The PROGA 2025 (Promotion and Regulation of Online Gaming Act 2025) defines an online money game as
“online money game” means an online game, irrespective of whether such game is based on skill, chance, or both, played by a user by paying fees, depositing money or other stakes in expectation of winning which entails monetary and other enrichment in return of money or other stakes; but shall not include any e-sports;
“other stakes” means anything recognised as equivalent or convertible to money and includes credits, coins, token or objects or any other similar thing, by whatever name called and whether it is real or virtual, which is purchased by paying money directly or by indirect means or as part of, or in relation to, an online game;
(c) “e-sport” means an online game which––
(i) is played as part of multi-sports events;
(ii) involves organised competitive events between individuals or teams, conducted in multiplayer formats governed by predefined rules;
(iii) is duly recognised under the National Sports Governance Act, 2025, and registered with the Authority or agency under section 3;
(iv) has outcome determined solely by factors such as physical dexterity, mental agility, strategic thinking or other similar skills of users as players;
(v) may include payment of registration or participation fees solely for the purpose of entering the competition or covering administrative costs and may include performance-based prize money by the player; and
(vi)shall not involve the placing of bets, wagers or any other stakes by any person, whether or not such person is a participant, including any winning out of such bets, wagers or any other stakes;
From the above, the definition of Real Money Games (RMG) excludes e-Sports which requires “Due Recognition under National Sports Governance Act” or is considered a Social Game defined in the Act as
“online social game” means an online game which—
(i) does not involve staking of money or other stakes or participation with the expectation of winning by way of monetary gain in return of money or other stakes;
(ii) may allow access through payment of a subscription fee or one-time access fee, provided that such payment is not in the nature of a stake or wager;
(iii) is offered solely for entertainment, recreation or skill-development purposes; and
(iv) is not an online money game or e-sport
The Act clearly prohibits use of “Tokens” or “Cryptos” as a substitute for money. The critical distinction is whether the “Tokens” can be purchased out of money or left over tokens in the account can be re-converted into money.
In the light of this development we need to take a re-look at Private Cryptos like “Bitcoin”.
Can we consider that the “Bitcoin” is a a myth created by the community and the entire Bitcoin eco system is nothing but a “Game” where some players generate Bitcoins by mining and others play the game of trading in Bitcoins for realmoney.
I am sure that this would be an uncomfortable question given the fact that powerful leaders of the world like Donald Trump are themselves Crypto players.
However, I invite a debate on this concept whether we can consider Private Crypto s as a Real Money Game and trading of this fictitious virtual asset an Online Game under PROGA-2025!
Naavi
