Government notified online gaming rules, to be effective from May 1

The government has notified the long-awaited rules to operationalise the Promotion and Regulation of Online Gaming Act, clearing the path for a digital-first regulator, the Online Gaming Authority and outlining a largely “light-touch” regulatory framework. Under this approach, most online social games will not require mandatory registration or prior classification.

The rules come into effect from May 1, 2026.

A key feature of the framework is the introduction of “user safety features” as an enabling provision. These include a range of safeguards—technical, procedural, operational, and behavioural—tailored to the risk profile of each game. Measures may include age verification and gating, time limits, parental controls, user reporting tools, counselling support, and fair-play monitoring. Service providers must disclose these features, along with their grievance redressal mechanisms, when applying for classification or registration.

Notably, the norms introduce a new concept of 'user safety features' as an enabling provision - technical, procedural, operational, behavioural or system-related safeguards appropriate to the risk profile of the game. These include age-verification and age-gating, time restrictions, parental controls, user reporting tools, counselling support, and fair-play and integrity monitoring. Service providers are required to disclose their `user safety features' and internal grievance mechanisms at the time of application for determination or registration.

The new rules stipulate a determination litmus test, to classify whether an online game constitutes an online money game which parent Act explicitly bans - such a test is trigerred in three situations: in case the authority itself initiates a suo motu review, where the provider has an e-sport offering, or notably, where Government specifies a category of social games basis "nature, volume or value of financial transactions or authorisation of funds" needed to participate in it.

Key criteria for classification include whether users pay fees or deposit money at any stage, the expectation of monetary rewards, the revenue model, and how in-game assets or rewards can be monetised outside the platform.

The classification process must be completed within 90 days of receiving a complete application or issuing notice in a suo motu case.

"...We wanted to, as far as possible, keep this entire thing as regulation-light as possible. Most games, which are not money games, should be able to operate with no obligation to necessarily either be determined or registered. So that entire process is optional," IT Secretary S Krishnan said.

He added, "We are not obligating anybody to apply to determine whether it is an online money game, or online social game, or esports.

Registration becomes mandatory when specifically notified by the government, based on factors such as user risk (especially for children), scale of participation, financial exposure, and the provider’s country of origin or headquarters.

E-sports platforms, however, must undergo mandatory registration, while real-money games remain outright prohibited under the law.

Once approved, service providers will receive a digital Certificate of Registration with a unique number, valid for up to 10 years. Registered entities must display their certification details prominently, appoint a point of contact, comply with data retention norms, and adhere to payment-related directives.

Every online game service provider offering an online social game or e-sport must establish and maintain a functional grievance redressal mechanism. A user dissatisfied with the provider's resolution (or in case of non-redressal) can approach the Online Gaming Authority of India within 30 days, which will aim to dispose of the appeal within a further 30 days.

A second appeal lies before the Appellate Authority that is, the Secretary, MeitY, who shall dispose of appeals, as far as possible, within 30 days of receipt.

The rules aim to create a transparent, time-bound framework for distinguishing between prohibited money games and permissible social or e-sports offerings, while formalising a registration regime where required.

The Online Gaming Authority of India will function as an attached office under MeitY, comprising representatives from key ministries including Home Affairs, Finance, Information & Broadcasting, Youth Affairs and Sports, and Law and Justice. Designed as a digital-first body, it will maintain a public list of prohibited games, handle complaints, issue directives and codes of practice, and coordinate with financial institutions and law enforcement agencies.

The Authority is designed to function as a digital office, maintaining and publishing the list of online money games, inquiring into complaints, issuing directions, orders and codes of practice, hearing appeals against decisions of service providers on grievances, and coordinating with financial institutions and law-enforcement agencies for effective enforcement.

Banks and financial institutions will have specific compliance obligations to ensure that financial flows are restricted to legitimate, registered gaming entities. Banks can ask for a certificate of registration, say, in case they notice multiple financial transactions.

If the online gaming authority determines that a game constitutes an 'online money game', it can issue orders to banks to immediately suspend, restrict, or discontinue all financial transactions related to that game.