Menu
Sports

Promotion and Regulation of Online Gaming Rules, 2026

Read in:

  • News: The Promotion and Regulation of Online Gaming Rules, 2026 will come into force on 1 May 2026.

    • The focus is on user safety and industry growth.

  • Legal Basis: The Rules flow from the Promotion and Regulation of Online Gaming (PROG) Act, 2025. 

    • The Act addresses the rising harm of online money gaming. 

    • It also enables growth of e-sports and online social games. 

    • The aim is to foster innovation and creativity while protecting users from financial and social risks.

 

Online Gaming Sector

  • Online market in India: Rs 232 bn in 2024

    • Expected growth: CAGR of 11% 

    • Expected growth : Rs 316 bn by 2027.

  • The sector can be broadly divided into three distinct segments with varying implications for users and society.

    • E-sports: This refers to competitive digital sports, which are part of multi-sports events and where teams or individuals participate in organised tournaments. 

      • Success in esports requires strategy, coordination, and advanced decision-making skills.

    • Online Social Games: These are casual games that form part of everyday recreation. 

      • They are primarily skill-based and designed for entertainment, learning, or social interaction. Such games are generally considered safe.

    • Online Money Games: This segment includes games involving financial stakes. 

      • These may be based on chance, skill, or both. 

      • These platforms have raised serious concerns due to reports of addiction, financial losses, money laundering and even suicides.

  • "E-sports and online social games contribute to the creative economy and recreation, whereas online money games are associated with severe socio-economic concerns."
 




Promotion and Regulation of Online Gaming (PROG) Act, 2025

Major Features

  • The Act imposes a complete ban on all forms of online money games. 

  • This applies to games of chance, games of skill, and any mix of the two. 

  • It also prohibits their advertising, promotion and facilitation. 

  • Banks and payment systems are barred from processing transactions linked to such games. 

  • Unlawful platforms may be blocked in accordance with the Information Technology Act, 2000.

  • Strict deterrent penalties have been prescribed to ensure compliance. 

    • Offering or facilitating online money games: Up to 3 years or Up to 1 crore or both  

    • Repeat offences: 3-5 year imprisonments. 

    • Fines: 1-2 Crores Rs. 

    • Advertising such games: Up to 2 years of imprisonment or up to 50 lakh Rs or both.

 

Promotion and Regulation of Online Gaming Rules, 2026

The Rules are built around six key pillars.

  1. Online Gaming Authority of India

    1. Attached office of the Ministry of Electronics and Information Technology

    2. Head Office: National Capital Territory of Delhi.

    3. Chaired by:  Additional Secretary, MeitY.

    4. Maintains and publishes the list of online money games and inquiries into complaints.

  2. Determination of an Online Game

    1. Rules provide for clear test to classify

      1. Triggered through Suo motu action by the Authority, application by a service provider, or notification by the Central Government.

    2. It is based on objective factors such as payment of stakes, expectation of monetary winnings, revenue model, and monetisation of in game assets outside the game.

    3. To be completed, as far as practicable, within 90 days, with the outcome recorded in a determination order specific to the game and provider.

  3. Registration of Online Games

    1. Required only when notified by the Central Government. It applies to all games offered as e-sports. The decision is based on risk to users, scale, financial transactions and country of origin.

    2. Validity of registration: Up to 10 years 

    3. Online money games are not eligible for recognition or registration as e-sports under the National Sports Governance Act, 2025.

  4. User Safety Features

    1. Includes age verification, age gating, time restrictions and parental controls.

  5. Two-Tier Grievance Redressal and Appellate Mechanism

    1. 1st Appeal to Authority within 30 days if dissatisfied with provider’s resolution. Dispose appeal within 30 days

    2. 2nd Appeal to Appellate Authority ie, Secretary, MeitY. Dispose appeal within 30 days.

    3. Every online game service provider must establish and maintain a functional grievance redressal system.

  6. Penalties and Enforcement

    1. Cases are to be concluded within 90 days from receipt of a complaint and in digital mode unless physical presence is considered necessary.

    2. All penalties imposed under the Act shall be credited to the Consolidated Fund of India.

Positive impacts of these rules are:

  • Boost to creative economy 

  • Empowering youth

  • Safe digital environment

  • Strengthening global leadership.

  • In combination, the Act and the Rules balance innovation with strong safeguards, ensuring sustainable growth of the sector.




Source: PIB