Contributors:

Ms Shreya Dalal, Associate Partner
Mr Abhishek Nair, Associate

On 22 April 2026, the Ministry of Electronics and Information Technology notified the Promotion and Regulation of Online Gaming Rules, 2026 (Gaming Rules), under the Promotion and Regulation of Online Gaming Act, 2025 (Gaming Act). These rules are scheduled to come into force on 1 May 2026.

The Gaming Rules provide the operational framework for implementing the Gaming Act. They have establish detailed procedures for the classification (determination) of online games, registration of permissible online social games and e-sports, constitution and functioning of the regulatory body, grievance redressal, compliance obligations, and enforcement mechanisms.

Establishment of the Online Gaming Authority of India

The rules constitute the Online Gaming Authority of India (Authority) as an attached office of the Ministry of Electronics and Information Technology (MeitY). This Authority comprises of:

• A Chairperson (Additional Secretary or Joint Secretary-level officer from MeitY, ex officio).
• Ex officio Members from the Ministries of Home Affairs, Finance (Department of Financial Services), Information and Broadcasting, Youth Affairs and Sports, and Law and Justice.
• A Secretary (Director-level officer with IT experience) and supporting staff.

The Authority is empowered to function primarily in digital mode, with provisions for meetings (physical or digital), decision-making by majority, and emergency actions by the Chairperson, with its head office in Delhi.

Key Functions of the Authority

The Authority is responsible for:

• Determining whether an online game qualifies as an online money game (which is prohibited as per the Online Gaming Act, 2025) based on factors such as payment of fees/deposits/stakes, expectation of monetary returns, revenue model, and the ability to monetise rewards outside the game environment.
• Maintaining and publishing a list of determined online money games.
• Processing applications for registration of online social games and e-sports.
• Issuing directions, guidelines, and codes of practice on user safety, grievance redressal, fair play, data retention, payment facilitation, and cybersecurity.
• Handling grievances and appeals from users and service providers.
• Inquiring into non-compliance and imposing penalties under the Gaming Act.

Determination and Registration Process

Determination: The Gaming Rules have now created a procedure to pass a determination order to adjudicate on whether an online game is an online money game or not. However most online games do not require prior determination unless the Authority initiates it suo motu, the provider seeks to offer it as an e-sport, or the Central Government notifies a category of social games for scrutiny. The determination process involves notice, opportunity to be heard, examination of game mechanics and revenue models, and issuance of a determination order within a targeted timeline of 90 days.

Registration: The Gaming Rules now mandate registration for e-sports and, in certain cases, online social games (based on risk to users, scale of participation, financial aspects, etc.). Online money games are ineligible for registration as e-sports. A digital certificate of registration is thereafter issued, which is valid for up to 10 years, subject to conditions as may be applicable. Service providers must prominently display determination / registration details and refrain from misrepresenting games. Furthermore, changes affecting payment facilitation must be notified to the Authority.

Obligations of Online Game Service Providers

Providers offering online social games or e-sports must comply with requirements relating to:

• User safety features (including age verification, parental controls, time limits, and grievance mechanisms).
• Appointment of a point of contact.
• Data retention (traffic data, metadata) on Indian servers where specified.
• Facilitation and routing of payments (with prior verification of registration / determination status).
• Fair play standards and periodic compliance reporting.

Banks and financial institutions must verify registration before facilitating transactions and immediately suspend services for determined online money games upon receiving directions from the Authority.

Grievance Redressal and Appeals

Service Providers must maintain an internal grievance redressal mechanism. Aggrieved users may escalate unresolved complaints to the Authority within 30 days, which endeavours to dispose of them within further 30 days. Further appeals lie to the Appellate Authority (Secretary, MeitY) within 30 days.

Penalties and Enforcement

The rules detail the inquiry process for imposing penalties under Section 12 of the Gaming Act, including notice, opportunity of hearing, and factors for determining penalty quantum. Non-compliance can result in suspension or cancellation of registration, in addition to monetary penalties and other sanctions under the Gaming Act.

MHCO Comment

The Gaming Rules operationalise the Gaming Act by creating a structured, primarily digital regulatory regime centred on the Online Gaming Authority of India. They seek to distinguish between prohibited online money games (involving stakes and expectation of monetary gain) and permissible online social games and e-sports, while imposing significant compliance burdens on service providers regarding user protection, payments, and data.

Although the framework promotes e-sports and non-monetary games through registration and potential guidelines, the detailed determination process, ongoing obligations, and strict enforcement mechanisms (including financial transaction blocks) are likely to increase operational complexity and costs for the industry. Platforms previously reliant on real-money gaming will need to adapt swiftly or restructure offerings before the effective date, i.e. 1 May 2026. The rules reflect a cautious approach prioritising user safety and prohibition of wagering, but their practical impact will depend on the Authority’s implementation, including the issuance of further guidelines and the efficiency of determination/registration processes.

This update was released on 01 May 2026.

The views expressed in this update are personal and should not be construed as any legal advice. Please contact us directly on +91 22 40565252 or contact@mhcolaw.com for any assistance.

Legal Update Team
MANSUKHLAL HIRALAL & COMPANY
Advocates, Solicitors and Notaries
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