OGAI Orders App Stores and Banks to Drop India Real-Money Games

⏱ 3 min read

India's online gaming regulator has fired its first major enforcement salvo at the technology supply chain. On 29 July 2026, the Online Gaming Authority of India (OGAI) issued a formal advisory ordering app stores, OTT platforms, cloud providers, banks, internet service providers and advertising agencies to immediately halt any activity that enables real-money online gaming — or face criminal prosecution under the Promotion and Regulation of Online Gaming Act, 2025 (PROGA).

The move marks the first coordinated push by OGAI — operational since 1 May 2026 — beyond simply blocking websites. By targeting the platforms that host, distribute, fund and promote real-money games, the authority is attempting to cut off supply-side infrastructure rather than playing a perpetual game of URL whack-a-mole. At stake is a domestic market that offshore operators privately value at more than $20 billion, where an estimated 82% of users accessed foreign platforms even after the ban took effect.

---

What the Advisory Says

Signed by T. Santhosh, Secretary of OGAI, the 29 July advisory invokes three provisions of PROGA:

• Section 5 — prohibits any person from offering, aiding or abetting an online money game.
• Section 6 — bans advertisements that promote or induce users to play one.
• Section 7 — bars banks, financial institutions and any other party from authorising payments towards such games.

The advisory directs covered entities to review internal policies immediately, build "appropriate automated or manual internal compliance systems," and suspend any non-compliant activities — including disabling gaming applications, blocking hosting services, stopping fund authorisation and pulling related advertising.

---

Who Is in Scope

OGAI's advisory is addressed to "all persons whose operations, services or platforms may directly or indirectly involve the offering, aiding, advertisement, or financial enablement of online money games." In practice that sweeps in a broad set of intermediaries:

• Application stores (including global platforms distributing apps in India)
• OTT and streaming platforms carrying gaming advertisements
• Cloud infrastructure and hosting providers
• Telecom operators and internet service providers
• Banks, payment aggregators and financial institutions processing deposits
• Social media intermediaries and advertising agencies

The breadth is deliberate. Prior enforcement focused almost entirely on blocking destination URLs — a method that proved insufficient as users shifted to mirror domains and VPNs. This advisory attempts to dry up the distribution and payment rails instead.

---

Penalties at Stake

Non-compliance is not merely administrative. OGAI has stated that violations will be "viewed very seriously" and that information can be blocked under Section 14 of the Act. Criminal exposure under Section 5 runs to up to three years' imprisonment and a fine of up to ₹1 crore for a first offence, rising to three-to-five years and ₹1–2 crore for repeat violations.

Offence Category	Provision	Max Imprisonment	Maximum Fine
Offering / aiding a money game (first offence)	Section 5, PROGA	3 years	₹1 crore (~$120,000)
Offering / aiding a money game (repeat offence)	Section 5, PROGA	3–5 years	₹1–2 crore (~$240,000)
Advertising a money game	Section 6, PROGA	3 years	₹1 crore (~$120,000)
Facilitating payments for a money game	Section 7, PROGA	3 years	₹1 crore (~$120,000)

---

Enforcement Context

The advisory arrives against a backdrop of mounting evidence that URL-blocking has not stemmed offshore gambling activity. MeitY data tabled in the Lok Sabha on 1 April 2026 revealed that 8,376 URLs linked to betting and gambling had been blocked as of 28 March 2026 — more than 4,800 of those after PROGA came into force. Yet a December 2025 CUTS International survey found offshore platform usage among Delhi NCR residents climbed from 68.3% pre-ban to 82% post-ban, with daily sessions extending beyond two hours. Users continued to fund accounts via domestic UPI transfers and mainstream bank transfers, exploiting the absence of a merchant category block.

Separately, the Directorate General of GST Intelligence had already frozen approximately 2,000 bank accounts tied to offshore operators and provisionally attached ₹122 crore in assets in a parallel tax enforcement sweep targeting operators that bypassed the 28% GST levy upheld by the Supreme Court in May 2026.

---

Supreme Court Wildcard

The advisory's practical reach depends partly on how the Supreme Court resolves a pending constitutional challenge to PROGA. On 5 August 2026, a bench led by Chief Justice Surya Kant agreed to schedule a final hearing, with Solicitor General Tushar Mehta directed to ensure all pleadings are complete. Operators argue the blanket ban violates the fundamental right to trade, given that courts had historically protected skill-based games like rummy and poker. The Court's ruling in May 2026 — which declared every mobile device a "virtual gambling house" — signals limited judicial appetite for restoring operator rights, but the constitutional question remains open. Until the Court speaks, PROGA and OGAI's enforcement powers remain fully operative.

---

Sources

Primary sources consulted for this article, in order of citation.

All persons shall mandatorily build and implement appropriate automated or manual internal compliance systems, procedures, checks and safeguards suited to their business.

— T. Santhosh, Secretary, Online Gaming Authority of India · OGAI Advisory, 29 July 2026