Online gaming firms fear costs going up on reset of rules

THE ONLINE GAMING sector may face higher compliance costs if the draft Promotion and Regulation of Online Gaming Rules, 2025, released for consultations by the electronics and IT ministry on Thursday, gets finalised without changes.

- ANEES HUSSAIN & OJASVI GUPTA

While the framework is being seen as a step towards long-awaited regulatory clarity, analysts and legal experts said that registration, reporting obligations and in-house grievance systems will see costs rising, especially for smaller firms. For instance, Rule 17 requires gaming companies to notify the proposed Online Gaming Authority of India (OGAI) of any “material change” in game features or revenue models. Analysts said that the provision is intended to prevent legitimate games from being converted into prohibited online money games, but smaller players may find it onerous.

"The compliance cost and burden will definitely rise, but then the rules are for greater public good and strengthening the proposed regulatory authority," Pavan Duggal, cyber law expert, told FE. "However, these draft rules are for consultation so one needs to wait and see their final shape," he added.