The Enforcement Directorate (ED) said on November 24 that it has frozen assets worth over Rs 520 crore linked to real money gaming operators WinZO and Gameskraft, following a five day probe conducted from November 18 to November 22, and added that further investigation is underway.
What assets of WinZO and Gameskraft were frozen by ED and which locations were raided?
According to the agency, about Rs 505 crore linked to WinZO has been frozen in the form of bank balances, bonds, fixed deposits, and mutual funds under Section 17 (1A) of the Prevention of Money Laundering Act (PMLA), 2002, while eight bank accounts holding around Rs 18.75 crore tied to Gameskraft and Nirdesa Networks (Pocket52) have also been frozen.
The ED’s Bengaluru zonal office carried out search operations at four WinZO locations in Delhi and Gurgaon, along with multiple premises linked to Gameskraft and Nirdesa Networks (Pocket52) across Bengaluru and Gurugram.
On November 18, Moneycontrol reported that ED had raided 11 locations linked to online gaming operators Gameskraft and WinZO including corporate offices of the companies and the residences of their top executives.
Why did ED start the investigation against WinZO and Gameskraft?
ED stated it initiated the investigation based on FIRs filed against WinZO on the grounds of cheating, blocking of accounts, impersonation, and misuse of PAN. The complainants also alleged that their KYC details were misused and that they suffered substantial losses due to "fraudulent activities" and "cheating" by WinZO and others.
Meanwhile, the probe against Gameskraft was started on the basis of FIR registered by Karnataka Police against online poker platform Pocket52, operated by Gameskraft-owned Nirdesa Networks, over accusations of large-scale fraud involving manipulated game outcomes, player collusion, technical glitches, withdrawal restrictions, and lack of transparency.
The complainant alleged that they lost over Rs 3 Crore due to "systemic cheating". Authorities and users also alleged the platform "rigged its algorithms" and "promoted unfair play". Pocket52 is under ongoing investigation for cheating and regulatory violations, ED stated.
In May, Gameskraft stated that it is pausing the operations of Pocket52, as part of a "broader plan to reassess and reimagine its long-term approach."
Read: Former Gameskraft CFO diverted company funds to F&O trading, incurring Rs 250 crore losses, FIR says
What did ED's investigation into WinZO reveal?
ED's investigation found that WinZO was engaged in "criminal activities and unscrupulous practices i.e. customers were made to play with algorithms or software without being made aware of the fact that they are playing with software or algorithms and not with humans in real money games," it said.
The probe also revealed that WinZO had prevented or limited withdrawals of monies held by the customers in their wallets, and that about Rs 43 crore is still being held by the company without being refunded to players, despite a government ban on real money games in place since August 22, the agency noted.
That said, the online gaming law is yet to come into effect in the country, and the draft rules released on October 2 proposed a 180 day window for gaming companies to repay funds owed to users once the law becomes operational.
Jay Sayta, a technology and gaming lawyer, said that ED's statement that non-refund of customer money despite the enactment of PROGA (Promotion and Regulation of Online Gaming Act, 2025) is grounds for investigation or further action, including freezing of funds, is "flawed, misconceived, and baseless."
"The draft rules under PROGA and Union minister Ashwini Vaishnaw's assurances make it clear that customers will be given a window to seek refund of funds or pending balances anytime," he said.
What did WinZO say regarding the ED probe?
In a statement, WinZO said that the company has been "cooperating fully with the investigating agency and will continue to support the process"
"Fairness and transparency are core to how WinZO designs and operates its platform. Our focus remains on protecting our users and ensuring a secure, trustworthy experience. WinZO remains fully compliant with all applicable laws," the statement added.
What issues did the ED find in WinZO’s overseas operations?
Started by Paavan Nanda and Saumya Singh Rathore, WinZO offers over 100 games in 15 Indian languages developed by third-party game developers from around the world on its platform. It has raised a total of $100 million across multiple financing rounds from investors such as Griffin Gaming Partners, Maker’s Fund, Courtside, and Kalaari Capital until now.
The company, along with other industry players, had discontinued its real-money gaming business in India in August after the government introduced an online gaming law that placed a blanket ban on online money games, where a user makes a deposit, directly or indirectly, with the expectation of earning winnings on that deposit.
The Delhi based startup has also expanded its platform internationally, launching in the United States in August 2025 and in Brazil in October 2023.
The ED, however, noted that its investigation found WinZO operating real money games in markets such as Brazil, the United States and Germany from India using the same platform as its Indian entity.
According to the agency, about $55 million (Rs 489.90 crore) has been parked in a bank account in the United States held in the name of WinZO US Inc., which the ED described as a shell company, since all operations, day-to-day activities, and bank account management are handled from India.
What did ED's investigation against Gameskraft and Pocket52 reveal?
ED stated that during the investigation under PMLA and the subsequent search proceedings, it found that many users had raised complaints or concerns about manipulation, lack of transparency and intentional exploitation, alleging that the company failed to compensate them for their losses.
The agency said it seized incriminating devices, including mobile phones and laptops, from the premises of the company’s directors and founders, and collected extensive data backups from Gameskraft offices.
ED also noted that more than Rs 30 crore is still held by the company in their escrow accounts without refunding to the players, despite the government's ban on real-money games.
Further, eight escrow bank accounts used for payouts and maintained with various banks, holding a balance of about Rs 18.57 crore, have been frozen under Section 17(1A) of the PMLA, 2002. The ED said these accounts are suspected to contain proceeds from alleged criminal activity parked by the accused entities, including Nirdesa Networks and Pocket52.
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