Government Extends Certificate of Validity for Online Games to 10 Years and Implements New Regulations
New Regulatory Framework for Online Gaming Industry Takes Shape
The Centre has announced the rollout of the Online Gaming Authority of India (OGAI), which will come into effect on May 1 under the Promotion and Regulation of Online Gaming Act, 2025. The new regulatory framework marks a significant shift in the government's approach to online gaming, introducing a light-touch regulatory approach that allows most non-real money games to operate without mandatory registration.
Key provisions of the revised rules include the extension of certification validity for online games from five years to 10 years. IT Secretary S. Krishnan explained that most games which are not money games can function without any obligation such as registration, which is now optional. The government has opted for a more flexible regulatory approach, giving ministries the flexibility to design their own schemes for promoting games.
The classification of online games will take place through three routes: suo motu by the authority, through applications from esports bodies, or via notification by the central government for specific social games. A 90-day timeline has been set for such determinations, allowing for a more efficient and streamlined process. Registration will, however, be required for certain notified games, particularly those with a large scale of participation or involving financial transactions.
Read also: Government Confirms No Changes to Tax Clearance Policy for International Travel
The new rules also introduce mandatory user safety features and a two-tier grievance redressal system for platforms. The composition of the authority has been expanded to six members, with the Ministry of Home Affairs added due to enforcement provisions in the parent law. The authority will have explicit powers such as data retention and periodic compliance reporting.
The government received feedback from around 2,500 stakeholders, including industry bodies, academia, and law firms. Suggestions ranged from narrowing the definition of online games to refining the authority's composition and classification process. Notably, provisions related to refunding user funds have been removed, as the issue has largely been addressed.
Comparison of Key Provisions
| Provisions | Current | Revised |
|---|---|---|
| Certification validity | 5 years | 10 years |
| Mandatory registration | Required for all games | Optional for most non-real money games |
| Classification routes | 1 (suo motu) | 3 (suo motu, applications from esports bodies, and central government notification) |
| Determination timeline | N/A | 90 days |
More in General
Government Confirms No Changes to Tax Clearance Policy for International Travel
Court Rules Father Liable for Support of Minor Child Regardless of Mother's Income or Personal Liabilities
Maharashtra's New Living Will Law: How ICU Decisions Affect Financial Planning
