- India’s Promotion and Regulation of Online Gaming (PROG) Act 2025 comes into effect from May 1, 2026.
- Complete ban imposed on online money gaming, including ads and transactions.
- A new Online Gaming Authority has also been created to regulate and classify games.
India is about to see one of its biggest policy changes in gaming. The official announcement has stated that the Promotion and Regulation of Online Gaming (PROG) Act, 2025, along with its 2026 Rules, will officially come into effect from May 1, 2026.
So, what this new policy does is that it brings a structure for how online games will operate in the country going forward. If I were to explain in simple terms, the government is trying to do two things at once here: push India as a global gaming hub while also tightening control around areas that have raised concerns, especially real-money gaming.
Online games are classified into esports, social games, and money games
The first major change is how games are classified. The framework splits online games into three categories: esports, online social games, and online money games. Esports and casual skill-based games fall on the safer side and are expected to be supported.
Developments on the same dates back to August 2025, when India had already proposed the Online Gaming Bill, clearly targeting real-money games and gambling-style apps while giving esports formal recognition as a sport.
That early draft had already hinted at stricter rules, including concerns around addiction, financial risks, and how some systems push players toward spending. The bill was well-received by many industry experts, stating it redefines the Esports and Gaming Future.
Now, that stance has turned into a firm rule. The biggest talking point is the complete ban on online money gaming, regardless of whether the game is based on skill or chance. Advertising, promotions, and even financial transactions linked to such games are blocked.
This means banks won’t process related payments. The penalties are serious too, which will be going up to five years of imprisonment and fines that can reach ₹2 crore (approx $2.1 million) for repeat violations.
To manage all of this, a new body called the Online Gaming Authority of India is being set up under MeitY. This authority will be responsible for reviewing and classifying games, deciding whether they’re allowed or prohibited within a 90-day window.
It will also maintain an official list of banned titles and handle registrations for esports and approved games. Games that are allowed to operate will need to follow rules like age verification, parental controls, and time limits to have strong user safety.
Also, every game is checked within 90 days to decide if it’s allowed or banned, but only certain categories, like esports or large-scale games, need formal registration. The entire setup is digital-first, so processes like approvals and complaints will mostly happen online.
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