Ranjana Adhikari: “Outright bans rarely eliminate demand but simply displace it towards illegal or unregulated platforms”

Legal expert Ranjana Adhikari analyses the impact of the Promotion and Regulation of Online Gaming Act on operators, investment, innovation, and the road ahead.

Exclusive interview.- India’s online gaming industry has been severely disrupted by the Promotion and Regulation of Online Gaming Act, 2025 (PROGA), which bans online money games. In an exclusive interview with Focus Gaming News, Ranjana Adhikari, a leading legal and digital economy expert, examines the legal, economic, and technological implications.

Reflecting on 2025, what have been the most significant legal and regulatory developments in the Indian gaming sector, and how are these shaping the industry’s future?

Undoubtedly, the most significant legal and regulatory development for the Indian gaming sector in 2025 has been the Promotion and Regulation of Online Gaming Act, 2025 (“PROGA”). The PROGA (though not in force, yet) imposes a blanket prohibition on “online money games” irrespective of skill or chance, triggering an abrupt cessation of all online real-money gaming (“RMG”) operations in India and causing large-scale disruption across the Indian online gaming ecosystem. Since RMGs were the primary contributors to the sector’s revenues (~80 per cent as per FICCI-EY’s 2024-25 report), PROGA will have a significant impact on the online gaming ecosystem’s prospects and projections.

“The PROGA imposes a blanket prohibition on “online money games” irrespective of skill or chance.”

Ranjana Adhikari, legal and digital economy expert.

How has the introduction of the Promotion and Regulation of Online Gaming Act, 2025, impacted compliance requirements for operators, and what challenges have emerged in its implementation?

The PROGA imposes a blanket prohibition on “online money games” irrespective of skill or chance. The skill-based RMG vertical not only attracted investments but also created jobs, generated substantial tax revenues, and nurtured entrepreneurs. Leading RMG operators have already shut down their India RMG operations and are mulling pivoting to (a) foreign markets; (b) permissible gaming offerings; and (c) new business verticals. Other implications on the sector will ultimately turn on the contours and pace of subordinate legislation under PROGA, including guidelines/clarifications that may be issued by the proposed Online Gaming Authority (“Authority”) on aspects such as monetisation models.

In your experience advising gaming companies, what are the key legal risks and opportunities they face under the new regulatory framework?

The PROGA simultaneously (i) regulates and promotes e-sports and online social games, and (ii) imposes a blanket prohibition on “online money games” and “online money gaming service”. Though the law is yet to come into force, the blanket ban essentially means that RMG offerings (money in and money out) will no longer be legal. Contravention entails harsh criminal penalties, including for those who advertise these offerings and/or those who enable funds transfers to facilitate the offerings. As far as the promotion and regulation of e-sports and online social game is concerned, PROGA provides sufficient scope for the growth of esports and social/casual gaming formats, but operators will need time to reshape offerings to replace their lost RMG-revenue streams.

Also, India’s engineering strengths position it well for serving as global capability centres (GCCs) of foreign operators, and a global hub for export of gaming infrastructure, tools, and allied services. Further, if the Authority publishes dedicated and clear guidelines on permissible conduct/offerings under PROGA, investors can underwrite social gaming and esports projects with greater confidence, accelerating the shift to sustainable, non-RMG-based models.

Given the influence of rapid technological advancements such as blockchain and AI on gaming, how do you think Indian gaming law is adapting to ensure robust regulation without restricting innovation?

Digital economies flourish under balanced and nuanced regulatory frameworks which are grounded in evidence, stakeholder consultation and risk-based assessments. Such regulatory frameworks provide the necessary user safeguards while simultaneously fostering innovation, attracting investment, generating employment and promoting long-term economic growth. But, unfortunately, PROGA was passed by both Houses of the Parliament with minimal discussion about its impact and no industry/stakeholder consultation was done. Such an approach has far-reaching consequences, especially in sunrise sectors of the digital economy that flourish in environments supporting innovation.

“PROGA was passed by both Houses of the Parliament with minimal discussion about its impact and no industry/stakeholder consultation was done.”

Ranjana Adhikari, legal and digital economy expert.

What measures do you see as critical for strengthening responsible gaming practices and protecting consumer interests within India’s evolving legal landscape?

Evidence suggests that outright bans rarely eliminate demand but simply displace it towards illegal or unregulated platforms. PROGA’s blanket prohibition-led regime, accordingly, risks displacing demand to such platforms, as seen in earlier state-level bans that pushed users to these platforms (via VPNs or mirror URLs). However, the blocking powers under PROGA, read with its express extraterritorial application is likely to curb illegal platforms, including their payments and advertising. Cooperation of LEAs with search engines, app stores, and ISPs is likely to result in speedier blocking of violators.

Looking ahead to 2026, which legal or regulatory trends should industry stakeholders monitor closely, and what changes might they anticipate in India’s gaming regulation environment?

Though enacted, the PROGA is yet to come into force. Draft Rules under the PROGA were released for public consultation in October 2025. In 2026, for India’s gaming regulation, everything will depend on these two pieces of law, not just because of what’s in them, but also to see how the federal government will implement and enforce them. For instance, for online social games, PROGA read with the Draft Rules contemplate voluntary registration pathways, whilst permitting subscription and ad-based monetisation models insofar as winnings are not offered to users in return of deposits/payments. However, the proposed Authority’s broad enforcement powers could create a chilling effect if banks and advertisers are overcautious, given the PROGA’s harsh criminal penalties. Market studies indicated double-digit growth rates for casual and esports verticals pre-PROGA, suggesting latent demand that could scale with regulatory clarity and support from the government and the Authority.

A lot in 2026 will also depend on how the challenge to the PROGA pans out before the Supreme Court of India. Skill gaming companies and some gamers have challenged the constitutional validity of PROGA on the ground that skill games are protected under the Indian Constitution’s fundamental rights and hence a blanket ban cannot be imposed on them. The matter is still at a preliminary stage and is now expected to come up for hearing in January 2026

Legal expert Ranjana Adhikari analyses the impact of the Promotion and Regulation of Online Gaming Act on operators, investment, innovation, and the road ahead. Exclusive interview.- India’s online gaming industry…