The Indian government has formally constituted the Online Gaming Authority of India and notified a comprehensive regulatory framework to govern the fast-growing online gaming sector, with a clear prohibition on online money games and stricter safeguards for users. Online money games are explicitly prohibited under the Promotion and Regulation of Online Gaming Act, 2025.
The move coincides with the notification of the Promotion and Regulation of Online Gaming Rules, 2026, which will come into force from 1st May. The Rules lay down the operational framework for classifying, regulating and enforcing norms across online gaming platforms.
S Krishnan, secretary of MeitY, says the authority is central to implementing the legislation. “The Online Gaming Act was enacted in our Parliament last year. Pursuant to this Act, an authority was required to be constituted for the purpose of implementing the legislation and overseeing the various actions mandated thereunder,” he told reporters.
He added that the Rules provide clarity on the authority's structure and functioning, as well as on the classification process for online games.
The newly-constituted authority will function as a digital-first regulator and serve as the central body responsible for determining the nature of online games, maintaining a registry, handling complaints, and coordinating enforcement with financial institutions and law enforcement agencies.
According to the government, the authority will classify games into three categories—online money games, online social games and e-sports—based on defined criteria, including the presence of stakes, the expectation of monetary gain and monetisation mechanisms.
The Rules introduce a structured determination process that can be triggered either suo motu by the authority, through applications from gaming service providers, or by government notification.
Authorities will assess factors such as user payments, prize structures, revenue models and the extent to which in-game assets can be converted into real-world monetary value.
The determination process is expected to be completed within 90 days.
Mr Krishnan emphasised that the classification is dynamic and subject to review. “Provisions have been made to address instances where the conditions of registration are violated—for example, if a game initially classified as an ‘Online Social Game’ subsequently transforms into an ‘Online Money Game’,” he said, adding that such cases could lead to suspension or cancellation of registration.
The Rules introduce a statutory registration regime for e-sports and certain categories of online social games, depending on risk factors such as scale, financial exposure and user vulnerability.
Once approved, gaming platforms will receive a digital certificate of registration valid for up to ten years. They will also be required to display registration details prominently, maintain data records and comply with regulatory directions.
Importantly, games classified as online money games will not be eligible for registration or recognition under the National Sports Governance framework.
A major component of the Rules is the introduction of mandatory user safety features. Platforms must implement safeguards such as age verification, time limits, parental controls, user reporting systems and counselling support mechanisms.
Gaming service-providers are also required to establish internal grievance redressal systems. Users dissatisfied with platform-level resolutions can escalate complaints to the authority and, subsequently to the MeitY secretary as part of a two-tier appellate mechanism.
Each stage of grievance handling is expected to be completed within about 30 days.
The Rules also place obligations on banks and financial institutions to prevent transactions linked to illegal gaming activities.
Mr Krishnan says, “Regarding banks and financial institutions: these entities are required to verify the legality of a game before authorising any financial transactions associated with it.”
This provision is aimed at cutting off financial flows to prohibited platforms and strengthening enforcement.
The authority has been empowered to impose civil penalties for non-compliance, with proceedings to be conducted largely in digital mode. Cases are expected to be resolved within about 90 days.
Penalties will be proportionate, taking into account factors such as user harm, financial gain from violations, and repeat offences.
The government says the Rules seek to balance innovation with user protection, positioning India as a global hub for gaming while addressing concerns around addiction, financial fraud and misleading practices.
The framework is designed to protect children and vulnerable users, ensure regulatory certainty for the industry, and enable coordinated enforcement across agencies, it added.
