Online money games can neither be registered nor determined: S Krishnan, MeitY Secretary

The government has rolled out a calibrated, light-touch regulatory framework for the online gaming sector under the Promotion and Regulation of Online Gaming Act (PROG Act), with a clear prohibition on online money games and minimal compliance requirements for most other formats, S Krishnan, Secretary at the Ministry of Electronics and Information Technology (MeitY), said. 

Krishnan emphasised that the rules are designed to avoid overregulation and allow the majority of online games to operate without mandatory approvals. “We wanted to, as far as possible, keep this entire regulation as 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,” he said, adding that developers are not required to seek classification or registration simply to offer a game.

The framework introduces a limited and conditional mechanism for “determination”, or classification of games, which will only be triggered in specific circumstances. “We are not obligating anybody either to apply to determine whether it is an online money game or an online social game,” Krishnan said, explaining that such determination would arise only if the authority acts on its own, if a service provider seeks classification—particularly in the case of new formats such as e-sports—or if the central government decides to notify certain categories of games due to emerging concerns such as addiction.

At the same time, the government has retained strict provisions for real-money gaming. “It is very clear that an online money game is banned. They can neither be registered nor determined,” Krishnan said, reiterating the government’s hardline stance against such formats.

To bring greater clarity to classification, the rules lay down objective criteria including whether there is payment of fees or stakes, expectation of earnings, the revenue model of the platform, and the manner in which in-game assets are monetised, including outside the game environment. “The expectation of winning will be clearly specified,” Krishnan noted, adding that distinctions between registration fees, prizes and wagering elements have also been sharpened to reduce ambiguity.

He further clarified that any determination will be specific to a particular game and its publisher. “You can’t say the same game with a different publisher can automatically be treated the same. It is specific to that particular game and that particular provider,” he said.

Where determination is triggered, the authority has been given a defined timeline to act. “There is a 90-day time limit within which this determination needs to be made, and the outcome is to be recorded in a determination order,” Krishnan said, underscoring the intent to ensure procedural clarity and accountability.

Registration, meanwhile, has been made a narrowly applicable requirement. Krishnan explained that only certain categories of games—such as those with high user participation, financial transactions or other specified risks—will be notified for mandatory registration. “So far, nothing has been specified. If there is a need, then we will notify those categories,” he said, indicating that the government will adopt a phased and need-based approach.

The framework also introduces a new concept of user safety features, which Krishnan described as a combination of technical, procedural and behavioural safeguards aimed at protecting users. These include provisions related to cybersecurity, fair play, financial transaction integrity and system-level controls. Alongside this, a two-tier grievance redressal mechanism has been put in place within organisations, with further recourse to an appellate authority.

Highlighting key changes from earlier drafts, Krishnan said the government has simplified several aspects to reduce discretion and potential disputes. “The big change really is that determination is not mandatory,” he said, adding that the earlier concept of “material change” has been removed to avoid ambiguity. The validity of registration certificates has also been extended from five years to 10 years.

Institutional changes have also been introduced, including an expansion of the regulatory authority to six members with representation from the Ministry of Home Affairs, and an increase in quorum requirements. Emergency response timelines have been shortened from seven days to three days, reflecting the need for faster intervention in critical cases. The authority has also been granted explicit powers relating to confidentiality of applicant information, data retention, compliance reporting and financial transaction oversight.

Krishnan said the final framework reflects extensive stakeholder consultations involving around 2,500 participants, including industry bodies, companies, academia, think tanks and legal experts. “Many of the issues that were raised—on definitions, classification and governance—have been taken into account,” he said.

The rules will come into effect from May 1, marking the beginning of a new regulatory regime for India’s online gaming sector that seeks to balance innovation with user protection and stricter oversight of high-risk formats.