The Indian government has introduced new rules to clearly separate esports and casual online games from real-money gaming. The rules were notified by the Ministry of Electronics and Information Technology (MeitY) on April 22, 2026, and will come into effect from May 1.
These rules are part of the Promotion and Regulation of Online Gaming Act, 2025, which was passed by Parliament in August 2025. Earlier, online gaming laws in India were different across states, creating confusion. The new law creates a single national system.
Under the new framework, any online game that involves betting or putting in money with the expectation of winning money or rewards is completely banned across India. This includes games based on skill, chance, or a mix of both.
The new rules divide online games into three main types:
- Online money games (banned): Any game involving real-money stakes or winnings.
- Online social games (allowed): Free-to-play or non-money games. These will face minimal regulation in most cases.
- Esports (allowed with regulation): Competitive, skill-based games played in tournaments.
Esports has been clearly separated from gambling and will be treated as a legitimate activity. However, the new rules clearly state that any unregistered esports titles will need to register and get approval from the government. Once approved, a game can receive a certificate valid for up to 10 years. The government may also promote esports through training, events, and possible inclusion in sports policies.
A new body called the Online Gaming Authority of India has also been set up to manage the entire system and ensure the implementation of the new framework. It will handle registration, classification of games, complaints, and enforcement and also keep a national registry of approved games.
Finally, the law imposes strict penalties, including up to three years in prison and fines of up to ₹1 crore (approx. $100k), on individuals or platforms offering, facilitating, or promoting banned real-money games. The ministry has also asked banks, payment gateways, and online platforms to block transactions from real money gaming applications.
The government said that all these steps have been taken to reduce risks such as addiction and financial losses, especially among young users, as well as links to gambling, while giving fair recognition to esports titles that are skill-based online games played in tournaments or organised formats.
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