Authors: Mr. Rishi Anand (Partner) and Mr. Chirag Jain (Partner).
The Ministry of Electronics and Information Technology (MEITY), on April 22, 2026, notified the Promotion and Regulation of Online Gaming Rules, 2026 (Rules) under the Promotion and Regulation of Online Gaming Act, 2025 (Act). The Rules seek to establish a comprehensive regulatory framework governing online gaming in India, including classification, oversight, registration, user protection, and enforcement mechanisms. The Rules will come into force from May 1, 2026.
Set out below are the key highlights of the Rules:
- Establishment of Online Gaming Authority of India (Authority): The Rules establish a central regulatory body comprising representatives from MEITY, Ministry of Home Affairs, Ministry of Finance, Ministry of Information & Broadcasting, Ministry of Youth Affairs & Sports, and Ministry of Law & Justice. Specifically, the Chairperson is the Additional Secretary of MEITY (or an officer of equivalent or higher rank nominated by the MEITY Secretary), with Joint Secretary level representatives from the other ministries serving as ex officio members. The Authority will be an attached office of MEITY and is designed to function as a digital office, with proceedings conducted without requiring physical presence. The Authority will oversee classification, registration, grievance redressal, enforcement, and coordination with other regulators.
- Classification / Determination of Online Games: A key feature of the Rules is the provision for the Authority to “determine” the nature of online games particularly whether a game qualifies as an “online money game” or otherwise. This determination is based on factors such as entry fees, staking mechanisms, expectation of winnings, and revenue models. Importantly, determination is not universally mandatory. An online game is required to be determined only in three specific circumstances: (a) where the Authority initiates determination suo motu after issuing notice to the service provider; (b) where the service provider intends to offer the game as an e-sport; or (c) where the Central Government, by notification, requires a category of online social games to be determined (having regard to the nature, volume or value of financial transactions involved). Service providers are not otherwise required to seek a determination from the Authority.
- Categorisation of Online Games: The Rules broadly recognise the following categories of online games:
- Online money games (subject to stricter oversight);
- Online social games; and
- E-sports.
Importantly, online money games are not eligible for recognition as e-sports under the framework (whether under these Rules or the National Sports Governance Act, 2025).
4. Mandatory Registration Framework: Registration with the Authority is required in two circumstances: (a) where the Central Government, by notification, requires an online game or category of games to be registered (having regard to factors such as risk of harm to users including children, scale of user participation, financial exposure, and country of origin of the service provider); and (b) where the game is intended to be offered as an e-sport. Additionally, during a determination proceeding initiated upon an application by a service provider, the Authority may itself determine that registration is required based on the same statutory factors and not only when the Central Government has issued a notification to that effect. Registration is game specific, with each game of each service provider requiring a separate registration. Certificates of Registration are valid for a period of up to 10 years as stated by the applicant at the time of application, subject to continued compliance and eligibility.
5. User Safety and Responsible Gaming Measures: The Rules introduce the concept of “user safety features”, mandating safeguards such as age verification, parental controls, time limits, grievance mechanisms, and fair play monitoring tools. These are aimed at mitigating financial, psychological, and social risks associated with online gaming.
6. Financial Transaction Controls: Financial intermediaries (including banks and payment facilitators) are required to verify the registration status of e-sports and online social games before enabling related financial transactions, with the specific verification protocol to be prescribed by the Authority through directions or guidelines under Section 8(3) of the Act. For games determined to be online money games, the Authority may separately direct banks and financial institutions to suspend, restrict, or block financial transactions associated with such games. It should be noted that the verification obligation in relation to registration status applies specifically to e-sports and online social games, and not to all online games broadly.
7. Grievance Redressal Mechanism: Online gaming service providers are required to establish internal grievance redressal systems. Users may escalate complaints to the Authority (within 30 days of the service provider’s decision or inaction) if unsatisfied, with the Authority required to dispose of such appeals preferably within 30 days. Further appeal is available to the Appellate Authority, which is the Secretary to the Government of India in MEITY, also within 30 days of the Authority’s order.
8. Compliance, Enforcement and Penalties: The Rules prescribe a structured enforcement mechanism, including investigations, hearings, and imposition of penalties for non-compliance. The Authority is empowered to suspend or cancel registrations, impose penalties (which are to be credited to the Consolidated Fund of India), and prohibit the offering of non-compliant games. In assessing penalties, the Authority must consider factors such as the quantum of unlawful gain, harm to users, recidivism, severity of breach, and any remedial steps taken by the service provider.
9. Data Retention and Transparency Obligations: Service providers offering online social games and e-sports are required to retain traffic data, metadata, and other related information on computer resources located in India, for such period and in such manner as may be prescribed by the Authority through directions or guidelines. Periodic compliance reporting and transparency obligations will also be specified by the Authority.
Overall, the Rules mark a significant shift towards a registration based and risk sensitive regulatory regime for online gaming in India, with a clear emphasis on user protection, financial oversight, and accountability of gaming platforms