The PROG Rules present the most monumental change to India’s online gaming ecosystem in decades

India’s online gaming sector is entering a new regulatory phase with the introduction of the PROGA and PROG Rules, 2026, which establish a central framework governing the industry for the first time. The new rules are expected to significantly reshape how operators structure and offer online gaming products across the country.

In an exclusive interview with Yogonet, Vidushpat Singhania, Managing Partner at Krida Legal, discussed how the new framework reshapes classification, compliance, and operational standards for gaming companies, while also introducing new layers of regulatory oversight through the Online Gaming Authority of India.

He also explained the implications for real-money gaming, the rise of structured e-sports and social gaming models, and the compliance challenges operators will need to navigate as the rules come into force.

How significant are the PROG Rules, 2026, for India’s online gaming ecosystem? Do they bring clarity or create new uncertainties?

The PROGA and PROG Rules, 2026 (PROGR) present arguably the most monumental change to the Indian online gaming ecosystem ever since the industry picked up interest in recent decades.

While previously, there was confusion with respect to the legality of specific games and as to where they can be offered within India, with gaming, betting, and gambling being governed independently by each State Government, the PROGA and PROGR provide clarity in the sense that there is now a singular central legislation governing the entire gaming ecosystem in India. It also provides clarity by providing legislation that specifically tends to the online mode of gaming, which was a lacuna present in many of the existing state legislations.

However, as with every new legislation, there does exist a level of uncertainty, particularly with respect to how the legislation shall be implemented in practice. Whether the timelines laid down in the PROGR, for determination amongst other processes, can be adhered to, whether the long-term duration of the recognition granted to registered games provides ease of business or repeated regulatory scrutiny over time, all such questions granting uncertainty around the implementation of the legislation can only be answered in time.

What practical role do you expect the new Online Gaming Authority of India to play?

The new OGAl is expected to be a watchdog for the gaming industry, striving to actively prevent the promulgation of real money games in India, while providing requisite protections to promote e-sports and online social games.

As a modern supervisor operating in a digital environment, the OGAI is expected to stay abreast of the latest trends and developments in the gaming industry and to ensure that this rapidly growing sector is nurtured while actively addressing the illegal activities associated with gaming.

The rules introduce a ban on real-money gaming platforms. How broadly do you expect this to be interpreted, and what immediate impact could it have on the RMG segment?

The definition of “online money games” that covers all real-money gaming platforms, in essence, seeks to include any game that includes a deposit or stake made by the customer with the expectation of monetary or other enrichment. That is a broad definition by intention, so that any creative practices adopted by gaming entities, irrespective of the nature of the game, can be included within the ambit of an “online money game”.

This definition is expected to be interpreted widely, covering not only pure chance-based games but also popular skill-based formats such as online rummy, poker, and fantasy sports, effectively ending the earlier “skill vs chance” distinction.

The immediate impact on the RMG segment is likely to be severe, forcing many platforms to shut down cash-based operations, pivot to free-to-play social gaming models, face major revenue losses, and deal with uncertainties around user funds and refunds. Additionally, this pushes some activity toward unregulated offshore platforms in the short term.

There are other forms of revenue generation that are permitted, such as subscription-based models or through in-app purchases that do not alter the participant’s chances of winning. However, most popular games in India followed the traditional RMG path of offering winnings to participants who entered into paid contests to be eligible for such rewards based on their performances in-game.

The industry, therefore, needs to adapt to the legislative intent and identify legal means of revenue generation that were relatively uncommon previously. The immediate impact of the PROGA and PROGR can be witnessed in this space, as traditional models cease to be legal for operation and offering in India.

The framework introduces a formal game classification test. What level of compliance complexity should companies, particularly those with hybrid or borderline models, anticipate, and within what timelines?

The PROGR under Rule 9 provide factors for determination therein, creating a formal test for classification of online games. The factors include considering whether any monetary payment is made, and whether there are any expectations of monetary enrichment based on such payment. The manner in which the payment is used, the structure and operation of the revenue model and the structure of the rewards earned in the game may hold benefits outside the game.

Considering such factors, companies offering hybrid models should expect higher compliance complexity as the manner in which payments are utilised and the real-world impact of any rewards earned are important factors that will be analysed by the OGAl. The OGAl also holds the power to seek an external expert or technical evaluation in the process of determination.

Games with hybrid or borderline models must, therefore, ensure that the payment made is utilised in the manner permitted, that is, as fees for participation, subscription, administrative costs or towards a reward for a performance-based prize. The reward shouldn’t be like winning from any form of stake, bet, or wager.

