ED raids continue on Gameskraft, WinZO; Federations and other gaming firms under scanner

The Enforcement Directorate’s crackdown on the online gaming sector escalated on Wednesday as raids on Gameskraft and WinZO continued for a second consecutive day. The operation, which began on Tuesday, spanned 11 locations across Bengaluru, Delhi, and Gurugram, signaling a widening investigation into alleged money laundering, cheating, and irregularities.

Sources confirmed that ED officials questioned employees, founders, and senior executives about the role of gaming federations, particularly regarding certificates issued to gaming companies for opening bank accounts. The officials also questioned about Random Number Generator (RNG) certification issued to gaming companies. Officials are also probing whether these federations facilitated any structuring that may have enabled financial irregularities.

While the ED has not officially named additional entities under investigation, a senior source indicated that complaints against multiple other gaming firms have already placed them under the agency’s scanner. It remains unclear whether the probe will expand further, but insiders believe more companies could soon face scrutiny.

Despite cooperating with government authorities, several stakeholders expressed shock over the scale and timing of the raids. One industry representative said the actions were “highly unreasonable,” adding that the enforcement drive “even before PROGA 2025 has been notified, is being used to harass gaming firms over issues the officials themselves seem unclear about, especially around algorithms.”

The officials have seized electronic evidences and cloned data from multiple gadgets. The ED officials allegedly also faced non co-operation during the raids with gaming firms allegedly not divulging adequate information and witholding employees to reach office.

According to the ED, searches were conducted at the corporate offices and residences of CEOs, COOs, and CFOs of the concerned companies. The Bengaluru zonal office, which is leading the operation, alleges that the raids relate to cheating and money laundering through cryptocurrency. Officials said they found evidence of promoters owning crypto wallets, which they claim indicates possible laundering activity.

The raids on Gameskraft are also being allegedly in connection to Pocket52, an online poker platform the company owns. Pocket52 had recently ceased operations by July 2025, citing intense regulatory pressures and the 28% GST rate on real-money gaming.

Gameskraft itself is dealing with internal turmoil after its former CFO, Ramesh Prabhu, was accused of siphoning off ₹270.43 crore over nearly five years. An FIR has been filed following the company’s complaint.

ED officials also pointed to FIRs filed by individuals alleging manipulation of gaming algorithms—claims that place additional scrutiny on how gaming outcomes are determined.

Storyboard18 reached out to both Gameskraft and WinZO for comments, but company spokespersons did not respond.

With raids stretching late into Wednesday night and several firms reportedly under preliminary examination, the ED’s ongoing operation signals an aggressive phase in the government’s tightening oversight of India’s online gaming ecosystem.