Online Gaming Act to be implemented from Oct 1: Ashwini Vaishnaw

The Promotion and Regulation of Online Gaming Act (PROGA), which bans all forms of online money games, will officially come into force on October 1, Union IT Minister Ashwini Vaishnaw confirmed on Thursday. The Act, passed by Parliament in August 2025, seeks to curb rising concerns around addiction, money laundering, and financial fraud, while encouraging e-sports and other non-monetary online formats.

Announcing the enforcement timeline at a press conference ahead of the AI Impact Summit 2026 India, Vaishnaw stressed that the government had followed a consultative approach throughout the law’s drafting and passage. “We have held multiple discussions with the industry over nearly three years. After the law was passed, we again consulted gaming platforms, banks, and practically every stakeholder involved. The rules have now been finalized,” he said. The minister added that the government would hold one more round of talks before the law takes effect, and indicated willingness to extend discussions if necessary. “Our approach has always been consultative. But as of now, we are targeting October 1 for implementation,” he noted.

Major platforms halt operations

Even ahead of the deadline, leading online gaming companies have begun winding down their cash-based services. Dream11, My11Circle, WinZO, MPL, Zupee, PokerBaazi, Paytm First Games, Gameskraft, Cricbuzz11, and Probo are among the biggest platforms to suspend real-money operations.

Most firms have assured users that their funds remain safe and can be withdrawn, though no new “cash contests” or deposits are being accepted. Industry analysts estimate that more than 300 gaming startups may be forced to close their real-money operations, with widespread layoffs expected across the sector. Listed companies in the online gaming and allied industries also saw their stock values tumble following the announcements, reflecting investor concerns about the sudden revenue disruption.

Stakeholder concerns and Refund

One of the primary challenges has been refunding the balances held in millions of user accounts. After multiple meetings with banks and payment gateways, the government has said a viable mechanism is in place to ensure smooth withdrawals. Fintech players like PhonePe, Razorpay, NPCI, and leading banks have requested detailed guidelines from the RBI to distinguish legitimate transactions from banned gaming payments.

Industry representatives have also appealed for clear categorization of permissible formats such as casual games, skill-based competitions, and e-sports since the law’s definitions leave some grey areas. MeitY has promised FAQs, clarifications, and transition rules, assuring that ordinary bank accounts of users will not be penalized for past activity.

Pushback from industry

Gaming associations such as AIGF, EGF, and FIFS have urged the government to reconsider an outright ban, instead suggesting a licensing and regulatory framework. They argue the sector contributes over ₹20,000 crore in taxes annually and provides direct and indirect employment to nearly two lakh people. The government, however, has not signaled any change of course, reiterating that consumer safety and financial integrity remain the priority.

Outlook

With PROGA set to kick in from October 1, the real-money gaming segment in India faces an unprecedented shutdown. The government has tasked nodal ministries across IT, Sports, Telecom, and I&B with overseeing the transition. Key priorities include refunding user balances, protecting consumers, and encouraging companies to pivot toward e-sports, casual games, and subscription-driven models. For India’s online gaming industry, the weeks ahead mark a turbulent new chapter, one where survival will depend on innovation beyond money games, as the government balances regulation, industry disruption, and consumer protection.