Game-based learning (GBL) has been widely recognised in research, and evidently benefited for learners. However, what GBL is perceived by teachers and learners has been a concern that might impact on quality of teaching and learning in the GBL environment. Game-based pedagogy meticulously designed from a teacher's perspective was regarded as harping on the same string without fun by learners. This paper aims to explore games literacy capabilities in supporting teachers to implement GBL that meets learners’ needs and expectations. Semi-structured interviews and surveys with experienced teachers of GBL and experts in the relevant field were conducted, followed by an Analytic Hierarchy Process seeking perceptions of a group of academics and researchers. Findings suggested five key capabilities in game literacy required by teachers in implementing GBL. They are (1) basic games literacy, (2) high-level games literacy, (3) instructional design for GBL, (4) organisation and management for GBL, and (S) evaluation of GBL. Amongst the five, instructional design for GBL and high-level games literacy were rated highly impacting on the quality of teaching. Based on the findings, aiming at informing teacher education and professional development, we proposed a framework providing a guidance to improve game-based design and pedagogical practices for teachers in the implementation of GBL in their classrooms. It concludes that teachers’ capabilities in games literacy require specific attention to instructional design – that demands a thought-provoking process for GBL.