A. Introduction

1. On April 22, 2026, the Ministry of Electronics and Information Technology (“MeitY”) notified the Promotion and Regulation of Online Gaming Rules, 2026 (“Gaming Rules”) set to come into force on May 1, 2026, in exercise of the powers conferred under the Promotion and Regulation of Online Gaming Act, 2025 (“Gaming Act”). These Gaming Rules follow the draft Promotion and Regulation of Online Gaming Rules, 2025 (“Draft Rules”), which were initially published for public consultation in October 2025.
2. In addition to the above, the MeitY has, vide separate notifications (a) brought the Gaming Act into force with effect from May 1, 2026; and (b) constituted the Online Gaming Authority of India (“Authority”) and its members.
3. The Gaming Act, among other things, introduced a blanket prohibition on online money games and sought to establish a framework for the promotion and development of e-sports and online social games. The Gaming Rules aim to operationalize the substantive provisions of the Gaming Act. Notably, the Gaming Rules also mark a few departures from the earlier Draft Rules, introducing changes in terms of scope as well as regulatory approach.

This article provides an overview of the key highlights of the Gaming Rules and touches upon the departures from the Draft Rules where necessary.

B.  Key Highlights

1. Triggers for determination of online games as ‘online money games’

Rule 8 of the Gaming Rules prescribes that the Authority (as constituted under the Gaming Act) will only be required to determine if an online game is an ‘online money game’ in the following circumstances:

• the Authority suo motu directs such determination after issuing a notice to an online game service provider (“OGSP”);
• the OGSP intends to offer the online game as an e-sport; or
• the Central Government, by notification, requires a category of online social games to be determined considering the nature, volume or value of financial transactions etc. involved in such online social games.

2. Factors for determination of online money games

The factors for determination of an online money game provided under the Gaming Rules remain aligned in principle with the Draft Rules. These are as under:

• whether the online game involves payment of fees, deposit of money or other stakes, by whatever name called, at any stage of participation;
• whether users have an expectation of winning monetary or other enrichment in return for such money or other stakes deposited by them;
• whether fee payments are used in (i) such a manner that the online social game appears to be a part of a competitive event between individuals or teams governed by predefined rules or as a registration or participation fee solely for entering the competition or covering administrative costs, or as a performance-based prize; (ii) as a subscription fee or one-time access fee; or (iii) as a bet, wager or any other stake in expectation of winning monetary or other returns (including any winnings out of such bets, wagers or other stakes);
• the structure and operation of the revenue model of the online game; and
• the manner in which rewards, benefits or in-game assets may be transferred, redeemed, monetised or used outside the game environment.

The consideration of the transferability, redemption, and monetisation of rewards, benefits, or in-game assets both within and outside the game environment as a factor for determination of an online money game was not present in the Draft Rules. Accordingly, OGSP need to carefully review this additional factor in the event their games involve the presence of such rewards, benefits or in-game assets.

3. Procedure for Determination

The Gaming Rules introduce the concept of a “Determination Order” which means an order or decision issued by the Authority with its concluded determination on whether an online game qualifies as an ‘online money game.’

For the purpose of this Determination Order, the Authority will assess the game’s technical aspects, gameplay mechanics, revenue model, and user interface, and may seek expert evaluations where necessary. The following outlines the principles governing such determinations:

• Game-specific and provider-specific determination: A Determination Order is specific to the particular online game and the particular OGSP offering it. It does not amount to a determination of the same or similar games offered by any other OGSP.
• Differential outcomes on determination: Where the Authority determines that an online game is not an online money game, the outcome differs by game type:
• in the case of an online social game, a Determination Order is issued confirming the game is not an online money game;
• in the case of an e-sport, the Authority merely informs the applicant of this finding and (such communication does not constitute a Determination Order) and proceeds to process the application for recognition and registration as an e-sport.
• Obligation to notify payment changes: Following a determination, an OGSP must inform the Authority of any proposed changes to the facilitation of payments in its online game before offering or making such changes available to users.

