Banks must block payments to real-money games under new Online Gaming Rules, 2026

The Central government has mandated that banks and financial intermediaries suspend transactions linked to certain online games, if directed by the regulator under the newly notified Online Gaming Rules, 2026..The Rules, notified by the Ministry of Electronics and Information Technology (MEITY) on April 22, will come into force from May 1, 2026..At the core of the framework is the creation of the Online Gaming Authority of India, which will determine whether an online game qualifies as a “real money game” based on factors such as user deposits, expectation of winnings and wagering elements..The Authority will comprise senior officers from key ministries, including:Additional Secretary, Ministry of Electronics and Information Technology or such other officer not below the rank of Joint Secretary nominated by the Secretary, Ministry of Electronics and Information Technology, Chairperson, ex officio;Joint Secretary, Ministry of Home AffairsJoint Secretary, Department of Financial Services, Ministry of FinanceJoint Secretary, Ministry of Information and BroadcastingJoint Secretary, Ministry of Youth Affairs and SportsJoint Secretary, Department of Legal Affairs, Ministry of Law and JusticeAll members will serve in an ex officio capacity, nominated by their respective ministries..The Central government may appoint a Secretary to the Authority from among officers of the rank of Director or above in MEITY, with experience in information technology.The Authority will be headquartered in Delhi and will function as an attached office of MEITY..The Rules emphasise a digital-first functioning, allowing proceedings to be conducted without requiring physical presence and enabling the adoption of techno-legal processes.The Chairperson will control administrative matters, convene meetings and may authorise members or officers to examine applications, complaints or references. Decisions of the Authority will be taken by majority, with the Chairperson having a casting vote in case of a tie.The Chairperson is also empowered to invite subject-matter experts to assist in the discharge of functions. Further, the Authority may operate through circulation of matters and pass decisions without formal meetings where required..One of the most striking provisions empowers the Authority to direct banks, financial institutions and payment intermediaries to halt transactions linked to games classified as real money games.Upon such direction, intermediaries must:Suspend or block payment flows; andProvide necessary information and assistance to the Authority.This effectively gives the regulator a financial enforcement tool, allowing it to curb operations of non-compliant gaming platforms.Orders of the Authority can be appealed before the Secretary, MEITY within 30 days..The Rules introduce a formal “determination” process. The Authority will examine whether a game involves:Entry fees or depositsMonetary rewards or winningsBetting or staking mechanismsBased on this, games will be classified as real money games, online social games, or e-sports. The process is to be completed within 90 days..Certain games must be registered, especially where financial risks or user harm concerns are present. Notably, real money games are barred from being recognised as e-sports. Registered games will receive certificates valid for up to ten years..The Online Gaming (Promotion and Regulation) Act, 2025 adopts a prohibitory model towards real-money gaming, going beyond mere regulation.The statute bars the offering, advertising or facilitation of online money games, which are defined as games involving stakes or monetary rewards, regardless of whether they are based on skill or chance.In effect, the law draws a hard line: while promoting e-sports and online social gaming, it outlaws real-money gaming as a category, shifting the sector from a fragmented state-regulated regime to a centralised prohibition backed by enforcement powers..Challenges to the Act are currrently pending before the Supreme Court..[Read Rules]