Government Notifies New Gaming Regulations; Effective May 1

The Government of India has formalised a new regulatory structure for the online gaming sector under the Promotion and Regulation of Online Gaming Act, 2025, clearly separating permissible gaming activities from those that are prohibited. 

Ban on Real-Money Gaming and Scope of Rules 

Under the newly notified framework, real-money online gaming platforms are not allowed to operate and cannot be registered under the law. The rules will come into effect from May 1. 

Electronics and IT ministry secretary S. Krishnan stated that the prohibition is explicit, while a lighter regulatory approach will apply to non-monetary gaming platforms.  

These include casual and entertainment-based games, which can function without mandatory registration in most cases. However, certain segments such as e-sports may still require recognition. 

The rules follow consultations involving more than 2,500 stakeholders, many of whom had advocated for a more flexible approach. Despite this, the government retained its position due to concerns around user safety, financial risks, and the presence of unregulated platforms.  

Earlier, companies such as Mobile Premier League, Dream11 and Paytm First Games had already scaled down or discontinued parts of their operations after the law was introduced. 

Regulatory Authority and Game Classification 

The framework provides for the creation of the Online Gaming Authority of India, a 6-member body chaired by an Additional Secretary from the IT Ministry, with representation from ministries including home affairs, finance, information and broadcasting, sports, and law and justice. 

This authority will classify games through three routes: suo motu review, applications from e-sports bodies, or government notifications. The evaluation will focus on whether a game involves fees, deposits, or stakes, and whether users participate with expectations of monetary or similar gains. 

A timeline of 90 days has been defined for such determinations, and not all games will require mandatory classification. 

User Safeguards and Compliance Requirements 

The rules introduce mandatory safeguards such as age verification, parental controls, and usage limits to address financial and behavioural risks.  

The government also has the authority to direct companies to store traffic data, metadata and related information on servers located within India when required. 

For games that undergo registration, certification validity has been extended to up to 10 years, compared to five years proposed earlier, providing longer-term operational clarity for developers and organisers. 

Enforcement Through Financial System and Industry Impact 

A key aspect of the framework is enforcement through the financial system. Banks, payment gateways, and financial institutions are required to verify whether a platform holds a valid registration before enabling transactions.  

If a platform is identified as an illegal real-money gaming service, all payment processing must be immediately blocked. 

Read More: Centre Proposes Changes to Sugarcane Control Order on Mill Distance and Payments! 

Conclusion 

The new rules establish a defined structure for India’s online gaming industry, combining strict restrictions on monetary gaming with a regulated environment for non-monetary platforms, alongside enhanced user protection and oversight mechanisms. 

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