ED Cracks Down on Real-Money Gaming Platforms: ₹505 Crore Frozen Linked to WinZO; Pocket52 & Gameskraft Under Scanner

The Enforcement Directorate (ED) has escalated its crackdown on illegal online real-money gaming platforms, freezing over ₹505 crore connected to WinZO Games Pvt. Ltd. following nationwide search operations carried out between November 18 and 22 under the Prevention of Money Laundering Act (PMLA), 2002.

WinZO: Assets Frozen, Global Operations Questioned

• The ED’s Bengaluru Zonal Office searched four locations in Delhi and Gurgaon, uncovering what it called serious irregularities in WinZO’s operations.

• Authorities froze bank balances, fixed deposits, bonds, and mutual funds under Section 17(1A) of PMLA.

• The case stems from multiple FIRs alleging:

  • Cheating users

  • Blocking withdrawals

  • Misusing PAN/KYC data

  • Financial losses due to manipulated gaming practices

• The ED claims WinZO:

  • Continued offering real-money gaming services in markets like Brazil, the US, and Germany even after India’s nationwide ban from August 22, 2025

  • Retained ₹43 crore without refunding players

  • Used software bots posing as real opponents to manipulate outcomes and generate profits

  • Restricted and delayed withdrawals to users

Suspected Cross-Border Laundering

Investigators say roughly USD 55 million (₹489.9 crore) was traced to WinZO US Inc., an entity allegedly controlled entirely from India with no real overseas operations.
The ED suspects layering of funds under the pretext of foreign investment.

Pocket52 & Gameskraft Also Raided

Parallel search operations targeted:

• Nirdesa Networks Pvt. Ltd. (Pocket52)

• Gameskraft Technologies Pvt. Ltd.

• Residences of company directors

Triggered by a Karnataka Police FIR, allegations include:

• Rigged or manipulated gameplay

• Player collusion

• Removal of transparency features (e.g., hand histories)

• Technical malfunctions favouring the house

• Delayed or blocked withdrawals

• Cheating resulting in a user losing over ₹3 crore

The ED seized:

• Mobile phones

• Laptops

• Cloned digital records from Gameskraft’s premises

Escrow accounts worth ₹18.57 crore were frozen, part of more than ₹30 crore that investigators say was unlawfully retained even after the real-money gaming ban under the Promotion and Regulation of Online Gaming (PROG) Act.

Government’s Intensifying Crackdown

The enforcement actions highlight the government’s growing focus on:

• Algorithmic rigging

• Player cheating

• KYC fraud

• Cross-border fund diversion

• Illegal gaming operations continuing despite the national ban

Investigations across all entities remain ongoing.