India bans real-money online betting, reclassifies esports

The Ministry of Electronics and Information Technology notified rules under the Promotion and Regulation of Online Gaming Act, 2025, on April 22, 2026, with the regulation taking effect May 1, 2026. Parliament passed the law in August 2025 to replace a patchwork of state-level rules with a single national framework.

The new rules outlaw online games that require players to stake money with an expectation of winning money or rewards. Free-to-play social games are allowed and will generally face limited oversight. Esports are defined as competitive, skill-based games played in tournaments or organized formats and are permitted under regulatory oversight, provided titles are approved and certified.

The ban on real-money online games covers any title that involves betting or financial stakes, regardless of whether outcomes depend on skill, chance or both. Platforms, developers and other entities that offer, facilitate or promote banned games face penalties including fines up to ₹1 crore (about $100,000) and imprisonment for up to three years. The ministry has directed banks, payment gateways and online platforms to block transactions related to real-money gaming applications.

A new regulator, the Online Gaming Authority of India, will register and classify games, maintain a national registry of approved titles, handle complaints and enforce the rules. Esports titles not already on the registry must seek government approval; approved games can receive certificates valid for up to 10 years.

The rules include measures aimed at protecting young users and reducing gambling-related harms. The government cited concerns about addiction, financial losses and links between wagering and gambling as reasons for banning real-money wagering in online games. Officials also indicated the state may support esports through training programs, events and possible inclusion in broader sports policies.

Developers and tournament organizers that rely on prize pools or entry fees must verify their titles’ registration status and meet certification requirements to operate legally as esports. Operators of social or casual games that do not involve monetary stakes will generally face limited regulation under the new framework.

The act centralizes authority that had been divided across Indian states, creating a single national standard for classification and government approval of esports titles while criminalizing commercial activity that involves betting or financial stakes in online games.