The Directorate of Enforcement (ED) raided three online gaming companies in Bengaluru, Delhi, and Gurugram between November 18 and 22, and froze accounts with over ₹523 crore.
Following raids on WinZO Games Pvt. Ltd. that operated real-money gaming services through the WinZO app, the ED froze ₹505 crore worth of suspected proceeds of crime, including bank balances, bonds, fixed deposits, and mutual funds, under the Prevention of Money Laundering Act (PMLA), 2002.
The ED said that it found that the WinZO continued operating real-money games in foreign markets such as the U.S., Brazil, and Germany, using the same platform as India- even after the nationwide ban on RMGs took effect on August 22, 2025. The company reportedly held ₹43 crore belonging to players without refunding.
The probe further revealed that the WinZO allowed customers to unknowingly play against computer algorithms rather than real players, while also restricting withdrawals, the ED said. The ED alleges that the company earned proceeds of crime by exploiting users through these practices.
A probe has uncovered diversion of Indian funds to overseas entities. Around ₹489.90 crore was traced to a U.S. bank account operated under the WinZO U.S. Inc., which officials described as a shell company controlled from India.
In another case, following raids on premises linked to Nirdesa Networks Pvt. Ltd. (NNPL), Gameskraft Technologies Pvt. Ltd. (GTPL), the ED froze eight escrow bank accounts holding approximately ₹18.57 crore, suspected to be proceeds of crime.
The ED initiated the probe based on an FIR filed by the Karnataka Police alleging large-scale fraud by the Pocket52, an online gaming platform operated by the NNPL. The complaint accused the platform of manipulating game outcomes, player collusion, technical glitches, restricting withdrawals, and suppressing transparency features like hand history.
One complainant reported losing over ₹3 crore, claiming systematic cheating and irresponsible gaming practices.
During the PMLA investigation, the ED claimed to have found numerous user complaints pointing to manipulation and exploitation by the platform. The officials seized mobile phones, laptops, and other electronic devices from the directors and founders, along with voluminous data backups from the GTPL. Despite the ban on real-money games under the Promotion and Regulation of Online Gaming (PROG) Act, 2025, enforced on August 22, 2025, the company reportedly retained over ₹30 crore in escrow accounts without refunding players, the ED alleged.
Published – November 24, 2025 09:23 pm IST
