The Government of India has finalised a regulatory framework to oversee the country’s online gaming sector.
The regulation comes less than year after the country banned real-money online gambling via the 2025 Promotion and Regulation of Online Gaming Bill.
It has established a central regulator and detailed rules designed to govern and seperate online money games, e-sports, and social games.
The Promotion and Regulation of Online Gaming (PROG) Act 2025, along with the accompanying Promotion and Regulation of Online Gaming Rules 2026 came into force on 1 May 2026 after its initial publication on 22 April 2026.
Legal definitions
The new Rules provide an objective and time-bound test to classify games as either:
- Online money games: games where users pay fees or stakes with a reasonable expectation of monetary gains, which will be prohibited;
- Permissible social games or e-sports: games allowed under the law with designated safeguards.
Licences and allowances may be initiated by the Online Gaming Authority. The factors the regulator will consider include the nature of fees or stakes and expectation of monetary winnings. It will also consider the game’s revenue model, and how rewards or in‑game assets can be monetised outside the game environment.
Decisions on classification will be made within 90 days of a complete application or notice.
The introduction of a centralised framework comes as India’s broader gambling sector has faced increasing regulatory and political pressure.
India banned real-money iGaming in August 2025 after data estimated that a third of the population had lost $2.3 billion a year on wagers. The bill criminalised online play as well as its advertisement with penalties including fines and penalties of up to five years.
Although India Technology Minister Ashwini Vaishnaw stated that the bill “avoids a big evil that is creeping into society”, critics countered that the law would simply send punters to unregulated offshore sites
Within the first 90 days, RMG platforms had reportedly recorded asset write-downs of more than $840 million.
Establishment of OGAI
A key feature of the new framework has been the creation of the Online Gaming Authority of India (OGAI), which will operate as an attached office of the Ministry of Electronics and Information Technology (MeitY).
Headquartered in the National Capital Territory of Delhi, the Authority will be a compact, multi-departmental body. Its chair will be the Additional Secretary of MeitY, supported by Joint Secretary-level representatives from other ministries.
The Authority will maintain an official list of online money games, deemed harmful due to financial and social risks. It will be responsible for inquiries, issuing directives and establishing codes of practice.
It will also be responsible for hearing user appeals against platform grievance decisions, and coordinating with financial regulators agencies.
Registration and user safety for esports
Only games or categories notified by the central government, considering risk to users (especially minors), scale, financial transactions, and origin, must register under the new framework. All games that seek recognition as esports will also require registration.
Registered providers will receive a digital Certificate of Registration valid for up to ten years. Importantly, games identified as online money games will be ineligible for esport recognition under the National Sports Governance Act 2025.
The rules stipulate that service providers must implement user safety measures including age verification and gating, usage time limits and parental controls. It also includes in-app reporting and counselling support, and systems to ensure fair play and integrity.
Platforms will be required to disclose these safety measures and their internal grievance redressal processes when applying for registration.
Grievances and enforcement
A two-tier grievance system has also been introduced under the framework. Initially, dissatisfied users will be able to appeal to a platform within 30 days of grievance resolution; if unresolved, users may approach the Online Gaming Authority, which will aim to resolve cases within an additional 30 days.
A further appeal can be made to the Secretary of MeitY (Appellate Authority), with a target resolution time of 30 days.
Investigations and enforcement proceedings will be primarily digital, with a goal of completing cases within 90 days of a complaint being made.
Penalties will be designed to be proportionate, considering factors such as gains from violations, user harm, recurrence, severity, and remediation efforts. The Authority holds the power to impose civil penalties accordingly.
The Act has sought to prevent regulated financial institutions and payment systems from facilitating transactions linked to prohibited online money games.
This will demand closer coordination between the Online Gaming Authority and financial regulators and might alter the landscape of in-app purchases, token systems, and cash-out mechanisms.
The Authority is expected to publish the official list of prohibited online money games and commence determinations and registrations under the new regime once fully functional.
Kathryn Evans
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.
Original article: https://igamingbusiness.com/legal-compliance/regulation/india-publish-new-online-gaming-regulations/
