---
title: "Online Gaming in India"
date: 2026-07-23
author: "KM Team"
url: https://acuitylaw.co.in/faqs/online-gaming-in-india/
---

# Online Gaming in India

Posted On - 23 July, 2026

The gaming industry has witnessed the introduction of a landmark legislation, which has impacted the operations and existence of the online gaming industry, as a whole. The Promotion and Regulation of Online Gaming Act, 2025 (“Online Gaming Act” or “Act”) and the Promotion and Regulation of Online Gaming Rules, 2026 (“Rules”) have provided a unified legal framework for regulating online games and online betting across India.

The Online Gaming Act received the assent of the President of India on 22 August 2025. The Act has come into force with effect from 1 May 2026.

Following the public consultation of the draft Promotion and Regulation of Online Gaming Rules, 2025, Ministry of Electronics and Information Technology (“MeitY”) notified the finalised Rules vide notification on 22 April 2026, which came into force on 1 May 2026, being the same date on which the Act has also come into force.

The Act brings about significant changes from the previous legislations, prohibiting “Online Games” which involve any stakes or expectations of monetary returns.  

This FAQ seeks to provide an understanding of the key provisions of the Act and an insight on the Rules:  

1. **What is the new Online Gaming Act about and its scope of applicability?  **

The  Online  Gaming  Act  is a legislation  passed by Parliament of India  which inter alia  bans  “Online Money Games” and  establishes  a regulating authority to regulate “Online Games”. The  Act  extends to the whole of India and  applies to all  Online Games played by users in India, including operators offering Online Games from outside India.   

1. **What are the categories of Online Games under the Act?**

![](https://acuitylaw.co.in/wp-content/uploads/2026/07/image-1.png)

Under the Act, “Online Games” are classified in three categories: “Online Money Games”, “Online Social Games” and “E-Sports”:  

1. **Online Money Games:** This category includes all Online Games which are played by paying any fees or money, with the expectation of winning money or monetary awards or any “other stakes”, irrespective of whether winning is based on chance or skill.   
The expression “other stakes” includes anything which may be recognised as equivalent or convertible to money, and includes credits, coins, token or objects or any other thing else which can be purchased by directly or indirectly paying money. 
2. **Online Social Games:** This category of Online Games includes games played for entertainment, recreation and skill-building, which do not involve staking of money or expecting to win money. This category allows for the playing of games free of cost or which might require a subscription fee or a one-time fee to play the game, provided such fee does not have the nature of a wage or bet.   
3. **E-Sports:** These are organised, competitive Online Games played in either individual or team formats, and which require physical dexterity, mental agility, strategic thinking or other similar skills to be played. E-Sports can require a registration or participation fees, and performance-based prizes as well. The E-sport must be recognised under the National Sports Governance Act, 2025. However, under Rule 12(3) of the Rules, an Online Money Game is not eligible for recognition or registration as an E-Sport under the National Sports Governance Act, 2025.

1. **Which Online Games are prohibited under the Act?  **

The Act implements a blanket ban on Online Money Games. The prohibition also extends to any “Online  Money  Gaming  Services”, which has been defined to include any services offered by a person, which has the effect of aiding, abetting or inducing Online Money Games.  

Additionally, the Act prohibits any person from: 

1. aiding, abetting, inducing or being involved in the advertisement, promotion or influence of any Online Money Game, whether directly or indirectly.  
2. facilitating or authorising payments, transfers or financial transactions towards payments for any Online Money Games. (includes banks, financial institutions, payment gateways and wallets).  

1. **Which Online Games are permissible under the Act?  **

The Act permits E-Sports and Online Social Games. With respect to E-Sports, the Act aims to promote and develop E-Sports and establish it as a legitimate form of competitive sport in India. With respect to Online Social Games, the Act provides for creation of platforms and programmes to support and encourage the development of such games for recreational and educational purposes in India.  

