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Business News India: Latest Business News Today, Share Market, Economy

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BT Explainer: What are the new online gaming rules and wh...
2026-04-23 · via Business News India: Latest Business News Today, Share Market, Economy

The government has notified the Promotion and Regulation of Online Gaming Rules, 2026, bringing into force the operational framework of the Promotion and Regulation of Online Gaming (PROG) Act, 2025 from May 1.

The law was passed in August 2025 to tackle the risks associated with online money gaming while also creating a structured environment for e-sports and online social games. The goal of the rules is to position India as a global hub for gaming and innovation, while protecting users from financial loss, addiction risks and misleading “quick money” promises.

What do the Online Gaming Rules actually do?

The Rules lay down how the law will work in practice. It creates a formal system to classify online games, regulate certain categories and define the obligations of gaming platforms.

They also introduce a digital-first regulator, mandate user safety features and establish a grievance redressal and appeals process.

Must read: Online gaming rules notified: Govt opts for minimal compliance, selective oversight

How will games be classified?

At the core of the framework is a “determination test” that decides whether a game is an online money game or a permissible social game or e-sport.

This process can be triggered in three ways, by the regulator on its own, through an application by a gaming company, or when the government asks for a specific category to be examined.

The classification will depend on factors such as whether users pay to play, the expectation of monetary winnings, the platform’s revenue model and whether in-game rewards can be converted into real-world value. The regulator is expected to complete this process within 90 days.

Who is the regulator?

The Rules set up the Online Gaming Authority of India as a central, digital-first regulator under the Ministry of Electronics and Information Technology (MeitY).

The Authority will include representatives from multiple ministries, including home affairs, finance, information and broadcasting, sports, and law.

Must read: Online Gaming Rules bring clarity, boost esports credibility but gaps remain, say industry stakeholders

It will be responsible for maintaining a list of online money games, handling complaints, issuing directions, and coordinating with banks, payment systems and law enforcement agencies.

Will all games need registration?

No. Registration is not mandatory for all games. It will be required only for categories notified by the government, based on factors such as user risk, scale and financial transactions, and for all games seeking recognition as e-sports.

Once approved, platforms will receive a digital certificate valid for up to 10 years. Importantly, games classified as online money games cannot be recognised as e-sports.

What rules do platforms have to follow?

Platforms that are registered or seek classification will have to comply with a range of obligations. These include clearly displaying their registration or classification status, appointing a point of contact, complying with data retention norms and following directions related to payments.

They must also disclose their safety measures and grievance systems upfront.

Must read: Real-money gaming ban backfires? 1 in 3 RMG users shift to offshore betting sites

What user safety measures are required?

The Rules introduce mandatory “user safety features” based on each game's risk profile. These include age verification and age-gating, time limits, parental controls, reporting tools, counselling support and systems to ensure fair play.

The idea is to reduce addiction risks and protect vulnerable users, especially children.

How can users file complaints?

The framework introduces a two-tier grievance redressal system. Users must first approach the gaming platform. If they are not satisfied with the response, they can escalate the complaint to the Online Gaming Authority within 30 days.

A further appeal can be made to the MeitY Secretary, who acts as the Appellate Authority. Each stage is expected to be resolved within 30 days.

What happens in case of violations?

The Rules provide penalties for non-compliance. Proceedings will largely be conducted digitally and are expected to be completed within 90 days. Penalties will depend on factors such as the severity of the violation, gains made from non-compliance, harm caused to users and whether the issue is repeated.