The new Digital Personal Data Protection Rules will have a particularly pronounced impact on the Indian skill-based gaming industry, the Indian Governance and Policy Project (IGAP) told AGB.
In the beginning of this year, Indian authorities released the draft Digital Personal Data Protection (DPDP) Rules, 2025, which will enforce provisions of the Digital Personal Data Protection Act, 2023.
While the Act was passed over a year ago, the rules that will result in its enforcement have thus far been under development, and are only now being floated for public consultation.
The DPDP Act provides a legal framework for “data fiduciaries” — entities that collect personal data from “data principals” or users — in order to protect that data against misuse and penalize firms who violate data protection principles.
“This new legislation is set to establish a comprehensive privacy framework for India, marking a significant shift in how personal data is managed in the digital landscape”, the IGAP told AGB.
“This law is ushering in an entirely new privacy regime for India. The release of these draft rules by the Central Government for stakeholder suggestions is a positive step towards their effective implementation.”
According to the organization, similar to other digital sectors, the draft rules will have a significant impact on Indian gaming, once implemented, since compliance for data fiduciaries under this framework is notably more stringent than those under the earlier Information Technology Act, 2000.
The IGAP’s comments center on video games or money games which are predominantly skill-based.
In the Indian legal framework, a game is classified as a game of skill if it is predominantly determined by skill, whereas a game reliant largely on luck is considered a game of chance.
The Supreme Court of India (SC) has clarified the term “mere skill”, specifying that games in which success relies more on skill than on chance will not be classified as gambling, but will be recognized as games of skill.

As a result, the distinction between games of skill and games of chance is usually assessed on a case-by-case basis by the respective state, but with most Indian states permitting real money or stakes-based online gaming.
India’s gaming industry, including real money gaming (RMG) and casual gaming, is estimated to double its revenues in the next four years from its current base of Rs33,000 crore ($396 million), growing at a compounded annual growth rate (CAGR) of 14.5 percent between 2023 and 2028, according to a PwC India report.
Improved children privacy protections
According to the IGAP, the draft rules also imposes strict limitations on the behavioral tracking of children, aiming to enhance privacy protections.
Skill-based gaming companies would need to implement verifiable parental consent measures before they can process the personal data of minors, in order to protecting vulnerable users in the gambling space.
“Seamless and cost-effective age verification mechanisms are expected to play a key role in executing these compliances,” the spokesperson added, highlighting the need for innovative solutions in data management.
Furthermore, gambling companies will be required to adapt their data processing practices significantly.
“Processing will need to be limited to personal data that is essential while also providing users the rights to access, correct, or erase their data,” the IGAP representative explained.
The industry is also facing an interpretation dispute of GST applicability to online gaming. The government argues that a 28 percent GST should be levied on the total entry fee for contests, effectively taxing the entire prize pool.

In contrast, gaming companies assert that GST should apply only to their platform fees or commissions, noting that many games are skill-based rather than chance-driven.
The Supreme Court of India recently temporarily halted, last Friday, Goods and Services Tax (GST) show-cause notices amounting to Rs1.12 trillion ($13.5 billion) issued to online gaming companies.
This comes in response to multiple requests from gaming operators, including land-based gaming companies such as Delta Corp.