1. **Why has the Act been enacted and what objectives does it seek to achieve? **

As per the Press Release1 dated 21 August 2025, issued by the Press Information Bureau of the Government of India, the Act has been enacted to address rising concerns over the harmful impact of Online Money Games in India, including addiction, heavy financial losses, fraud, and mental health issues.  

The objectives of the Act are two-fold: (i) protecting users and public interest by banning Online Money Games, preventing misuse of payment systems, and safeguarding against fraud, addiction, and money laundering; and (ii) promoting positive aspects of gaming such as E-Sports, social and educational games, and skill-based innovation. By establishing a central framework, the law aims to balance consumer safety with economic and technological growth, positioning India as a regulated but thriving hub for safe and responsible Online Gaming.  

1. **Is the regulation of Online Gaming a matter within the legislative domain of the Centre or the States?” **

While betting and gambling falls under Entry 34 of the State List in the Seventh Schedule of the Constitution of India, the Central Government has justified the introduction of the Online Gaming Act as a matter of public interest. Further, given that Online Gaming typically exceeds state boundaries and frequently involves foreign operators, the Centre has deemed it necessary to establish a uniform national framework. 

1. **Who has the statutory mandate to implement and oversee compliance with the Act? **

The Online Gaming Authority of India (“Authority”) has been established under Section 8(1) of the Act to implement and oversee compliance with the Act.

Rule 3 of the Rules prescribes the composition of the Authority, which consists of an ex officio Chairperson i.e. the Additional Secretary, MeitY, or such other officer who ranks below, and ex officio Members at the level of Joint Secretary drawn from the Ministry of Home Affairs, the Department of Financial Services (Ministry of Finance), the Ministry of Information and Broadcasting, the Ministry of Youth Affairs and Sports and the Department of Legal Affairs (Ministry of Law and Justice). The Authority is an attached office of MeitY, having its head office in New Delhi and operating digitally.

1. **What powers does the Online Gaming Authority have?  **

Rule 6 of the Rules sets out the powers and functions of the Authority, in addition to those conferred under the Act. These inter alia include:

1. maintaining and publishing a list of online games determined to be Online Money Games;
2. maintaining a record of Online Games registered by the Authority;
3. inquiring into any complaint relating to an Online Game;
4. issuing directions or orders to persons offering, organising or facilitating any Online Game (including in relation to advertisements and financial transactions);
5. issuing guidelines or codes of practice in consultation with the Central Government.

Under Rule 6(4), the Authority may also issue directions, guidelines or codes of practice in relation to the operations of online social games and e-sports.

1. **What is the process for determination and registration of an Online Game under the Rules?  **

The Rules provide for two distinct regulatory processes for Online Games, namely “determination” and “registration” of an Online Game. Determination is the process by which the Authority assesses whether an Online Game qualifies as an Online Money Game, whereas registration is required only for specified categories of Online Games prescribed under the Rules.

It is pertinent to note that neither process is of general application, and the Rules do not provide for any mechanism for voluntary determination or registration of an Online Game.

Under Rule 8 of the Rules, an Online Game is required to be determined by the Authority only upon:

1. suo motu direction of the Authority; or
2. an application by a service provider offering the game as an e-sport; or
3. a notification by the Central Government requiring a category of social games to be determined.

Further, Rule 9 prescribes an exhaustive set of factors considered by the Authority for determination, as under:

1. whether the Online Game involves payment of fees, deposit of money or other stakes at any stage of participation;
2. whether users have an expectation of winning monetary or other enrichment in return;
3. the manner in which the fees or deposits are applied (that is, as registration or participation fees for a competition; as a subscription fee or one-time access fee; or as a bet, wager or other stake);
4. the structure and operation of the revenue model; and
5. the manner in which rewards, benefits or in-game assets may be transferred, redeemed, monetised or used outside the game environment.

Following its assessment, the Authority issues a determination order as to whether an Online Game constitutes an Online Money Game. Where a game is so determined, its details are published in the Authority’s online register of Online Money Games. If the game is intended to be offered as an E-Sport, the Authority may also process the application for its recognition and registration under the Rules.

