Centre Likely to Notify Online Gaming Rules, Set Up Regulator

The Union government is likely to notify the rules under the Online Gaming Act as reported by CNBC TV18. These rules are expected to formally operationalise the regulatory framework passed by Parliament in October 2025.

A dedicated regulator for the sector is also expected to be set up alongside the notification. The move marks a significant step towards structured oversight of India’s expanding online gaming ecosystem.

Background of the Online Gaming Act

The Promotion and Regulation of Online Gaming Act was passed in October 2025 to bring clarity to the rapidly growing digital gaming industry. The law seeks to distinguish between various forms of online games based on risk and monetary involvement.

It was introduced amid concerns over consumer protection, addiction, and unregulated real‑money gaming platforms. The notification of rules is essential for translating the law into enforceable operational guidelines.

Establishment of the Online Gaming Authority of India

The government is expected to operationalise the Online Gaming Authority of India as part of the new framework. The authority will function as the primary regulatory body responsible for compliance, monitoring, and enforcement.

Its mandate is likely to include issuing guidelines, overseeing violations, and coordinating with other government agencies. The establishment of OGAI aims to centralise regulation and provide uniform standards across states.

Classification of Online Games

Under the proposed rules, online games will be formally classified into different categories. E‑sports and online social games are expected to receive policy support and promotion from the government.

In contrast, real‑money gaming is proposed to be completely banned under the new regime. This classification is intended to separate skill‑based and casual entertainment platforms from high‑risk wagering activities.

Compliance Requirements and Penalties

Companies offering online games without monetary stakes will not be required to register with the regulator. This exemption is expected to ease compliance for a large segment of casual and social gaming platforms.

However, the law proposes stringent penalties for violations related to real‑money gaming. Hosting or facilitating such games could attract imprisonment along with fines of up to ₹1 crore.

Read More: Paytm Increases Stake in First Games.

Conclusion

The proposed notification of online gaming rules represents a decisive shift in India’s digital governance framework. By classifying games, banning real‑money gaming, and creating a dedicated regulator, the government aims to bring clarity and enforcement to the sector.

The approach balances promotion of low‑risk gaming formats with strict action against prohibited activities. It is likely to mark the formal beginning of regulated online gaming in India.

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