Gaming
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AIGDF warns of compliance confusion, calls for clarity in online gaming law
An All India Game Developers Forum study cited that PROGA places esports oversight under a central authority but does not specify whether a new body will be created or an existing one designated.
The report states that community-driven tournaments, small prize-pool competitions, and publisher-led events blur the line between esports and OSGs.
The Promotion and Regulation of Online Gaming Act, 2025 (PROGA), hailed as a landmark law for India’s digital entertainment sector, has raised as many questions as it has answered. While the Act provides long-awaited recognition for esports and clarity for online social games (OSGs), its operational details remain uncertain, leaving developers, publishers, and tournament organizers seeking urgent clarifications.
An All India Game Developers Forum study cited that PROGA places esports oversight under a central authority but does not specify whether a new body will be created or an existing one designated. With esports recognition also tied to the National Sports Governance Act—yet to be implemented—the immediate regulatory pathway remains unclear. Industry players are asking: will the same authority handle esports and OSGs, or will responsibilities be split across multiple bodies?
The report states that community-driven tournaments, small prize-pool competitions, and publisher-led events blur the line between esports and OSGs. Should a university tournament with modest prizes be treated as esports, or as a social game? Similarly, when publishers like Krafton run their own esports leagues for games such as BGMI, do these fall under game regulation or tournament regulation? Developers and organizers are waiting for clarity on how hybrid formats will be classified.
The Act defines three categories—Online Money Games (banned), OSGs, and esports—but does not explain how emerging formats outside these definitions will be treated. Experimental or community-based models that don’t fit neatly into existing boxes may be left in limbo, raising concerns among investors and indie studios.
India hosts lakhs of casual and social games, many by small developers without a local corporate presence. Applying the same compliance burden to every game may overwhelm smaller studios. Stakeholders are asking whether threshold-based criteria—downloads, revenue, or active users—will determine which games must formally register with the authority.
An AIGDF spokerperson said, "PROGA empowers the government to regulate not just financial aspects but also content, advertising, and user protections. Yet India lacks a domestic content rating system, relying instead on international labels such as ESRB or PEGI. Will a new age-rating system be introduced, and if so, how will it impact game releases and app store approvals?"
Much of PROGA’s implementation is delegated to forthcoming rules and guidelines, from registration processes to compliance obligations. Until these are notified, the industry is left guessing how the law will work in practice.
For now, the All India Game Developers Forum (AIGDF) is urging members to prepare for compliance but is also pushing for early consultations with government to resolve ambiguities. As the Act moves from paper to practice, the answers to these open questions will determine whether India’s gaming sector thrives under regulation or struggles under uncertainty.
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