Online Gaming Rules bring clarity, boost esports credibility but gaps remain, say industry stakeholders

India's esports and gaming sector is abuzz following the announcement of the Promotion and Regulation of Online Gaming Rules, 2026, which is set to take effect on May 1, 2026. Industry leaders have expressed optimism that this new framework offers much-needed clarity, while also identifying several critical areas that require further attention. The upcoming regulations will establish a formal regulatory body, the Online Gaming Authority of India, designed to oversee the evolving landscape of online gaming. A significant aspect of the rules is the introduction of a 90-day timeframe for determining whether games fall under the categories of online money games or permissible social games, including esports. Additionally, the regulations mandate registration for specific categories and all esports titles, ensuring that stakeholders operate within a defined legal framework. To enhance user safety, the regulations will require platforms to implement crucial features such as age verification, time management tools, and systems for addressing grievances. Furthermore, a two-tier appeals mechanism will be established, alongside penalties for any violations of these rules. Industry experts have highlighted that the new regulations distinctly differentiate esports from online money gaming, an essential move for fostering trust and attracting long-term investments. Akshat Rathee, co-founder and Managing Director of NODWIN Gaming, noted that this structure is vital for the rapidly changing ecosystem. He emphasized that formal registration of esports titles by publishers will eliminate misrepresentation and prevent unauthorized platforms from claiming to be part of the esports sector. Moreover, the 90-day classification process aims to provide a balance between necessary oversight and the certainty that industry players need to thrive. Rathee remarked that this clarity sends a strong message to players, teams, tournament organizers, and sponsors that registered esports are officially recognized as legitimate sports disciplines. Animesh Agarwal, Co-founder and CEO of S8UL, echoed similar sentiments, stating that the new framework allows esports organizations to strategize with greater confidence. While he applauded the separation of esports from online money gaming, he raised concerns about ongoing uncertainties regarding financial structures and the ability of banks to differentiate between esports income and real money gaming. Agarwal also pointed out the lack of comprehensive protections for players and organizations, stressing the need for stronger regulatory safeguards to ensure the ecosystem’s transition from a nascent stage to one of full legitimacy and sustainability. From a broader perspective, stakeholders believe that these regulations could enhance investor confidence and elevate India's position in the global gaming market. Vishal Parekh, COO at CyberPowerPC India, described the formal recognition of esports as a skill-based category as transformative, stating that it addresses prevailing misconceptions that have hindered the industry’s growth. The introduction of these regulations is seen as a pivotal moment for early-stage gaming startups in India, according to Sagar Nair from Nazara-backed LVL Zero Incubator. He believes that the clarity provided by these regulations will foster innovation and create an environment conducive to responsible design and long-term value creation. While the industry welcomes these developments, the successful implementation of the framework will be crucial, particularly in terms of financial clarity, player protections, and the institutional acknowledgment of esports entities.