ED Freezes Rs 523 Crore in Assets of Online Gaming Firms WinZO and Gameskraft Following Money Laundering Investigation

The Enforcement Directorate (ED) has frozen approximately Rs 523 crore in assets belonging to online gaming companies WinZO and Gameskraft. According to the federal probe agency, these platforms allegedly retained substantial funds that should have been returned to players following India's recent ban on real-money gaming services.

Between November 18 and 22, the ED conducted multiple searches across Delhi, Bengaluru, and Gurugram as part of a money laundering investigation targeting the parent companies of these gaming platforms: Nirdesa Networks Pvt. Ltd. (NNPL), Gameskraft Technologies Pvt. Ltd. (GTPL), and WinZO Games Pvt. Ltd., along with their promoters.

Both companies provided online real-money gaming services to users before the ban. The ED has accused WinZO of engaging in "criminal activities and unscrupulous practices" by making customers play against algorithms without proper disclosure that they were competing against software rather than actual humans in real-money games.

In response to the investigation, a WinZO spokesperson stated that the company is "cooperating fully with the investigating agency and will continue to support the process."

According to the ED statement, WinZO operated real-money games (RMGs) internationally in countries like Brazil, the United States, and Germany from its India-based platform. Despite the Union government's ban on RMGs (effective from August 22, 2025), the company allegedly continues to hold approximately Rs 43 crore without refunding these amounts to players and customers.

The ED has frozen assets worth about Rs 505 crore allegedly "possessed" by WinZO Games under the Prevention of Money Laundering Act (PMLA). These assets are held in various forms including bank accounts, bonds, fixed deposits, and mutual funds.

WinZO defended its operations in a statement, saying: "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." The company maintains that it remains fully compliant with applicable laws.

Similar allegations have been made against Gameskraft, which offered online money gaming services under the brand Pocket52.com. The ED claims that even after the implementation of the Promotion and Regulation of Online Gaming Act, 2025, Gameskraft continued to hold over Rs 30 crore in escrow accounts without refunding these amounts to customers.

The agency has frozen eight bank accounts (escrow accounts maintained with various banks for payouts) holding deposits worth Rs 18.57 crore in its investigation against Gameskraft. These funds are alleged to be proceeds of crime parked by the accused entities, including NNPL and Pocket52.

The ED also accuses WinZO of restricting withdrawals of money held in customer wallets and generating illicit funds through the "unscrupulous" use of algorithms and software in games where real customers placed and lost bets.

During the investigation, the ED discovered that WinZO's global operations were conducted under a single application hosted from an India-based platform. The agency claims that funds from the Indian entity were diverted to the United States and Singapore under the pretense of overseas investments.

According to the ED, approximately USD 55 million (around Rs 489.90 crore) has been parked in a WinZO bank account in the US, which the agency describes as a "shell company" since all operations, day-to-day business activities, and management of bank accounts were allegedly conducted from India.