SOURCE :- SIASAT NEWS
New Delhi: The government on Wednesday, April 22, notified long-awaited rules to operationalise the Promotion and Regulation of Online Gaming Act, paving the way for the sector’s digital-first regulator, “online gaming authority,” and setting out a “regulation-light” framework that would not require mandatory registration or prior determination/classification for most online social games.
The rules come into effect from May 1, 2026.
User safety features introduced
Notably, the norms introduce a new concept of “user safety features” as an enabling provision – technical, procedural, operational, behavioural or system-related safeguards appropriate to the risk profile of the game.
These include age-verification and age-gating, time restrictions, parental controls, user reporting tools, counselling support, and fair-play and integrity monitoring. Service providers are required to disclose their `user safety features’ and internal grievance mechanisms at the time of application for determination or registration.
Classification test for money games
The new rules stipulate a determination litmus test, to classify whether an online game constitutes an online money game which parent Act explicitly bans – such a test is trigerred in three situations: in case the authority itself initiates a suo motu review, where the provider has an e-sport offering, or notably, where Government specifies a category of social games basis “nature, volume or value of financial transactions or authorisation of funds” needed to participate in it.
The factors for determination take into account aspects such as whether the online game involves payment of fees or a deposit of money at any stage of participation. Expectation of monetary winnings, the structure of the revenue model, and the manner in which rewards or in-game assets are redeemed or monetised outside the game would be other touchstones.
Such determination (classification) will be completed within 90 days of a complete application or of notice issued in a suo motu proceeding.
Regulation-light approach
“…We wanted to, as far as possible, keep this entire thing as regulation-light as possible. Most games, which are not money games, should be able to operate with no obligation to necessarily either be determined or registered. So that entire process is optional,” IT Secretary S Krishnan told reporters.
He added: “We are not obligating anybody to apply to determine whether it is an online money game, or online social game, or esports.
Registration rules
Registration is required only where the Government so notifies, taking into consideration risk to users (including children), scale of participation, financial transactions, country of origin or the head office of the online game service provider offering the game, and “such other factors as the Authority deems necessary in public interest or to protect the interests of users”.
Esports, however, will require mandatory registration as specified in the parent Act. And real money games are already and explicitly banned under the provisions.
On successful determination and registration, the online gaming authority will issue a ‘digital Certificate of Registration’ with a unique registration number, valid for a period of up to 10 years.
“Registered service providers are required to prominently display the details of determination or registration on the interface through which the game is offered, designate a point of contact, comply with data retention directions, and observe directions issued in relation to facilitation of payments,” an official release said.
Grievance redressal mechanism
Every online game service provider offering an online social game or e-sport must establish and maintain a functional grievance redressal mechanism. A user dissatisfied with the provider’s resolution (or in case of non-redressal) can approach the Online Gaming Authority of India within 30 days, which will aim to dispose of the appeal within a further 30 days.
A second appeal lies before the Appellate Authority that is, the Secretary, MeitY, who shall dispose of appeals, as far as possible, within 30 days of receipt.
Role of the Online Gaming Authority
The rules aim to provide a clear, transparent and time-bound mechanism to determine whether an online game is an online money game (and therefore prohibited) or a permissible online social game or e-sport, and create a statutory registration regime for e-sports and such categories of online social games as may be notified.
The Online Gaming Authority of India is constituted as an attached office of MeitY. This multi-sectoral body will be chaired by the Additional Secretary, MeitY (ex officio), with joint secretary-level representatives from the Ministry of Home Affairs, Finance (Department of Financial Services), Ministry of Information and Broadcasting, Youth Affairs and Sports, and Law and Justice (Department of Legal Affairs).
The Authority is designed to function as a digital office, maintaining and publishing the list of online money games, inquiring into complaints, issuing directions, orders and codes of practice, hearing appeals against decisions of service providers on grievances, and coordinating with financial institutions and law-enforcement agencies for effective enforcement.
Banks to monitor transactions
Banks and financial institutions will have specific compliance obligations to ensure that financial flows are restricted to legitimate, registered gaming entities. Banks can ask for a certificate of registration, say, in case they notice multiple financial transactions.
If the online gaming authority determines that a game constitutes an `online money game’, it can issue orders to banks to immediately suspend, restrict, or discontinue all financial transactions related to that game.
SOURCE : SIASAT
