The online gaming sector may face higher compliance costs if the draft Promotion and Regulation of Online Gaming Rules, 2025, released for consultation by the ministry of electronics and IT on Thursday, gets finalised on the same lines.

Rising compliance & regulatory burden on gaming startups

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 c

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