India Bans Real Money Gaming, Esports Get Green Light

India's comprehensive online gaming regulatory framework is set to become operational on May 1, 2026, under the Promotion and Regulation of Online Gaming (PROG) Act, 2025. This new legislation establishes an Online Gaming Authority, an attached office of MeitY, to oversee the sector.

The authority will be responsible for regulating and classifying gaming platforms, distinguishing between permissible e-sports and social games, and prohibited online money games. E-sports and certain notified social games must undergo a registration process.

A key aspect of the new rules is the "determination test" to classify games. Factors such as fees, monetary winnings, and revenue models will be considered. Registration is mandatory for e-sports and notified social games, with successful registration granting a certificate valid for up to 10 years.

The framework also introduces "user safety features," including age verification and time restrictions, to mitigate addiction and risks. A two-tier appeal structure is in place for grievance redressal, with the authority and the IT Secretary serving as appellate authorities. Banks and financial institutions play a role in ensuring financial flows are restricted to legitimate gaming entities.