“We remain fully compliant”: WinZO on ED search operations, ₹505 crore freeze

The Enforcement Directorate (ED) has intensified its action against online real-money gaming platforms, freezing more than ₹505 crore linked to WinZO Games Pvt. Ltd. following multi-city search operations conducted between November 18 and 22 under the Prevention of Money Laundering Act (PMLA), 2002.

Amid the widening investigation, WinZO issued a statement stressing that it has been cooperating with authorities and remains committed to fairness and legal compliance. “We have 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 company said.

According to the ED, its Bengaluru Zonal Office conducted coordinated searches at four locations in Delhi and Gurgaon as part of its probe into the alleged laundering of proceeds generated through the WinZO gaming platform. The agency said it froze various assets—including bank balances, fixed deposits, bonds, and mutual funds—under Section 17(1A) of PMLA.

The case originates from multiple FIRs that accuse the platform of cheating users, blocking player accounts, misusing PAN details, manipulating KYC data, and causing financial losses through deceitful practices. The ED alleges that WinZO operated real-money gaming services for international markets such as Brazil, the US and Germany using the same infrastructure as its Indian entity. Despite the nationwide ban on real-money gaming enforced from August 22, 2025, investigators claim the company retained around ₹43 crore instead of refunding players.

The agency also alleges algorithmic manipulation, stating that players were led to believe they were competing with real opponents when software-driven bots were used instead. According to investigators, this mechanism generated proceeds of crime from bets placed and lost by unsuspecting players, who were not informed about algorithmic interventions. The ED further claims that customer withdrawals were restricted or delayed.

Investigators say they uncovered suspected cross-border fund diversion as well. WinZO’s global operations were managed from India, and the agency said about USD 55 million (₹489.9 crore) was found in accounts of WinZO US Inc., described as having no standalone operational presence abroad. Day-to-day functions and account activities were allegedly controlled from India, raising concerns over layering of funds under the guise of overseas investment.

Pocket52, Gameskraft Also Under ED Lens

In parallel, the ED carried out searches in Bengaluru and Gurugram targeting Nirdesa Networks Pvt. Ltd. (operator of Pocket52), Gameskraft Technologies Pvt. Ltd., and residences of their directors. The action was triggered by a Karnataka Police FIR alleging rigged gameplay, manipulated outcomes, player collusion, withdrawal delays, technical malfunctions, and removal of transparency tools such as hand-history features on Pocket52. The complainant reported losing over ₹3 crore, alleging systematic cheating and breaches of responsible gaming norms.

During the operations, ED officials seized mobile devices, laptops, and cloned digital records from Gameskraft’s premises to investigate suspected manipulation and user exploitation. Despite the real-money gaming ban under the Promotion and Regulation of Online Gaming (PROG) Act, authorities say Pocket52 and related entities continued holding more than ₹30 crore in escrow accounts without refunding users. The ED has frozen eight escrow accounts containing approximately ₹18.57 crore.

The agency said further investigation is underway across all cases. The recent enforcement actions reflect the government’s sharpened focus on illegal online gaming platforms amid rising complaints of algorithmic rigging, cheating, KYC fraud, and diversion of funds.