Gaming gets new rulebook as India tightens oversight from May 1
India’s new framework for online gaming is set to come into force from May 1, bringing clearer rules for the fast-growing digital gaming sector.
The regulations operationalise the Promotion and Regulation of Online Gaming (PROG) Act, 2025, aimed at distinguishing between banned real-money games and permitted e-sports or social gaming, while strengthening user safety.
Clear classification and light-touch regulation
The rules introduce a structured mechanism to determine whether a game qualifies as a “money game” or a legitimate e-sport or social game. The government has opted for a relatively light regulatory approach, avoiding mandatory registration for most social games.
New regulator to oversee sector
A dedicated Online Gaming Authority of India will act as the sector’s regulator under the Ministry of Electronics and IT. It will classify games, handle complaints, issue guidelines, and coordinate with banks and law enforcement.
Mandatory registration for e-sports
E-sports platforms must register to operate in India, with approvals valid for up to 10 years. Certain social games may also require registration depending on risk factors such as financial transactions and user base.
Focus on user safety
To address concerns like addiction and fraud, the rules mandate safety features such as age verification, time limits, parental controls, and grievance redressal systems.
Two-tier grievance system
Users can escalate unresolved complaints to the regulator, with a final appeal lying with the IT Secretary, ensuring time-bound dispute resolution.
Banks to monitor transactions
Financial institutions will play a key role by restricting transactions to authorised platforms. The regulator can also direct banks to block transactions linked to illegal money games.
Industry reaction mixed
While the e-sports industry has welcomed the move as a step toward legitimacy, some stakeholders have flagged gaps around financial clarity and banking practices.
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