Rule 12 of the Rules requires only certain Online Game to be registered with the Authority where:

1. notified to be registered by the Central Government, having regard to the online game’s risk of harm to users (including children), the nature of the outcome, detrimental impact on the public, the scale of user participation, the country of origin etc. or
2. the Online Game is intended to be offered as an E-Sport.

Upon recognition and registration, the Online Game is issued a digital Certificate of Registration bearing a unique registration number, which is valid for a period of upto ten years, unless it is earlier surrendered, suspended or cancelled earlier in accordance with the Rules.

1. **Is there scope to appeal the decisions of the Online Gaming Authority under the Rules?  **

As per Rule 7 of the Rules, any person aggrieved by the order of the Authority may make an appeal to the Appellate Authority, if such appeal relates to:

1. a determination of an online game as an Online Money Game, E-sport etc.;
2. the requirement of registration under the Rules;
3. registration of an E-Sport;
4. cancellation of a Certificate of Registration;
5. an order passed by the Authority on a grievance of an aggrieved user of an online social game or e-sport;
6. imposition of a penalty under Section 12 of the Act.

The appeal must be filed within 30 days from the date on which the decision of the Authority is made available to the appellant in writing, including in electronic form. The Appellate Authority is required to give the appellant a reasonable opportunity to make a representation, and may confirm, modify or set aside the decision or order appealed against. It may also, suo motu or otherwise, call for the records of the Authority for the purpose of examining the legality or correctness of any decision or order. The appeal is to be disposed -off as expeditiously as possible, preferably within 30 days from the date of its receipt.

1. **What user safety protections, data retention and grievance redressal obligations apply under the Rules?**

1. **User safety features:** Rule 2(1)(i) of the Rules defines “user safety features” to mean technical, procedural, operational, behavioural or system related safeguards provided by an online game service provider, having regard to the nature and risk associated with such game. These safety precautions include age verification or age gating mechanisms, time restrictions, parental controls, user reporting and grievance redressal mechanisms, counselling support and fair-play and integrity monitoring tools.

1. **Point of contact:** Under Rule 16, every online game service provider offering an Online Social Game or an E-Sport must comply with the directions, orders, guidelines or codes of practice issued in relation to the designation of personnel as a point of contact and the publication of their contact details.

1. **Data retention:** Under Rule 17, every online game service provider offering an Online Social Game or an E-Sport must comply with the directions, orders, guidelines or codes of practice issued relating to the retention and storage of traffic data, metadata and other related information on computer resources located in India, for such period and in such manner as may be specified.

1. **Grievance redressal:** Under Rule 20, every online game service provider offering an Online Social Game or an E-Sport must establish and maintain a functional grievance redressal mechanism. A user who is dissatisfied with the resolution of a grievance, or where no resolution is provided, may approach the Authority and even appeal the Authority’s decision to the Appellate Authority.

1. **What are the penalties imposed for offering, advertising, or facilitating Online Money Games under the Act? **

The Online Gaming Act lays down strict penalties for anyone involved in offering Online Money Games or Online Money Gaming Services:  

1. **Offering or running an Online Money Gaming Service:** Jail up to 3 years or fine up to INR 1 crore, or both. Any repeat offence will attract imprisonment of 3-5 years, plus a fine of INR 1 to 2 crore. 
2. **Advertising or promoting Online Money Games:** Jail up to 2 years or fine up to INR 50 lakh, or both. A repeat offence will attract imprisonment of 2-3 years, plus a fine of INR 50 lakh to 1 crore. 
3. **Facilitating payments/transactions for Online Money Games (banks, FIs etc.):**  Jail up to 3 years or fine up to INR 1 crore, or both. A repeat offence will attract imprisonment of 3-5 years and a fine of INR 1 to 2 crore.  

