India Releases Online Game Classification and Regulation Framework

(AsiaGameHub) –   India has implemented its new framework for online gaming, providing regulators with a more defined system to distinguish between prohibited money games and permissible esports and social games.

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Key Takeaways

• The Promotion and Regulation of Online Gaming Rules 2026 became effective on May 1.
• The Online Gaming Authority of India is tasked with classifying games within a 90-day period.
• Online money games continue to be forbidden, while eligible esports and social games can operate under specific protective measures.

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New Regulations Differentiate Money Games from Esports

India has transitioned from a broad prohibition on real-money gaming to a more detailed regulatory approach. The PROG Act 2025 and the Promotion and Regulation of Online Gaming Rules 2026, which were published on April 22, came into effect on May 1.

This new framework establishes the Online Gaming Authority of India (OGAI), which will function as an attached office under the Ministry of Electronics and Information Technology. Based in Delhi, OGAI will comprise leadership from MeitY and representatives at the Joint Secretary level from various other ministries.

OGAI will be responsible for determining whether games qualify as prohibited online money games or permitted social games and esports. The assessment criteria include fees, stakes, the likelihood of monetary gain, revenue models, rewards, in-game assets, and the potential for items to be monetized outside the game. Decisions are expected within 90 days of a complete application or notice.

Online money games are defined as those where users pay a fee or stake with a reasonable expectation of financial gain, and these remain banned. OGAI will also maintain an official registry of games deemed harmful due to financial and social risks.

This framework follows the August 2025 ban on real-money iGaming, which was enacted after estimates indicated that approximately one-third of the population had lost $2.3 billion annually on wagers. India’s Technology Minister, Ashwini Vaishnaw, stated that the law “avoids a big evil that is creeping into society,” while critics expressed concerns that players might turn to offshore platforms. Within 90 days of the ban, RMG platforms had reportedly recorded over $840 million in asset write-downs.

Registration is now a crucial requirement for recognized esports and certain designated game categories. Providers can obtain a digital Certificate of Registration, valid for up to 10 years. However, any game identified as an online money game will not be eligible for esports recognition under the National Sports Governance Act 2025.

Operators are also mandated to implement user protection measures. These rules encompass age verification, access limitations, usage time restrictions, parental controls, in-app reporting mechanisms, counseling support, fair play systems, and integrity controls. Platforms must clearly outline these safeguards and grievance redressal systems during the application process.

User complaints will be addressed through a phased procedure. Initially, users can escalate their grievances to the platform within 30 days of a decision. If the issue remains unresolved, they can then approach OGAI, which aims to resolve such matters within another 30-day period. A final appeal can be made to the Secretary of MeitY, also with a 30-day target for resolution.

Enforcement actions will primarily be conducted online, with investigations expected to be completed within 90 days of a complaint being filed. Penalties will be determined based on factors such as the gains derived from violations, the harm caused to users, the frequency of the conduct, its severity, and any efforts made towards correction.

The regulations also extend to payment and financial systems. Regulated financial institutions and payment systems are required to refrain from facilitating transactions associated with prohibited online money games, which could impact in-app purchases, token models, and cash-out systems across the market.