India’s Government releases a framework outlining classification and regulation of various online games

(AsiaGameHub) –   The Government of India has finalized a regulatory structure to supervise the nation’s online gaming industry.

These regulations were rolled out less than a year after the country outlawed real-money online gambling through the 2025 Promotion and Regulation of Online Gaming Bill.

The framework has set up a central regulatory body and detailed rules intended to govern and distinguish between online money games, esports, and social games. 

The Promotion and Regulation of Online Gaming (PROG) Act 2025, paired with the supporting Promotion and Regulation of Online Gaming Rules 2026, took effect on 1 May 2026 following its first public release on 22 April 2026.

Legal definitions

The new rules lay out an unbiased, time-limited assessment process to categorize games into one of two groups:

• Online money games: games in which users pay fees or place stakes while having a reasonable expectation of earning monetary returns, which will be banned;
• Permissible social games or e-sports: games permitted under the legislation that come with specified protective measures.

The Online Gaming Authority will be responsible for issuing licenses and approvals. The criteria the regulator will take into account include the type of fees or stakes involved and users’ expectation of financial winnings. It will also evaluate the game’s revenue structure, as well as how rewards or in-game assets can be converted to cash outside of the game ecosystem.

Classification rulings will be issued within 90 days of a fully completed application or notification being submitted.

This centralized framework is being rolled out at a time when India’s wider gambling industry has been under growing regulatory and political scrutiny.

India prohibited real-money iGaming in August 2025, after data indicated that one third of the country’s population was losing a combined $2.3 billion annually on bets. The bill made both participation in such online games and their advertisement criminal offenses, carrying punishments including fines and prison sentences of up to five years.

While India’s Minister of Technology Ashwini Vaishnaw noted that the bill “stops a major ill that was seeping into society”, opponents argued that the legislation would only push bettors to use unregulated overseas platforms.

Over the first 90 days after the ban was implemented, real-money gaming (RMG) platforms reportedly posted asset write-downs exceeding $840 million.

Establishment of OGAI

A core component of the new framework is the formation of the Online Gaming Authority of India (OGAI), which will function as a subordinate office under the Ministry of Electronics and Information Technology (MeitY). 

Based in the National Capital Territory of Delhi, the Authority will be a small, cross-departmental body. It will be chaired by the Additional Secretary of MeitY, with support from Joint Secretary-level delegates from other government ministries.

The Authority will keep an official register of online money games, which are classified as harmful due to their associated financial and social risks. Its remit will include conducting investigations, issuing official guidance, and setting industry codes of practice.

It will also handle user appeals against grievance rulings made by platforms, and coordinate with various financial regulatory agencies. 

Registration and user safety for esports

Only games or game categories flagged by the central government – assessed based on user risk (particularly for minors), scale, financial transaction volumes, and country of origin – are required to register under the new framework. Any games applying for official esports recognition will also need to complete registration.

Successfully registered providers will be issued a digital Registration Certificate that remains valid for a maximum of ten years. Notably, games categorized as online money games will not qualify for esports recognition under the National Sports Governance Act 2025.

The rules mandate that service providers put in place user protection measures such as age verification and access gating, usage time restrictions, and parental controls. Requirements also cover in-app reporting tools, counselling support services, and systems to guarantee fair play and operational integrity.

When submitting registration applications, platforms will be obligated to provide details of both these safety measures and their internal grievance resolution procedures.

Grievances and enforcement

A two-stage grievance resolution system has also been launched as part of the framework. First, users who are unhappy with a ruling can file an appeal with the relevant platform within 30 days of the grievance being addressed; if the issue is not resolved, users can escalate the matter to the Online Gaming Authority, which targets a 30-day turnaround for case resolution.

A subsequent appeal can be filed with the Secretary of MeitY, who acts as the Appellate Authority, with a target resolution window of 30 days.

Most investigations and enforcement proceedings will be carried out digitally, with the goal of closing all cases within 90 days of a complaint being filed.

Penalties will be tailored to be proportional, with assessments taking into account factors including profits earned from the violation, harm caused to users, whether the offense is repeated, its severity, and any steps taken by the entity to remedy the issue. The Authority has the power to issue civil penalties based on these assessments.

The Act aims to stop regulated financial institutions and payment networks from processing transactions connected to banned online money games.

This will require closer collaboration between the Online Gaming Authority and financial regulators, and could reshape the current structure of in-app purchases, token systems, and cash withdrawal mechanisms.

Once it is fully operational, the Authority is set to release the official list of banned online money games, and begin processing classification decisions and registration applications under the new regulatory system.