Further, the Act provides that when a company commits an offence under this Act, every person responsible/ in charge of that part of the company, will be liable for commission of the offence.  

All of the above offences are cognizable and are non-bailable.  

1. **What is the imposition of a penalty for non-compliance under the Rules?**

Under Section 12 of the Act, a person who fails to comply with any direction or order issued by the Central Government or the Authority is liable to a penalty which may extend to INR 10 lakh, and may also face suspension or cancellation of registration and prohibition from offering, facilitating or promoting the Online Game for such period as may be determined.

Rule 21 sets out the procedure for imposing penalties and inter alia stipulates that the Authority may initiate proceedings either upon receiving a complaint or on its own initiative (suo motu). It must issue a notice to the online game service provider for conducting proceedings to assess any non-compliance.

If the service provider admits the non-compliance, the Authority may record the admission and impose a penalty. If the allegation is disputed, the service provider must show cause why an inquiry should not be conducted. If the Authority finds that action is warranted, it may impose a penalty, suspend or cancel the provider’s Certificate of Registration, or prohibit the provider from offering, facilitating, or promoting the online game for a specified period.

In determining the appropriate action, the Authority must consider factors such as any unfair advantage gained, the loss caused to others, repeat non-compliance, its seriousness and duration, the number of users affected and the extent of harm suffered, any mitigating steps taken by the provider, and whether the penalty is proportionate and effective.

1. **How does this new regulatory framework differ from the old framework? **

The Act differs from the old framework in the following ways: 

1. **Subject matter:** The previous regulatory framework comprised of the Public Gambling Act, 1867, along with various state legislations, since betting and gambling fall under the State List. However, this regime primarily addressed traditional forms of betting and gambling and did not formally recognize online gaming, gambling, betting, or waging. In contrast, the Act specifically addresses the digital landscape, regulating online gaming broadly while prohibiting Online Money Games, thereby creating a distinct and modern legal framework. 
2. **Codified Act:** The old regime was governed by multiple State legislations, the legality of games involving money depended on the specific provisions laid out in each State legislation, which varied widely in scope and application. In contrast, the Online Gaming Act establishes a single, codified central legislation that applies uniformly across India, providing clarity and consistency in regulating online gaming and money-based games. 
3. **Test for legality:** Under the old regime, the judiciary developed the ‘skill-versus-chance’ test to determine the legality of games involving money. Subject to each State legislation, a game was permissible if it required a certain degree of skill. The Online Gaming Act, however, dispenses with this distinction, prohibiting any Online Games that involve monetary stakes, regardless of whether they are games of skill or chance. 

1. **Have the previous laws on gaming and gambling been repealed?  **

No, the previous laws on gaming and gambling, including the Public Gambling Act, 1867 and the various State gambling legislations, have not yet been repealed. The Online Gaming Act operates concurrently as a central law, specifically regulating Online Gaming and money-based games, while traditional state laws continue to govern physical betting and gambling within their respective jurisdictions. Further, as per Section 18 of the Online Gaming Act has an overriding effect and stipulates that the provisions of this Act shall be in addition to, and not in derogation of the provisions of any other law currently in force. However, in the event of any inconsistency between the provisions of this Act and those of any other law, the provisions of the Online Gaming Act shall prevail to the extent of such inconsistency.

1. **Does the prior differentiation between “games of skill” and “games of chance” still hold good in law?  **

Under the previous regime, the legal difference between a “game of skill” and a “game of chance” was impertinent in deciding the legality of a game. Any monetary earning in games of skill such as rummy, and sports fantasy games were permissible. However, under the Act, the key question in determining the legality is whether the game involves staking money with the hope of winning more? If yes, it would fall under the ambit of“Online Money Games”, irrespective of whether skill is utilised or not. 

