The Indian online gaming industry has welcomed the newly notified online gaming rules, saying it is a progressive step toward positioning India as a global hub for interactive entertainment and competitive video gaming.

The Ministry of Electronics and Information Technology (MeitY), through a Gazette notification on Wednesday, has notified the rules under the Promotion and Regulation of Online Gaming Act, introducing a “light-touch” approach where most online social games will not require mandatory registration or classification. The rules will come into force from May 1.

“The policy direction marks a decisive shift toward building a globally-aligned video gaming industry in India. For companies like ours that have always focused on interactive entertainment-led experiences, this creates a strong foundation for sustainable growth. Treating casual gaming as entertainment not only unlocks wider audience participation but also accelerates the formal recognition of video gaming as a mainstream storytelling, cultural platform,” Rajan Navani, Chairman, Jetsynthesys, and President, Indian Digital Gaming Society, told businessline.

The industry believed this will drive long-term investment, innovation and global competitiveness for Indian video gaming companies, he said.

“Further, it is important for all stakeholders to ensure that the framework for Esports remains enabling so that the ecosystem, from grassroots players to professional leagues, can scale efficiently,” he added.

More clarity

Similarly, Sagar Nair, Head of Incubation, LVL Zero Incubator (a 100-day sprint designed to accelerate early-stage gaming start-ups across India), said that clarity in regulation is one of the most critical enablers for innovation, and this framework helps remove long-standing ambiguity that founders have had to navigate.

“By clearly distinguishing Esports and non-money gaming from online money gaming, the Act creates a more predictable environment for builders to focus on creating high-quality gaming experiences, scalable IPs and globally-relevant products. For emerging start-ups, this is an opportunity to align with a more structured ecosystem, one that encourages creativity, responsible design and long-term value creation,” Nair said.

Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, said that the introduction of a 90-day determination process strikes the right balance between regulatory scrutiny and certainty. For players, teams, tournament operators, broadcasters, sponsors and other ecosystem participants, this creates a clear signal — once registered, an Esport is unequivocally recognised as a legitimate sporting discipline, he said.

“The explicit exclusion of online money games from being classified as Esports is another critical step. It removes ambiguity and reinforces that competitive gaming is a skill-driven pursuit independent of any wagering or monetary constructs,” he said.

Gaps still exist

However, Animesh Agarwal, Co-founder and CEO, S8UL, that there are still important gaps that need to be addressed.

“Esports teams and players continue to face a lack of clarity on financial frameworks, with ongoing challenges in how banks differentiate between Esports earnings and real money gaming. There is also no clear pathway today to formally register Esports teams as entities within a defined structure. Addressing these areas will be critical for the ecosystem to move from early structure to full legitimacy and long-term sustainability,” he said.

Published on April 23, 2026