Breaking: ₹505 cr frozen as ED probes WinZO; Pocket52, Gameskraft raided over fraud complaints

The Enforcement Directorate (ED) has intensified its crackdown on online real-money gaming (RMG) platforms, conducting extensive search operations across Delhi, Gurgaon, and Bengaluru between November 18 and 22, 2025, under the Prevention of Money Laundering Act (PMLA), 2002.

The action has resulted in the freezing of more than ₹505 crore linked to WinZO Games Pvt. Ltd., in addition to seizures and account freezes connected to Pocket52 operator Nirdesa Networks Pvt. Ltd. (NNPL) and Gameskraft Technologies Pvt. Ltd. (GTPL).

According to the ED, its Bengaluru Zonal Office conducted coordinated searches at four locations in Delhi and Gurgaon as part of an ongoing probe against WinZO Games Pvt. Ltd., which operates the WinZO real-money gaming app. The agency froze proceeds of crime valued at about ₹505 crore, including bank balances, fixed deposits, bonds and mutual funds, under Section 17(1A) of PMLA.

The money laundering case stems from multiple FIRs alleging cheating, blocking of player accounts, impersonation, misuse of PAN details, and manipulation of KYC information. Complainants alleged that users suffered financial losses due to fraudulent practices and systematic deceit.

The ED’s investigation found that WinZO was operating RMG services for markets including Brazil, the US, and Germany using the same platform as the Indian entity. Even after the Union government banned real-money games effective August 22, 2025, the company allegedly retained about ₹43 crore without refunding players.

The probe further revealed alleged manipulation involving algorithms and automated bots. Customers were reportedly made to believe they were competing against real players, whereas the system allegedly deployed software-driven opponents. The ED said this allowed WinZO to generate proceeds of crime from bets placed and lost by players who were not informed of the use of algorithms in gameplay. The company also allegedly restricted or delayed customer withdrawals.

The agency additionally uncovered suspected diversion of funds abroad. Investigators found that WinZO’s global operations—including hosting and running all gaming formats—were managed from India. Funds amounting to USD 55 million (₹489.9 crore) were identified in accounts of WinZO US Inc., which the ED described as a shell entity with no independent operational presence outside India. Day-to-day activities and account operations were allegedly handled from India, raising suspicion of layering and cross-border diversion under the guise of overseas investment.

Pocket52, Gameskraft Face ED Action Amid Complaints of Rigged Games and Fraud

Parallel to the WinZO probe, the ED launched searches across Bengaluru and Gurugram targeting NNPL (operator of Pocket52), GTPL, and residences of directors and associated individuals. The action followed an FIR by Karnataka Police alleging a series of fraudulent practices on Pocket52, including manipulated outcomes, algorithmic rigging, player collusion, withdrawal restrictions, technical malfunctions, and removal of transparency features such as hand-history records.

The complainant in the FIR reported losses exceeding ₹3 crore and accused the platform of systematically cheating users while ignoring responsible gaming protocols. Authorities and users alleged that Pocket52 rigged its algorithms to promote unfair gameplay, while the leadership of NNPL and its parent entities continued to attract scrutiny.

During search operations, the ED seized mobile phones, laptops, and digital devices belonging to company executives. Investigators also cloned substantial data from GTPL’s premises to probe suspected manipulation and user exploitation. Despite the nationwide ban on RMGs under the Promotion and Regulation of Online Gaming (PROG) Act, enacted on August 22, 2025, Pocket52 and associated entities allegedly continued holding more than ₹30 crore in escrow accounts without returning funds to users.

The agency froze eight escrow accounts containing around ₹18.57 crore held by NNPL, Pocket52, and linked entities, suspecting them to be repositories of proceeds of crime under PMLA.

The ED said further investigation is ongoing in both cases. The latest actions underscore the government’s aggressive stance against illegal real-money gaming platforms, particularly those accused of algorithmic rigging, cheating, KYC fraud, and diversion of funds amid tightening regulatory oversight under the new online gaming law.