India’s Online Gaming Law Enters Force: New Rules Redefine Market Access and Compliance

India has officially implemented its new regulatory framework for digital gaming, with the Promotion and Regulation of Online Gaming Act, 2025 (PROG Act) and its accompanying rules coming into force on May 1, 2026. The legislation marks a major shift in the governance of online gaming, aiming to clearly distinguish permitted formats from prohibited real-money gaming while strengthening user safeguards.

Centralized regulation and enforcement

A cornerstone of the new regime is the creation of the Online Gaming Authority of India (OGAI), operating under the Ministry of Electronics and Information Technology (MeitY). The authority is tasked with overseeing compliance, enforcement, and regulatory coordination across jurisdictions, supported by designated cyber cell officials at state and local levels.

The operational framework is detailed in the Promotion and Regulation of Online Gaming (PROG) Rules, 2026, notified on April 22, providing the procedures and compliance standards required for implementation.

Classification, registration, and compliance

The rules introduce a formal system to classify games as either prohibited online money games or permitted categories such as e-sports and social gaming. This determination process considers factors including entry fees, prize structures, monetization models, and the tradability of in-game assets, with decisions typically issued within 90 days.

Registration is mandatory for specific categories defined by the government or for games seeking recognition as e-sports. Approved operators receive certification valid for up to 10 years and must comply with ongoing obligations, including disclosure requirements, data retention, and regulatory reporting.

Stronger user protection measures

A key policy focus is player safety, particularly for minors and vulnerable users. Operators are required to implement safeguards such as age verification, parental controls, time limits, and grievance mechanisms, alongside fair-play monitoring systems.

The framework also introduces a two-tier grievance redressal process, allowing users to escalate unresolved complaints from platform providers to OGAI, and ultimately to MeitY as the appellate authority.

Enforcement and penalties

Enforcement procedures are primarily conducted digitally, with cases expected to be resolved within 90 days. Penalties will be proportionate to the severity of violations, taking into account user harm, financial gains, repeat offenses, and corrective actions.

Market impact

The new law establishes a more structured and transparent regulatory environment, balancing industry growth with risk mitigation. It also provides greater clarity for domestic and international operators seeking to enter or expand in India’s gaming market, while tightening controls on financial flows linked to prohibited gaming activities.