Regulations Set by India for Online Game Classification and Supervision

A regulatory regime has been formulated for the Indian online gaming sector, with the rules coming into force on 1 May 2025, along with the Promotion and Regulation of Online Gaming Act 2025. The formulation includes a central regulatory body and lays down provisions for the classification and regulation of various online games.

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New Regulatory Structure

The Regulation of Online Gambling Rules 2026 came into force on 1 May 2026, following publication on 22 April. Together with the PROG Act 2025, the rules establish a formal system for separating online money games from e-sports and social games.

It comes after almost one year of banning real-money gambling online activities in India through the Promotion and Regulation of Online Gaming Bill of 2025. The latest framework is meant to provide legal definitions, registration rules and enforcement mechanisms for the sector.

Under the new system, games will be assessed through an objective and time-bound test. The rules define online money games as those in which users pay fees or stakes with a reasonable expectation of monetary gains, and these will be prohibited. Permissible social games and e-sports will be allowed under the law, subject to designated safeguards.

Classification Rules

The Online Gaming Authority will be able to initiate licences and allowances under the framework. In deciding how a game should be classified, the regulator will consider factors including the nature of fees or stakes, the expectation of monetary winnings, the game’s revenue model, and how rewards or in-game assets can be monetised outside the game environment.

Decisions on classification must be made within 90 days of a complete application or notice. That timeline is intended to give the sector a clearer process for determining which products can operate under the law.

The framework arrives after a period of stronger pressure on India’s gambling sector. India banned real-money iGaming in August 2025 after estimates suggested that a third of the population had lost $2.3 billion a year on wagers. The bill criminalised online play and its advertisement, with penalties including fines and up to 5 years in prison.

Role Of OGAI

A central feature of the new system is the Online Gaming Authority of India, or OGAI. It will function as an attached office of the Ministry of Electronics and Information Technology and be based in the National Capital Territory of Delhi.

The authority will be a compact, multi-departmental body chaired by the Additional Secretary of MeitY, with Joint Secretary-level representatives from other ministries. Its responsibilities include maintaining an official list of online money games considered harmful because of financial and social risks, issuing directives, handling inquiries, and setting codes of practice.

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OGAI will also hear user appeals against platform grievance decisions and coordinate with financial regulators. The new structure is designed to give the government a central point for oversight across the online gaming industry.

Registration And Safety

Only games or categories notified by the central government will need to register under the framework, including those assessed on risk to users, especially minors, scale, financial transactions, and origin. All games seeking recognition as e-sports will also require registration.

Registered providers will receive a digital Certificate of Registration valid for up to 10 years. Online money game shall not be allowed any e-sports status recognition according to the National Sports Governance Act of 2025.

There will be mandatory requirements to have certain security provisions, such as age verification and usage time restrictions, parental control mechanisms, reporting systems within the application, counseling, and other systems to maintain fairness in play. These security provisions, as well as the grievance redressal mechanism, should be disclosed when making the registration process.

Enforcement Framework

A 2-tier grievance system is also part of the new regime. Users unhappy with a platform response will first have 30 days to appeal to the operator, then may go to the Online Gaming Authority, which will aim to resolve the matter within another 30 days. A further appeal can be made to the Secretary of MeitY, acting as Appellate Authority, with a target resolution time of 30 days.

Cases will be managed digitally, with a target period of 90 days for resolution following a complaint. Penalties will depend on factors like profit gained from violations, impact on users, recurrences, severity, and the steps taken to mitigate these problems.

The Act also aims to prevent regulated financial institutions and payment systems from processing any transaction connected with illegal online gaming activities. This would require close cooperation between OGAI and financial regulatory authorities, apart from impacting in-app payments, tokenization techniques, and cashing out facilities.

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Source: iGaming Business