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On Wednesday, the government announced new rules for implementing the Promotion and Regulation of Online Gaming Act, creating a digital-first regulator known as the 'online gaming authority'. This set of guidelines presents a "regulation-light" approach, which does not mandate that most online social games undergo compulsory registration or previous classification. These regulations will begin on May 1, 2026. Importantly, the rules introduce a concept called 'user safety features', which includes various safeguards—technical, procedural, operational, behavioral, or system-related—that are tailored to the level of risk associated with the game. Examples of these features are age verification, time limits, parental controls, tools for user reporting, counseling assistance, and monitoring for fair play and integrity. Service providers must reveal their 'user safety features' and their methods for handling complaints during the application process for classification or registration.
The updated rules include a determination standard to decide if an online game is classified as an online money game, which the main Act explicitly prohibits. This assessment is triggered in three scenarios: when the authority initiates a review on its own, when the provider offers an e-sport option, or when the Government identifies a specific category of social games based on the "type, amount, or value of financial transactions or funds authorized" needed to join. To make this determination, factors such as whether there is any payment required or money deposited during participation are considered. Other important elements include whether there is an expectation of winning money, how the revenue model is structured, and how prizes or in-game assets can be exchanged or made profitable outside of the game. This classification process will be completed within 90 days of receiving a complete application or a notice from a suo motu proceeding. "Our aim was to keep this as regulation-light as possible. Most games that aren't considered money games should operate without the need for required determination or registration. This whole process is optional," IT Secretary S Krishnan shared with journalists.
He continued: "We are not forcing anyone to apply to determine if it is an online money game, online social game, or esports. Registration is only needed if the Government indicates so, based on user risks (including children), level of participation, financial transactions, the country of origin, or the headquarters of the online gaming service provider, and other factors that the Authority considers important for public interest or user protection. " Nonetheless, esports will need to have mandatory registration, as stated in the main Act. Additionally, real money games are already clearly prohibited under these rules. Once a determination and registration are successfully completed, the online gaming authority will provide a 'digital Certificate of Registration' featuring a unique registration number that remains valid for up to 10 years.
Registered service providers must clearly show their registration details or determinations on the platform where the game is available. They also need to provide a contact person, follow data storage rules, and adhere to instructions regarding payment processing, according to an official statement.
Any provider of online gaming services that offers social games or e-sports should create and keep an effective method for handling complaints. If a user is not happy with how the provider handles their issue (or if it is not resolved), they can reach out to the Online Gaming Authority of India within 30 days. This authority will try to resolve the complaint within another 30 days. If someone wants to appeal again, they can go to the Appellate Authority, which is the Secretary of MeitY, who will also try to handle appeals within 30 days of receiving them. These rules are meant to create a clear and timely process to decide whether an online game is a money-making game (which is not allowed) or an acceptable online social game or e-sport. Additionally, they aim to set up an official registration process for e-sports and other types of social games that may be announced. The Online Gaming Authority of India is established as a body connected to MeitY. This organization will be led by the Additional Secretary of MeitY and include representatives from several government departments, such as Home Affairs, Finance, Information and Broadcasting, Youth Affairs and Sports, and Law and Justice.
The Authority will act like a digital office. It will keep and share a list of online money games, investigate complaints, give orders, set rules for conduct, listen to appeals about providers' decisions on complaints, and work with banks and law enforcement for better enforcement. Banks and financial institutions will have certain responsibilities to ensure that money transactions are only allowed for authorized and registered gaming businesses. If banks notice many transactions, they can request a registration certificate. If the online gaming authority decides that a game is an "online money game," it can instruct banks to immediately stop or limit any financial transactions related to that game.
