Significance of new rules on determining, registering online games

On 22 April 2026, the Ministry of Electronics and Technology (MeitY) notified the Promotion and Regulation of Online Gaming Rules, 2026, which came into force on 1 May 2026. The rules supplement the Promotion and Regulation of Online Gaming Act, 2025, which established the principal statutory framework for the regulation of online gaming in India, but left several critical aspects of its implementation unaddressed.

Through the rules, the MeitY clarified the operational mechanism under the above-mentioned act, as well as criteria and procedures for the assessment, determination and classification of online games.

The act prohibits online money games, defined broadly as an online game, irrespective of whether such game is based on skill, chance, or both, played by a user by paying fees, depositing money or other stakes in expectation of winning monetary or other forms of enrichment.

Online gaming authority and determinations

The act also created an online gaming authority as the central regulator responsible for overseeing compliance, determining the categorisation of the games, maintaining regulatory records and enforcing the statutory regime.

Part III of the rules sets out the process and factors that the authority must consider when determining whether a digital offering constitutes an online game, and how it should be classified for regulatory purposes.

Under the rules, an online game shall only be submitted to the authority to determine if the same is an online money game or otherwise, referred to under the rules solely as “determination”, if: (1) the authority directs an online game service provider to have one or more of its online games determined by issuing a notice; (2) the online game service provider intends such online game to be offered as an e-sport; or (3) the central government, by notification, requires a category of online social games to be submitted for determination.

In its determination, the authority shall consider: (1) whether the game involves the payment of fees for participation; (2) whether users have an expectation of winning money or any other form of enrichment; (3) the manner in which payment of fees or deposits are used; (4) the structure and operation of the revenue model of the online game; and (5) the manner in which rewards, benefits or in-game assets are transferred, redeemed, monetised or used outside the game environment.

Ambiguity in online game classification

While the framework provides a degree of regulatory certainty, where developers and platform operators are privy to criteria on which the online games shall be determined, the determination framework is not entirely free from ambiguity.

Modern digital games frequently incorporate virtual currencies, digital assets and other monetisation factors, and the question of when an in-game reward, token or asset creates a sufficient expectation of economic benefit to alter the classification of a game may generate interpretative disputes. As gaming models evolve, developers may face challenges in predicting how the authority will apply the determination criteria in practice.

Part IV of the rules complements the determination framework by establishing a registration regime for recognised categories of online games, including when the online game is intended to be offered or made available as an e-sport. Through this mechanism, the authority would issue certificates of registration and maintain official registers, creating a formal compliance ecosystem.

Registration burdens and regulatory discretion

This registration mechanism could potentially act as a mark of legitimacy, improving user confidence. At the same time, the registration mechanism introduces a new layer of regulatory responsibilities, where the launch of an online game may be dependent on regulatory approval. Smaller online game operators may find these requirements resource-intensive, particularly where ambiguities arise in the determination criteria.

Consequently, the effect of the rules is twofold: (1) bringing much-needed procedural clarity by establishing a dedicated regulator, as well as a structured determination process; and (2) centralising significant decision-making authority within the regulator, leaving several interpretative questions to be resolved through future administrative practice.

Ultimately, the success of the new framework will depend on how consistently and transparently the authority exercises its powers. If the process is reasoned and publicly accessible, the rules could provide legal certainty to the sector.

Ashima Obhan is a senior partner and Priyanka Narayanan is a senior associate at Obhan Mason