulnerable populations — from adverse social, economic, psychological, and privacy-related harms, while also safeguarding public order, public health, the integrity of the financial system, and the security and sovereignty of the State. Under Sections 8(1) and 8(2) of the Act, the Central Government has constituted an Authority empowered to determine whether a given online game qualifies as an online money game, and to recognize, register, and categorize online games.
The Act imposes three core prohibitions: Section 5 bars any person from offering, aiding, abetting, inducing, or otherwise engaging in the offering of an online money game or online money gaming service; Section 6 bars any advertisement that directly or indirectly promotes or induces participation in an online money game; and Section 7 bars banks, financial institutions, or any other person from facilitating financial transactions or fund authorizations for payment toward any online money game. These prohibitions are clarified to extend beyond primary operators to any person — anywhere in the supporting ecosystem — who aids, abets, induces, promotes, or facilitates such services, making the entire chain of enablement liable under the Act.
The Authority has noted that diverse categories of entities are potentially involved in violations of Sections 5, 6, and 7, including application stores, cloud service providers, telecom and internet service providers, banks and financial institutions (and any person facilitating fund transactions), social media intermediaries, OTT platforms, and advertising agencies. All such persons are directed to immediately review their internal policies to suspend non-compliant activities — including disabling or refusing to host online money gaming applications, blocking transactions or fund authorizations for such services, and ceasing any advertisement promoting online money games — and to build appropriate automated or manual internal compliance systems, procedures, checks, and safeguards suited to their business.
Non-compliance is stated to be viewed seriously and may result in blocking of information relating to online money gaming services under Section 14 of the Act. Section 9 prescribes penalties: violation of Section 5 attracts up to 3 years' imprisonment and/or a fine up to ₹1 crore (3–5 years and ₹1–2 crore for repeat offences); violation of Section 6 attracts up to 2 years' imprisonment and/or a fine up to ₹50 lakh (2–3 years and ₹50 lakh–₹1 crore for repeat offences); and violation of Section 7 attracts up to 3 years' imprisonment and/or a fine up to ₹1 crore (3–5 years and ₹1–2 crore for repeat offences). The advisory is issued with the approval of the Competent Authority in the Ministry, without prejudice to any other action the Government or law enforcement agencies may take under any other applicable law.
