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17 June 2026 4 views

PROG Act 2025 — Prohibition of Realty-based Online Gaming Act

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theIAShub
17 Jun, 2026
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PROG Act 2025 — Prohibition of Realty-based Online Gaming Act
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Legislative framework to regulate online gaming, distinguishing between games of skill and chance, and preventing gambling-related harm.

Why in News

Editorial analysis highlights the PROG Act 2025 as India's response to the online gaming dilemma, balancing innovation with consumer protection and revenue concerns.

Key Facts

  • Full formProhibition of Realty-based Online Gaming Act, 2025, aimed at regulating the burgeoning online gaming industry.
  • Key distinction — Differentiates between games of skill (permissible) and games of chance (prohibited if involving money). (UPSC Mains Usage: Article 19(1)(g) - Freedom to practice any profession)
  • Regulatory authority — Establishes a Self-Regulatory Organization (SRO) under the Ministry of Electronics and Information Technology (MeitY).
  • Market size — India's online gaming industry valued at $2.6 billion in 2022, projected to reach $5 billion by 2025.
  • Constitutional peg — Gaming regulation falls under Entry 34, List II (State List) of the Seventh Schedule, creating Centre-State jurisdiction complexity. (UPSC Mains Usage: Federal structure and concurrent powers)
  • Revenue mechanism — Introduces 28% GST on online gaming platforms' Gross Gaming Revenue (GGR), not full deposits.
  • KYC mandate — Mandatory Know Your Customer norms and geo-fencing to prevent access from prohibited jurisdictions.
  • Precedent — Builds on the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.

Quick Revision Box

Term

Detail

PROG Act

Prohibition of Realty-based Online Gaming Act, 2025

Regulatory Body

SRO under MeitY

Market Size (2022)

$2.6 billion

GST Rate

28% on Gross Gaming Revenue

Constitutional Entry

Entry 34, List II (State List)

Skill vs Chance

Skill permissible, chance-based prohibited


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