Online gaming and e-sports have emerged as one of the fastest-growing sectors of India’s digital economy, creating significant legal and regulatory challenges relating to gambling regulation, consumer protection, data privacy, taxation, intermediary liability, and the constitutional distribution of legislative powers between the Union and the States. The enactment of the Promotion and Regulation of Online Gaming Act, 2025 (Act No. 32 of 2025) and the Promotion and Regulation of Online Gaming Rules, 2026 has fundamentally transformed the regulatory framework by prohibiting online money games irrespective of whether they involve skill or chance while establishing a statutory regime for the governance and promotion of e-sports and online social games. This study adopts a doctrinal and comparative legal research methodology through an examination of the Constitution of India, the Information Technology Act, 2000, the Digital Personal Data Protection Act, 2023, the Consumer Protection Act, 2019, the Promotion and Regulation of Online Gaming Act, 2025, the Promotion and Regulation of Online Gaming Rules, 2026, and leading judicial decisions concerning online gaming regulation and constitutional federalism. A comparative assessment of the regulatory frameworks of the United Kingdom and the United States is undertaken to identify international best practices relating to licensing, consumer protection, responsible gaming, regulatory oversight, and institutional governance. The study finds that India’s post-2026 framework represents a decisive shift from the traditional skill-versus-chance doctrine towards a statutory classification-based model that prioritises consumer welfare, public health, and regulatory certainty. It recommends strengthening cooperative federalism, enhancing regulatory coordination, improving transparency and algorithmic accountability of gaming platforms, reinforcing personal data protection, rationalising taxation, and developing a dedicated governance framework for e-sports to ensure a constitutionally sustainable, technologically responsive, and consumer-centric regulatory regime.