BT Explainer: What are the new online gaming rules and what changes for platforms and users?

The government has officially introduced the Promotion and Regulation of Online Gaming Rules, 2026, set to take effect on May 1. This legislation establishes the framework under the Promotion and Regulation of Online Gaming (PROG) Act, 2025, which was enacted in August 2025 to address the challenges linked to online money gaming while fostering a safe environment for e-sports and social gaming. The primary objective of these new rules is to establish India as a global center for gaming innovation, while safeguarding users against financial loss, addiction, and deceptive promises of quick profits. But what exactly do these Online Gaming Rules entail? These regulations provide a practical structure for how the law will function. A formal classification system for online games is introduced, along with regulations for specific categories and defined responsibilities for gaming platforms. Additionally, a digital-first regulatory body is established, which mandates user safety protocols and creates a process for resolving grievances and appeals. At the heart of this framework is a 'determination test' that assesses whether a game qualifies as an online money game or falls under permissible social games or e-sports. This classification can be initiated by the regulator, through applications from gaming companies, or at the government’s request. The classification will consider aspects such as payment requirements, potential monetary rewards, revenue models, and the conversion of in-game achievements into real-world value. The regulatory body is expected to finalize classifications within 90 days. The newly formed Online Gaming Authority of India will serve as the central digital regulator, operating under the Ministry of Electronics and Information Technology (MeitY). This authority will include representatives from various ministries, such as home affairs, finance, and sports, ensuring comprehensive oversight. While not all games will require registration, those in specified categories, particularly those identified as e-sports, will need to register based on user risk and financial transactions. Approved platforms will receive a digital certificate valid for up to ten years. Importantly, any games categorized as online money games will not be eligible for e-sports recognition. Registered platforms must adhere to multiple obligations, including displaying their registration status, designating a contact person, and following data retention policies. They are also required to transparently communicate their safety measures and grievance handling procedures. The new rules outline essential user safety features tailored to each game's risk profile. These features include age verification, time limits, parental controls, reporting tools, and support systems to ensure fair play, all aimed at minimizing addiction risks and protecting vulnerable users, particularly minors. To address user complaints, a two-tier grievance redressal system has been established. Users will first approach the gaming platform, and if unsatisfied with the outcome, they can escalate their complaint to the Online Gaming Authority within 30 days. Further appeals can be made to the Secretary of MeitY, who serves as the Appellate Authority, with resolutions expected within 30 days for each stage. In terms of enforcement, the rules stipulate penalties for non-compliance, with proceedings primarily conducted online and expected to conclude within 90 days. Penalties will vary based on the nature of the violation, benefits gained from non-compliance, user harm, and whether the violation is recurrent.