The Promotion and Regulation of Online Gaming Rules, 2026 has received positive feedback from India’s esports and gaming sector. Stakeholders believe the framework offers the much-needed clarity that has long been anticipated, while also highlighting significant areas that require further attention.
The regulations, effective from May 1, 2026, establish a structured regulatory system under the Promotion and Regulation of Online Gaming (PROG) Act, 2025. With this new structure, the Online Gaming Authority of India will be instituted as an authority focused on digital regulations. The Rules introduce a 90-day timeframe for the classification of games into categories of online money games or authorised social games and esports, requiring registration solely for designated categories and all esports titles.
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Additionally, the rules mandate that platforms adopt measures for user safety, including age restrictions, time limits, and systems for redressing grievances. They also create a robust two-tier appeals procedure and outline penalties for non-compliance.
Esports Achieves Clear Legal Distinction
Industry leaders have expressed that the rules clearly separate esports from online money gaming, an essential step for fostering trust and encouraging long-term investments in the sector.
Akshat Rathee, co-founder and Managing Director of NODWIN Gaming, noted that the framework brings essential structure to a fast-evolving environment. He stated that the advancement of the PROG Act, 2025 provides necessary clarity and organisation to India’s esports landscape. The introduction of formal title registration for esports by publishers is a particularly positive change, as it mitigates the risk of misrepresentation and prevents unauthorized platforms from claiming to be esports.
He further commented that the 90-day determination process finds a balance between regulatory scrutiny and the certainty that industry members seek.
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Rathee conveyed that this creates a straightforward message for players, teams, tournament organisers, broadcasters, sponsors, and other participants: once a title is registered, it is unmistakably acknowledged as a legitimate sporting activity.
He also underscored the importance of explicitly excluding online money games from the definition of esports. This exclusion removes confusion and reinforces that competitive gaming is based on skill, independent of wagering or financial elements.
Industry Welcomes Framework, Seeks Further Clarity
Animesh Agarwal, Co-founder and CEO of S8UL, echoed similar thoughts, stating that the framework allows esports organisations to strategise with more assurance. He described the Promotion and Regulation of Online Gaming Act, 2025, as a significant advancement for Indian esports. This legislation offers much-needed organisation to the sector while distinctly differentiating esports from online money gaming, effectively addressing long-standing ambiguities in the industry.
However, Agarwal raised concerns about the ongoing evolution of regulatory clarity, particularly regarding financial and structural issues. He pointed out that esports teams and players continue facing uncertainties about financial frameworks, noting that banks often struggle to differentiate between esports earnings and real money gaming. There is currently no definitive pathway for officially registering esports teams as recognised entities.
He further remarked on the absence of extensive protections for players and organisations. Comprehensive safeguarding for players and organisations under a well-defined regulatory framework is fundamental for transitioning the ecosystem from its initial structure to full legitimacy and sustainable growth.
Enhanced Investor Confidence and Support for Startups
From the perspective of the industry ecosystem, stakeholders expressed that the regulations could enhance investor confidence and strengthen India’s global standing.
Vishal Parekh, Chief Operating Officer at CyberPowerPC India, indicated that the formal acknowledgment of esports as a skill-based discipline could be transformative. He stated that the passage of the Online Gaming Act 2025 is a pivotal development that brings structure and accountability to the Indian gaming landscape. By classifying esports as a distinct, skill-oriented category, it dispels long-held misconceptions that have hindered the industry’s progress.
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Parekh further asserted that regulatory clarity could encourage broader participation among stakeholders. The establishment of clear guidelines and enforcement strategies will significantly contribute to building trust, not only among players and their families but also with global partners, brands, and investors viewing India as a potential growth market.
Sagar Nair, Head of Incubation at Nazara-backed LVL Zero Incubator, commented that the framework alleviates a significant burden for founders. He remarked that the Promotion and Regulation of Online Gaming Act, 2025 marks a critical moment for early-stage gaming startups in India. Regulatory clarity is essential for fostering innovation, and this framework helps eliminate uncertainties that founders have faced.
He noted that the distinct separation of esports, social gaming, and money gaming cultivates a more stable environment. For burgeoning startups, this presents an opportunity to align with a more organised ecosystem that promotes creativity, responsible development, and long-term value generation.
While the industry has generally endorsed the regulations, stakeholders emphasized that the next phase will depend on the effective implementation of the framework, particularly regarding financial transparency, player protections, and the institutional recognition of esports entities.
