India bans online money games; esports formally recognized

The Promotion and Regulation of Online Gaming Rules, 2026 came into force on May 1, creating a single regulatory framework for online gaming in India. The rules implement the Promotion and Regulation of Online Gaming Act, 2025, which Parliament passed in August 2025.

The government cited market size and reported harms when unveiling the framework. India’s online gaming market generated INR 232 billion in revenue in 2024 and is projected to reach INR 316 billion by 2027. Authorities estimate roughly 450 million people have been affected by online money gaming platforms, with financial losses exceeding Rs 20,000 crore and reports of addiction, money laundering and suicides linked to such platforms.

Under the rules, online games are sorted into three categories. Esports are defined as organized, competitive digital sport in which skill, strategy and coordination determine outcomes. Online social games are casual, primarily skill-based titles intended for entertainment or learning. Online money games are defined as games that involve financial stakes or monetize in-game assets; those games are prohibited in every form.

The ban covers offering, facilitating or advertising online money games. Banks and payment processors are prohibited from processing transactions tied to such games. Noncompliant platforms can be blocked under the Information Technology Act, 2000. Penalties for offering or facilitating online money games include up to three years’ imprisonment and fines up to ₹1 crore for a first offense, with repeat offenses carrying a minimum three-year term that can extend to five years and fines between ₹1 crore and ₹2 crore. Advertising illegal money games can lead to up to two years’ imprisonment or fines up to ₹50 lakh, with higher penalties for repeat violations. Enforcement is led by cyber cell officers at police station, district and Commissionerate levels; authorities report more than 7,800 illegal betting and gambling platforms have been shut down since the Act passed, including 242 blocked in a single operation in January 2026.

The Online Gaming Authority of India, or OGAI, has been established as an attached office of the Ministry of Electronics and Information Technology and is headquartered in Delhi. OGAI is chaired by the Additional Secretary of MeitY and includes joint secretary-level representatives from the ministries of Home Affairs, Finance, Information and Broadcasting, Youth Affairs and Sports, and Law and Justice. The authority will maintain and publish the list of online money games, handle user grievance appeals, issue directions and codes of practice, and coordinate with financial institutions and law enforcement.

The rules set out a game-determination process that OGAI, a service provider or the Central Government can trigger. Determinations should be completed within 90 days where practicable. Registration is required for esports and for categories of online social games that the Central Government notifies. Successful applicants receive a digital Certificate of Registration valid for up to ten years. Online money games cannot be registered or recognized as esports under the National Sports Governance Act, 2025.

Service providers must implement user safety measures proportionate to a game’s risk profile, including age verification and gating, time limits, parental controls, reporting tools, counseling support and fair-play monitoring. Every platform must operate an internal grievance mechanism. Users unhappy with a provider’s response can appeal to OGAI within 30 days; OGAI aims to resolve first-level appeals within 30 days. A second appeal may be filed with the Appellate Authority, the Secretary of MeitY, with an additional 30-day resolution target. Penalty proceedings will be digital unless physical presence is required and are to be concluded within 90 days of complaint receipt.

For the esports sector, the rules create a formal path to registration and potential sporting status under the National Sports Governance Act. The Sports Ministry will oversee promotion and development matters while MeitY will handle regulation. The government has indicated plans to ease mandatory registration requirements for free-to-play and non-monetized esports titles to reduce compliance costs for smaller studios and independent developers.