The government recently notified rules to regulate the digital gaming ecosystem under the Promotion and Regulation of Online Gaming (PROG) Act, 2025. The law adopts a largely light-touch approach, particularly for non-real-money games, while completely banning real-money games. Not all online games require determination, but e-sports must be registered. The law provides for the creation of a regulatory body — the Online Gaming Authority of India — and brings banks and payment systems within the regulatory framework. If the Authority identifies a game as a money game, banks and financial institutions must act immediately. They may be directed to stop, restrict, or suspend transactions related to that game and must also share information with the Authority if required.
“We wanted to keep this entire framework as light-touch regulation as possible. Most games that are not real-money games should be able to operate without any obligation to be determined or registered,” said S Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY).
Regulatory body for online gaming
The rules create a central regulatory body — the Online Gaming Authority of India — under MeitY to oversee the sector. Its primary role is to decide whether a game involves real money or qualifies as a “money game”. It will also determine whether certain games need to be registered, handle user complaints, and issue guidelines for the industry. In addition, the Authority will work closely with banks and law enforcement agencies to ensure compliance. In simple terms, it acts as a regulator to ensure fair play and protect users.
According to the notification, the Authority will be headed by a Chairperson — an Additional Secretary from MeitY or an officer of equivalent rank — and will include members from key ministries such as Home Affairs, Finance, Information and Broadcasting, Youth Affairs and Sports, and Law and Justice. This multi-ministry structure ensures that issues related to security, finance, and law are properly addressed. The Authority’s head office will be located in Delhi, and it will function as an attached office of MeitY.
The Authority can investigate complaints related to online games and issue directions or orders to gaming companies, advertisers, and payment service providers. It can also frame rules and guidelines covering registration, grievance redressal, user verification, payments, data retention, cyber security, fair play standards, and user safety. It may also require companies to ensure transparency, submit reports, and verify their registration status. Overall, the Authority has wide powers to regulate the online gaming industry.
Determination, registration of online games
Under the Online Gaming Rules, 2026, not every online game needs to be immediately examined or registered. A game is not required to be “determined” (i.e., examined by the Authority) unless certain conditions apply.
First, the government or the Authority may step in if it identifies potential risks. Second, if a gaming company wants to classify its game as an e-sport, it must approach the Authority for determination. Third, if the government notifies a category of games — especially those involving significant financial transactions — such games must be reviewed.
To assess whether a game is risky, the rules lay down clear criteria. The Authority will examine whether the game involves payment of money at any stage, such as entry fees, deposits, or stakes. It will also assess whether users expect to win money or rewards of financial value in return. If users are putting in money with the expectation of earning more, the game may be considered risky. The Authority will also look at how payments are structured. If the fee is merely for participation in a competitive event (such as a tournament with fixed rules and prize money), it may be treated differently. Similarly, subscription-based or one-time access fees are generally seen as lower risk. However, if the payment resembles betting or wagering — where users stake money with uncertain outcomes — the game is more likely to be classified as a money game and face stricter regulation.
If, after determination, a game is classified as a money game, the Authority can take action, including directing banks to stop related transactions. If it is not classified as a money game, it can continue to operate normally. The determination remains valid as long as the game does not undergo material changes. If new money-related features are introduced, the Authority may re-examine the game.
Some games may also require registration. This includes cases where the government mandates it, where the game is an e-sport, or where the Authority believes the game poses risks — for example, due to financial involvement or a large user base. Each game must be registered separately. Importantly, a game classified as a money game cannot be recognised or registered as an e-sport. Once registered, a game receives a Certificate of Registration valid for up to 10 years, although it may be suspended or cancelled if conditions change.
Duties of online gaming service providers
Gaming companies must clearly inform users about the legal status of their games and comply with rules related to payments and user protection. They must prominently display on their websites or apps whether a game has been determined or registered by the Authority.
Banks and payment systems are also brought under the regulatory framework. If a game is identified as a money game, financial institutions must act promptly to stop or restrict transactions and share relevant information with the Authority. This ensures that illegal or risky games cannot operate through digital payments.
To protect users, every platform must establish a grievance redressal mechanism. Users can first file complaints with the platform, and if the issue is not resolved, they may approach the Authority within 30 days. The Authority can review the matter and order corrective action. Further appeals can also be made. Additionally, gaming companies must appoint a publicly accessible point of contact and comply with data storage requirements, ensuring that user and game-related data is securely stored within India.
Penalty framework
The rules lay down a clear process for imposing penalties. The Authority can initiate action based on complaints or on its own (suo motu). It can issue a notice, conduct hearings — primarily in digital mode — and aim to resolve cases within 90 days.
If a violation is established, the Authority may impose penalties, suspend or cancel registration, or even prohibit the game. While determining penalties, it will consider factors such as unfair gains, user harm, repeat violations, and the overall impact. Any penalties collected will be credited to the Consolidated Fund of India.