4. Requirement for Registration

 Under Rule 12 of the Gaming Rules, an online game is not required to be registered with the Authority unless the Central Government (by notification) requires such game(s) or category of game(s) to be registered after due consideration for factors such as: (a) risk of harm to users (including children); (b) the nature, volume or value of financial transactions; (c) the scale of user participation; (d) the country of origin or head office of the Service Provider etc.

Having said the above, the registration of e-sports with the Authority remains mandatory under the Gaming Rules. However, online social games may be offered without registration under the Gaming Rules (unless otherwise specified by the Central Government).

Under Rule 15, where an online game has been determined or registered by the Authority, the OGSP must prominently display the details of such determination or registration on the platform, application, or website through which the game is offered or made available to users.

5. Certificate of Registration: Validity and Suspension / Cancellation

The ‘Certificate of Registration’ granted with respect of an online game will be valid for ten (10) years unless surrendered by the OGSP, or suspended / cancelled by the Authority on any of the following grounds:

• the online game has changed in a manner that it is likely to be determined as an online money game;
• the OGSP has, on more than one instance, failed to comply with a direction, order, code of practice or guideline issued under the Gaming Act or the National Sports Governance Act, 2025 (for an ‘e-sport’);
• in the case of an e-sport, the recognition under the National Sports Governance Act, 2025 has expired or been withdrawn;
• the OGSP made a false or incorrect statement in the application for determination or registration;
• the OGSP has failed to pay the penalty imposed under the Gaming Act; or
• there has been a violation of the Gaming Act, the rules made thereunder, or other applicable law.

Before such cancellation / suspension, the OGSP will be provided an opportunity to being heard by the Authority

6. Grievance Redressal Mechanism

The Gaming Rules have simplified the grievance redressal mechanism to a two-tier structure / mechanism. Users must first approach the OGSP’s internal grievance mechanism and then may directly approach the Authority within thirty (30) days from the date on which the OGSP has conveyed their decision in relation to the grievance. The Authority shall endeavour to dispose of such appeals within thirty (30) days of receipt and may issue appropriate orders including corrective or remedial measures.

7. Payment facilitation for online games

• Online social games and e-sports: Every service provider that facilitates financial transactions and authorisation of funds in relation to an online social game or e-sport, as well as every OGSP offering such games, must comply with the directions, orders, guidelines or codes of practice issued by the Authority in relation to financial transactions or authorisation of funds, including facilitation, routing and settlement of user payments.
• Verification before processing payments: Prior to facilitating or authorising funds in relation to an e-sport or online social game, banks, financial institutions and other payment-facilitating persons must comply with directions of the Authority in relation to verification of the Certificate of Registration in the manner specified by the Authority.
• Online money games: Upon receipt of a direction or order from the Authority in relation to an online game determined to be an online money game, every bank, financial institution and payment-facilitating person must, without delay, suspend, restrict or discontinue facilitation of financial transactions or authorisation of funds in relation to such online money game, and furnish such information or assistance to the Authority as may be required.C. Additional Highlights

• User safety features: The Gaming Rules introduce a new defined term, “user safety features” which encompass technical, procedural, operational, behavioural, and system-related safeguards, including age verification or age-gating mechanisms, time restrictions, parental controls, user reporting and grievance redressal mechanisms, counselling support, and fair-play and integrity monitoring tools. The application to be submitted by an OGSP for determination or registration of their online games must include details related to these “user safety features”.
• Data localization: Every OGSP offering an online social game or an e-sport must comply with the directions, orders, guidelines, or codes of practice issued under the Gaming Act regarding the retention and storage of traffic data, metadata, or other related information. This data must be stored on computer resources located in India for the period and in the manner specified in the relevant direction, order, guideline, or code of practice.
• Repayment of user funds collected prior to the Gaming Act: Pertinently, the erstwhile Draft Rules included a transitional provision for the repayment of user funds collected before the commencement of the Gaming Act, requiring remittance within one hundred and eighty days. No such transitional provision has been provided under the Gaming Rules.