As of May 1, 2026, India has unified laws that cover everything from esports to social games and real money gaming. Esports is formally recognized, but online money gaming is outright banned. Here’s what you need to know.
Key Takeaways
The Promotion and Regulation of Online Gaming Rules, 2026 came into force on May 1, 2026
They stem from the PROG Act, 2025 passed by Parliament in August this year
India’s online gaming market is estimated to be worth INR 232 billion in 2024 and is set to grow to INR 316 billion by 2027
Around 45 crore Indians have been impacted by online money gaming platforms with losses worth more than Rs 20,000 crore
Esports is formally recognized as competitive digital sports
Online Gaming Authority of India has been established under MeitY to regulate the sector
Online money games are outright banned, and the punishment for facilitating them includes a 5-year jail term for repeat offenders
India’s Online Gaming Gets a Legal Framework, Finally
India’s gaming industry has long needed a single law to regulate its esports, social, and real money gaming sectors. The rules came into force on May 1, 2026, as per the Press Information Bureau on April 30. More precisely, the Promotion and Regulation of Online Gaming Rules, 2026 (PROG Rules, 2026) became effective on May Day.
They stem from the Promotion and Regulation of Online Gaming Act (PROG Act), 2025, passed by Parliament in August 2025.
The rules aim to promote esports and online social games while banning online money games.
The Scale of the Problem the Law Addresses
PROG Rules, 2026 address a serious issue affecting the industry.
India’s online gaming market is estimated to be worth INR 232 billion in 2024, with transaction-based games accounting for 77% of the revenue. The market is set to grow at a CAGR of 11%, reaching INR 316 billion by 2027. At the same time, the government estimates that around 45 crore Indians have been impacted by online money gaming platforms, with losses amounting to over Rs 20,000 crore. Gaming addiction, money laundering, and suicide due to losses have been cited as the reasons for the law.
As TalkEsport noted when PROG Act, 2025 was passed, the proposed ban of monetary-based online gaming was the biggest change to come to India’s gaming industry in years. The rules that came into force on May 1 actualized the intent of the Act.
How the Rules Classify Online Games
PROG Rules, 2026 classify online games into three categories to differentiate between acceptable and banned practices. As a result, different rules apply to different games.
Esports consist of competitive digital sports with teams and individual players who engage in tournaments. The focus is on skill, tactics, coordination, and strategic decision-making. Esports are formally recognized as acceptable games by the new law.
Online Social Games are digital games that focus on casual and skill-based play with elements of entertainment, education, or socialization. They are also deemed acceptable by the rules.
Online Money Games involve stakes, skill, chance, or a mixture of both and are outright banned by the PROG Act, 2025. The three categories of online games are the foundation of the rules, which primarily focus on distinguishing money games from those that do not involve monetary transactions.
What Is Now Banned and What Happens If You Break the Rules
As mentioned, PROG Act, 2025 banned all money-based online games. In addition, the facilitation, advertisement, and payments for such games are also prohibited. Banks and other financial institutions are barred from processing payments for online money games. Violators of the rules face severe penalties, including bans and heavy penalty charges. The enforcement mechanism involves cyber cell police at various levels, including police stations, districts, and Commissionerships.
Moreover, the Rules set the punishment for violating the rules. The punishments range from 3 years of imprisonment and fines of up to ₹1 crore for offering, facilitating, or advertising online money games. Repeat offenders face a minimum of three years in prison and a fine of ₹1-2 crore. At the same time, advertising online money games results in up to two years of imprisonment or a fine of ₹50 lakh, or both. Those who violate the rules for the second time face heavier penalties. According to the rules, the enforcement of penalties shall be done digitally, and if personal appearance is required, the offender must report in person. Penalty proceedings should be completed within 90 days from the date of filing. All penalties are paid to the Consolidated Fund of India.
The rules also require the concerned authorities to take down unauthorized apps and websites that facilitate online money gaming. Indeed, since the passage of the PROG Act, 2025, over 7,800 illegal betting and gambling websites have been blocked. Moreover, 242 such sites were blocked only in January this year.
The Six Pillars of the Regulatory Framework
The PROG Rules, 2026 comprise six pillars that form the foundation of India’s online gaming framework.
1. Online Gaming Authority of India
The Online Gaming Authority of India (OGAI) is the top-level authority tasked with ensuring the rules are followed. It is an attached unit of the Ministry of Electronics and Information Technology, with its headquarters in Delhi.
The OGAI is chaired by the Additional Secretary to the Ministry of Electronics and Information Technology (MeitY) and the members of the Selection Committee include the Joint Secretary level officers from Home Affairs, Finance, Information and Broadcasting, Youth Affairs and Sports, and Law and Justice.
Its responsibilities include maintaining and publishing a list of online money games, addressing user grievance appeals, issuing directions and codes of practice, and advising financial institutions and law enforcement agencies on matters relating to the application of the rules.
2. Determination of an Online Game
An essential aspect of the rules is the procedure for determining whether a game is an online money game or an online game that does not involve monetary transactions. Determination can be made by the OGAI on its own accord, upon request from a service provider, or on the authority of a Central Government notification.
The determination considers whether the game involves stakes, whether monetary prizes are anticipated, the revenue model of the game, and whether in-game purchases can be redeemed outside of the game. The determination process should be completed as soon as possible but no later than 90 days from the date of receipt of the request. The determination is made in the form of a determination order specifying the findings for the particular game and its service provider(s).
3. Registration of Online Games
A third key aspect of the rules is the obligation to register online games. Esports games and such other online social games as may be notified by the Central Government must be registered with the OGAI. The Rules state that the criteria for deciding which games should be subject to mandatory registration are the level of risk to users, the number of users, the online gaming transaction value, and the country of incorporation. Following the filing of the registration request, a digital Certificate of Registration with a unique number and valid for up to ten years will be issued.
Online money games cannot be registered or recognized as esports under the National Sports Governance Act, 2025.
4. User Safety Features
Service providers must ensure that safety features on their games are appropriate to the level of risk posed by the game. Such features include age verification and restriction, parental control, user reporting tools, counseling services, and user-friendly dispute resolution procedures. At the same time, disclosure of such safety features and internal dispute resolution procedures must be provided at the time of determination or registration.
5. Two-Tier Grievance Redressal
All online gaming platforms must have a grievance redressal system. If users are not satisfied with the response of the service provider, they may seek further relief from the OGAI within 30 days of the decision. The OGAI tries to expedite the processing of such Appeals and resolves them within 30 days of receipt. If the user is not satisfied with the decision of the OGAI, a further appeal can be filed with the Appellate Authority (the Secretary to MeitY) within 30 days of the date of the order. The Appellate Authority will then endeavor to resolve the dispute within 30 days of receipt of the appeal.
6. Penalties and Enforcement
As mentioned, the Rules impose penalties for violations of the rules. Penalty proceedings will be held digitally, and personal verification of the service provider’s compliance will be required if the service provider fails to appear or provide the requested evidence. The adjudication process will be completed within 90 days of the filing of the request. Additionally, penalties levied will be commensurate with the profits derived by the service provider, if any, from the violation, the losses suffered by the users due to the violation, and the seriousness of the violation. Moreover, the severity of the penalty will also depend on whether the violation is a repeat. All penalties will be paid to the Consolidated Fund of India.
