Centre open to Online Gaming Act amendments: IT Minister Ashwini Vaishnaw to stakeholders

Creative agencies working with gaming clients finally have reasons to breathe easier. Union Electronics and Information Technology Minister Ashwini Vaishnaw assured stakeholders on Monday that the government will consider amendments to the Promotion and Regulation of Online Gaming Act, 2025 (PROGA) if clarity issues persist.

The minister's assurance comes as a lifeline for the advertising community that has been walking on eggshells, with brand managers struggling to understand which gaming formats fall under permitted categories for their campaigns.

Agencies Navigate Regulatory Grey Areas

The current law's three-tier classification system (banned online money games, skill-based games, and esports) has created a creative brief nightmare for agencies. Many gaming formats don't fit neatly into these prescribed categories, leaving indie studios and community-driven gaming platforms in regulatory limbo.

This confusion has been particularly acute for creative directors developing campaigns, who find themselves second-guessing concepts and worrying that innovative gaming formats might accidentally cross regulatory red lines. The uncertainty has forced many agencies to adopt a wait-and-watch approach, putting several gaming brand campaigns on hold until clearer guidelines emerge.

Creative agencies have been particularly vocal about the need for regulatory clarity that doesn't transform into red tape, as excessive compliance requirements could make smaller gaming clients unviable for creative partnerships.

Payment Gateway Complications Hit Campaign Execution
The parallel meetings with payment firms, including Razorpay, PhonePe, and Stripe, highlight another major pain point for the creative industry. Campaign execution for gaming brands has become increasingly complex as payment channels struggle to distinguish between permissible and prohibited games.

Creative agencies have found their media buying strategies complicated by these payment gateway uncertainties, with digital campaigns facing unexpected roadblocks when processors take a safer course of action. The RBI Deputy Governor's involvement in the parallel meetings with banks and payment firms on Friday suggests clearer operational guidelines are forthcoming.

Legal Challenge Adds Uncertainty

Head Digital Works, parent company of the RMG platform A23, has challenged PROGA's constitutionality in the Karnataka High Court, with the Centre directed to respond by September 8. Despite this legal scrutiny, Vaishnaw's commitment to making India a global esports leader while maintaining strict gambling boundaries provides clearer direction for creative strategies.

The promise of more consultation meetings before full implementation suggests the creative community's concerns about workable brand safety guidelines may finally find a receptive audience in policymaking circles.