India Defines Online Game Regulations, Launches New Authority

The Government of India has established a broad framework for regulating the online gaming sector, a move finalized as of May 1, 2026. This comes on the heels of the 2025 Promotion and Regulation of Online Gaming Bill, which banned real-money gambling. The new rules, part of the 2025 PROG Act, introduce a central regulatory authority and specific guidelines to classify games into categories like online money games, e-sports, and social games.

New Classification System

The fresh regulations clearly distinguish between online money games and permissible games. Online money games involve fees or stakes and the expectation of financial gain—now officially prohibited. In contrast, e-sports and social games that are deemed safe are permitted, subject to specific safeguards. According to the Online Gaming Authority, factors like revenue model and monetization of rewards influence classification. Decisions are planned within 90 days of application submissions—a relatively quick turnaround given the complexity involved. The regulatory push addresses mounting political concerns over gambling. Last year, India banned real-money iGaming after data suggested that nearly a third of its population was losing $2.3 billion annually on bets. But despite government assurances that the law would curb societal harm, critics warn it might drive users to unregulated offshore sites. Indeed, within 90 days of the ban, real-money gaming platforms reported asset write-offs exceeding $840 million.

Formation of the Online Gaming Authority

A cornerstone of the new framework is the establishment of the Online Gaming Authority of India (OGAI), functioning under the Ministry of Electronics and Information Technology. Located in Delhi, OGAI is designed as a multi-departmental body. Notably, it includes representatives from various ministries and is led by the Additional Secretary of MeitY. And this authority maintains an official registry of games deemed financially and socially risky. It will handle inquiries, issue guidelines, and coordinate with financial watchdogs, ensuring a broad regulatory sweep across the sector.

Esports & User Safety Requirements

Games notified by the central government—especially those involving financial transactions—must now register with OGAI. The same applies to games seeking e-sports recognition under the National Sports Governance Act 2025. Failure to register means disqualification for official e-sports status. But users’ welfare is at the core, with requirements for age verification, time limits, and parental controls. Platforms must also provide in-app support and report on these measures during registration. Grievance processes, critical for regulatory compliance, must be fully disclosed by providers. A two-level grievance mechanism allows users to initially appeal to the platform, followed by an option to approach OGAI if not resolved. The focus remains on digital channels, aiming to resolve cases within 90 days, underscoring the urgency in safeguarding user interest.

Financial Controls and Future Outlook

The Act restricts financial institutions from enabling transactions linked to prohibited games, requiring tighter collaboration between OGAI and financial regulators. This potentially reshapes the in-app purchase market, affecting how game tokens and cash-out mechanisms operate. Industry insiders predict these changes will trigger further adjustments in business models, as operators align with the new rules. The first list of banned games is anticipated soon, providing clarity to operators and users alike. The Online Gaming Authority plans to begin detailed assessments and registration processes once fully operational.