Industry executives, requesting anonymity, said they need more operational guidance on classification norms, compliance thresholds, and approval processes for new gaming formats. Stakeholders added that the absence of phased implementation of the rules could create uncertainty for companies required to immediately implement user safety and compliance measures.
The Rules, notified on April 22 and effective from May 1, operationalise the Promotion and Regulation of Online Gaming Act, 2025, creating a centralised framework for the classification, registration, and oversight of online games under the Online Gaming Authority of India (OGAI), an office attached to the MeitY.
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The PROG Rules, 2026, distinguish prohibited online money games from permissible online social games and e-sports, while mandating user safety, payments, data handling, and compliance requirements. The framework also formalises the recognition of e-sports and other non-monetary gaming formats through a lighter-touch registration and oversight regime.
Executives said companies were also seeking clarity on whether certain hybrid formats involving entry fees, virtual rewards, or tournament-based progression mechanisms could fall within the definition of online money games. Stakeholders are additionally seeking guidance on compliance timelines for user verification, grievance redressal systems, data localisation requirements, and mandatory disclosures for gaming platforms.
Some stakeholders also said the absence of a mechanism allowing companies to seek prior regulatory guidance before launching new gaming formats could create legal uncertainty and potential enforcement risks, particularly for platforms experimenting with skill-based competitive formats, fantasy mechanics, or reward-linked gameplay models.Legal experts said provisions governing the classification of online money games remain broadly worded and may require interpretative guidance from the Authority as implementation progresses.
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Ranjana Adhikari, Partner at Shardul Amarchand Mangaldas & Co., said the industry was seeking greater predictability under the new regime. She added that while the Act and Rules establish OGAI as a unified regulator, further guidance may be required on permissible monetisation models for lawful gaming categories.
Independent legal counsel Gowree Gokhale said the Rules are only an initial framework, and greater certainty will emerge through future directions and guidelines issued by the Authority.