1. **Is the Online Gaming Act aligned with global practices based or based on any foreign legislation? **

While India’s law is quite strict, there are partial similarities with legislations of other jurisdictions. Key global practices that resemble India’s approach include:  

1. **Japan:** In Japan, gambling is governed by the Penal Code, which explicitly bans online gambling. This prohibition extends to accessing and participating in foreign online casinos, even if those platforms are legally operated abroad. An amendment to the Act on Countermeasures Against Gambling Addiction, commonly known as the Anti-Gambling Act, also outlaws websites that facilitate illegal online gambling or promote offshore gambling services. However, Japan permits certain forms of physical gambling, such as land-based casinos located within designated Integrated Resort zones, provided they are licensed under the 2018 IR Implementation Law. Japan’s stance closely mirrors India’s, as both nations prohibit online gambling and enforce criminal penalties on those who operate, engage in, or advertise such activities, while still allowing regulated physical gambling venues.  
2. **China:** Mainland China enforces a comprehensive ban on gambling, permitting only two government-operated lotteries. The cornerstone of this prohibition is Article 303 of the Criminal Law of the People’s Republic of China, which outlaws gambling for profit and related activities. This restriction encompasses all forms of gambling, including physical casinos, sports wagering, poker, online platforms, and private betting. Additionally, the Chinese government actively blocks access to overseas gambling websites. Violations of these laws can lead to harsh penalties, such as substantial fines and imprisonment of up to three years. Compared to India, China’s regulatory stance on gambling is notably more stringent.  
3. **Singapore:** The Gambling Control Act, 2022 states that any person who advertises unlawful gambling is said to commit an offence and shall be liable for a fine. This provision penalising the advertising of any prohibited games or forms of gambling is also provided for under the Online Gaming Act.    
Conversely, Western regulatory regimes differ from India’s and focus more on licensing and regulating rather than prohibiting real money games:  
4. **United States of America:** The United States operates under a dual regulatory framework where individual states have the primary authority to regulate online gambling, while federal laws establish certain boundaries. The federal regulatory framework of the Unlawful Internet Gambling Enforcement Act (“UIGEA”) of 2006 does not prohibit online gambling but rather states that if the online gambling transaction is illegal under state or federal law, banks and payment processors will be required to block the transaction. State governments remain in control of legalizing online gambling operations within one state’s borders. They have the authority to allow different forms of online gambling, including online casinos, online poker, online sports betting, and fantasy sports and can establish their own regulatory authority. This differs from India’s centralized prohibition approach, as operators must obtain separate licenses for each state in which they wish to operate 
5. **Australia:** The Interactive Gambling Act, 2001 prohibits many forms of interactive gaming i.e. a gambling service provided on broadcasting, datacasting, telephone, and online platforms. Certain interactive gambling services such as online blackjack, poker, roulette or slot machines, and any advertisements of the same are prohibited. Further, all regulated interactive gambling requires licensing. Similar to the Indian legislation, the Australian Act provides for an authority i.e. the Australian Communications and Media Authority (“ACMA”) which maintains a list of all licensed interactive gambling providers that are permitted to operate in Australia and any complaint of services offered or advertisements made can be made to the ACMA. 
6. **United Kingdom:** The Gambling Commission, set up under the Gambling Act, 2005, is the primary regulator of the UK gambling industry. It regulates various forms of gambling, including online gambling, issues licenses to operators who meet the relevant requirements, investigate complaints and impose penalties for non-compliance. The Commission is vested with similar functions as an authority that is to be set up under the Indian Act. Furthermore, the UK has specific regulations for remote gambling operators offer their services to UK residents, mandating that they obtain a license.  

While the Indian statute bears similarities with respect to procedure, most Western regulatory regimes, focus on licensing and regulating rather than prohibiting real money games. The Indian Online Gaming Act bans all Online Money Games, failing to distinguish between games of chance and skill for prohibition.

**Disclaimer: The information contained in this document is not legal advice or legal opinion. The contents recorded in****the said document are for informational purposes only and should not be used for commercial purposes. Acuity Law****disclaims all liability to any person for any loss or damages caused by errors or omissions, whether arising from****negligence, accident or any other cause.**

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