In terms of procedure, companies intending to offer hybrid games as esports must proactively submit a formal application. For other categories, determination is required only upon direction from the OGAl or if the game falls under specific social gaming categories notified by the Central Government. While companies are advised to align with PROGA and PROGR standards immediately, the formal determination process is designed to be completed within 90 days from the receipt of a fully completed application.

From May 1 onwards, what are the immediate compliance priorities for gaming companies operating in India?

Given that the PROGA and PROGR stand officially enforced as of May 1st, 2026, companies must immediately ensure operational compliance. All real money gaming must come to an immediate halt, as any continuing operations will be in violation of the PROGA and may attract hefty penalties.

If an online game intends to operate as an e-sport, an application should be made to seek a determination of the same. Stakeholders must also submit applications in the event that their games fall under a notified category or have been asked to undergo determination by the OGAI.

Online gaming operators are also required to integrate basic user safety features such as age verification, proper KYC measures and set up internal grievance redressal mechanisms proactively to avoid intervention from the OGAl.

The rules mandate age-gating, parental controls, and grievance redressal mechanisms. How challenging will these be for operators to implement effectively at scale?

The mentioned user safety features, such as proper age verification or age-gating, time restrictions, parental control, grievance redressal, and counselling support, present a significant challenge for operators due to the technical and procedural rigour required by the new framework.

Under Rule 2(1)(i), these “user safety features” must be tailored to the specific risks of each game to protect users from financial, psychological, social, security, or content-related harms.

Implementing such protections might require specialised third-party providers or establishing internal administrative frameworks, both of which require significant resources. Maintaining these systems entails substantial administrative overhead to ensure compliance, particularly since the OGAl possesses the authority to issue corrective orders or remedial measures based on user grievances. Operators must also ensure strict compliance with data retention mandates, including the storage of traffic data and metadata on computer resources located within India.

Under Rule 14(3), non-compliance with the prescribed safety standards or failure to adhere to OGAl’s directions and codes of practice constitutes a direct ground for the suspension or cancellation of a game’s Certificate of Registration. Consequently, operators must build strong and responsive customer support systems, shifting their focus from purely technical operations to broader service-oriented compliance.

Entities that previously employed responsible gaming standards are likely to have a lot of compliance in place, particularly with respect to age-gating and KYC protocol.
Adapting their existing systems to the norms mandated by the PROGA and PROGR will likely require some degree of overhaul, but would present a considerably lesser challenge.

MeitY has described the framework as “regulation-light” for non-money games. Do you think it strikes the right balance between industry growth and user protection?

The current framework strikes a balance by making it easier for legitimate online games such as e-sports and online social games to grow while keeping users safe from potential harm. It may be considered regulation-light, considering operators are provided long-term stability in the form of a registration valid for 10 years once compliance requirements are met to the satisfaction of the OGAI.

The initial compliance requirements do remain robust, such as local data storage, inclusion of user safety features and grievance redressal mechanisms. The OGAl also possesses the power to audit game mechanics and financial models to ensure illegal online money games are not offered in any form.

With a structured mechanism for grievance redressal, established timelines and structures, the framework does provide a legitimate way to ensure platforms remain responsible for user wellbeing and do not allow “betting”. Clarity regarding the legality of operations does provide significant scope for industry growth for e-sports and online social games. Therefore, user welfare and ease of operability appear to have been accounted for with the newly enacted legislation.

Beyond the same, the fact that online social games do not have a mandatory requirement for registration also increases the ease of entering business in the market, and opens a window for investment and operability without significant regulatory hurdles.

How do you expect these rules to reshape the competitive landscape in India’s gaming sector over the next 12-24 months?

Over the next 12-24 months, these rules are expected to formalise India’s gaming sector by clearly separating legitimate e-sports and social games from prohibited “online money games”.

The introduction of a Certificate of Registration valid for ten years offers long-term stability that will probably attract significant domestic and foreign investment, as developers now have a predictable regulatory framework, especially in the e-sports market.

However, the landscape will become more challenging for smaller operators due to the technical and administrative costs associated with mandatory user safety features. The erstwhile robust real-money gaming sector will face a definite end, while global investments may now be attracted to operators developing e-sports and social games.

This transition will likely lead to market consolidation, where larger entities capable of maintaining rigorous grievance redressal systems and technical compliance thrive through offering e-sports and social games, while borderline models are forced to either adapt or exit the market.