On April 13, the gaming sector took a hit, with the Shenzhen Component Index plummeting 4.23% at midday. Individual stocks didn’t fare much better, with Iceberg Network tumbling over 12%, and other major players like Giant Network, Three Seven Interactive, and Jiayou Network also taking a beating.
A recent rumor has been making the rounds in the industry, claiming that new regulations would ban games featuring “palace struggles, official struggles, and card games.” This has sparked widespread concern among market players and industry insiders, with some gaming stocks experiencing short-term volatility.
However, according to sources from 21st Century Business Herald, the alleged “new regulations” are actually just a rehashing of old rules from 2019.
The original regulations were announced on April 10, 2019, at a national conference on game management, where officials emphasized the need to strictly control the number of game licenses issued and improve content quality. Specifically, they stated that games featuring “palace struggles, official struggles, and card games” would not be approved.
The goal of these regulations was to regulate the industry, address issues like license trading and low-quality games, and encourage more high-quality, innovative content.These requirements were clearly outlined in meeting minutes and official interpretations at the time, and have been consistently communicated to the industry through various channels.
In addition to the regulations on game content, the conference also announced plans to restart the game license application process, which had been suspended since February 2019.They also emphasized the need to strengthen regulation of small program games, requiring all paid programs to obtain a license before going online.
A veteran game industry insider in Shenzhen told the media that the current regulations have been in place since 2019, and there have been no new developments in the industry recently. “The overall tone of the industry is still positive and optimistic.”
In practice, card games and palace struggles have always been subject to strict review due to their potential for gambling and feudalistic content.
According to the State Administration of Press, Publication, Radio, Film and Television, the core standards for game license review are based on the “Publishing Management Regulations” and the “Network Publishing Service Management Regulations,” with a focus on content value, anti-addiction measures, operational compliance, and qualification requirements.
In the first quarter of 2026, domestic network game licenses were issued normally, with a focus on casual, intelligent, traditional cultural, and youth-friendly games.The review guidelines continued to emphasize “supporting the good and limiting the bad, encouraging innovation,” with no significant reduction in the number of licenses issued or a one-size-fits-all approach to regulation.
As of the end of March, a total of 467 game licenses had been issued in the first quarter of 2026, including 453 domestic and 14 imported games.Mobile games accounted for over 90% of the total, with a significant increase in the proportion of casual, intelligent, and traditional cultural games.
According to industry statistics, the approval rate for low-quality games in 2026 was less than 10%, while traditional cultural and original gameplay games saw a significant increase in approval rates.For example, games like “Mountain and Sea Small Teahouse” and “Grain’s Small People’s Country” were approved in March due to their incorporation of traditional cultural elements and innovative gameplay.
In 2026, the regulatory authorities have increased their efforts to crack down on illegal activities, with the “Network Game Management Regulations (Draft for Soliciting Opinions)” outlining multiple penalty standards and implementing a “zero tolerance” policy.
For example, operating without a license can result in the confiscation of all illegal income, with fines ranging from 5 to 10 times the amount of the illegal income.Violations of the regulations can result in fines of up to 50,000 yuan, with serious cases resulting in the revocation of licenses and a ban on applying for new licenses for three years.
At the same time, the State Administration of Press, Publication, Radio, Film and Television has adopted a multi-mode approach to regulation, implementing comprehensive management of all network games, including small programs and H5 games, with no exceptions.According to publicly available administrative penalty cases from Fuzhou and Changsha in early 2026, multiple small and medium-sized game companies were fined and shut down for operating without licenses, highlighting the “zero tolerance, full coverage, and top-level penalty” approach to regulation.
