The Enforcement Directorate (ED) launched an intense crackdown on India’s real-money gaming (RMG) industry between November 18 and November 22. The agency carried out coordinated search operations across Delhi, Gurugram, and Bengaluru under the Prevention of Money Laundering Act (PMLA). Investigators targeted two major clusters of companies: WinZO Games Pvt Ltd and Pocket52 operator Nirdesa Networks along with Gameskraft Technologies. The searches revealed large-scale financial irregularities, alleged manipulation of gaming systems, and suspected diversion of funds.
ED Expands Probe Into WinZO Games
The ED widened its investigation into WinZO after multiple FIRs triggered suspicion of cheating, KYC misuse, account impersonation, and unauthorised withdrawals. Several users claimed that they lost money because the platform allegedly manipulated gameplay and blocked access to their accounts. The agency responded by conducting extensive searches and examining financial records, user data, and cross-border payment flows.
During the raids, the ED froze ₹505 crore, describing it as suspected proceeds of crime. The frozen assets include bank deposits, balances, mutual fund holdings, and corporate bonds. The agency invoked PMLA Section 17(1A) to restrict movement of these funds, and investigators claimed that they uncovered clear patterns that indicated laundering activity.
According to the agency, WinZO continued to offer real-money gaming to users in the United States, Brazil, and Germany even after the Indian government imposed a national ban on RMGs on August 22, 2025. Officials emphasised that the continued servicing of foreign users from Indian servers violated the new law and raised concerns around revenue reporting and compliance.
User complaints also influenced the direction of the investigation. Many players alleged that the platform misled them through algorithm-driven gameplay. They believed they competed with real players, but investigators now claim that the system often matched users against automated opponents designed to influence game outcomes.
The ED also flagged concerns around ₹43 crore in unrefunded user balances. According to officials, WinZO left these funds unsettled despite multiple user requests. The agency traced several internal transfers and discovered large outflows from the Indian entity to related companies abroad. Investigators claimed that WinZO moved significant amounts of money to the US and Singapore, raising red flags about the purpose of these transfers.
In its statement, the ED specified that it tracked $55 million (₹489.9 crore) parked in a US bank account linked to the company. The agency now believes that the foreign account played a central role in the alleged diversion of funds and may have helped the company restructure revenue in a way that avoided Indian regulatory scrutiny.
Despite the allegations, WinZO reiterated its commitment to cooperation. A company spokesperson stated that WinZO has “cooperated fully with the investigating agency” and reaffirmed that transparency and fairness guide every aspect of the company’s operations. WinZO insisted that it complies with Indian laws and prioritises user safety. The company also expressed confidence that the investigation will clarify misunderstandings and restore trust among its customers.
ED Targets Pocket52 and Gameskraft in Second Major Operation
Alongside WinZO, the ED expanded its crackdown to include Nirdesa Networks, the operator behind Pocket52, and Gameskraft Technologies, one of India’s largest gaming companies. This investigation also began with FIRs that accused the platforms of manipulating results, colluding with players, and engineering technical glitches that prevented users from withdrawing winnings.
Users reported losses of more than ₹3 crore, and many accused the platforms of stonewalling their attempts to recover their money. The ED responded by raiding multiple office locations in Bengaluru and Gurugram and seizing financial documents, server logs, and operational records.
During the searches, the agency froze eight bank accounts containing ₹18.57 crore. Investigators claim that the transaction patterns in these accounts showed irregular spikes during gaming tournaments and cash-out periods, suggesting deliberate interference in withdrawal processes.
The crackdown comes at a time of immense turmoil for Gameskraft Technologies. In September, the company faced a major internal financial crisis after its former Chief Financial Officer, Ramesh Prabhu, allegedly diverted ₹250 crore of company funds. According to the preliminary findings, Prabhu siphoned the money to engage in speculative trading in the futures and options (F&O) market. This scandal shook investor confidence and forced the company to initiate an internal audit that continues alongside the ED probe.
Gameskraft now struggles to stabilise operations immediately after India adopted the Promotion and Regulation of Online Gaming Act, 2025. The law banned all forms of real-money online gaming and forced platforms such as RummyCulture, Gamezy, Pocket52, and Ludo Select to suspend operations. These shutdowns significantly impacted the company’s cash flow and market standing. The ED’s intervention has now added legal and reputational pressure to an ecosystem already reeling from regulatory upheaval.
A Sector Under Scrutiny
The ED’s aggressive actions reflect the growing concern over financial misconduct in the online gaming industry. The rapid rise of RMG platforms created immense revenue opportunities, but regulators now believe that the lack of oversight encouraged fraud, tax evasion, and unethical business practices. The 2025 ban seeks to address these issues, but enforcement agencies still need to investigate activity that predates the prohibition.
The recent raids indicate a shift in the government’s approach. Instead of treating violations as isolated incidents, the ED now treats them as part of broader networks that involve money laundering, foreign exchange violations, and digital fraud. Officials also want to protect users, many of whom lost significant amounts of money because companies allegedly manipulated their gaming environment.
Industry Faces a Turning Point
The RMG sector stands at a crucial crossroads. Companies such as WinZO and Gameskraft built massive user communities and attracted large investments, but the industry now confronts deeper challenges: legal uncertainty, user distrust, and increasing regulatory pressure.
If the ED substantiates its allegations, the findings will reshape compliance frameworks for India’s gaming startups. Investors will push for stronger internal controls, independent audits, and transparent corporate governance. Regulators may also consider additional rules for gaming apps that operate in global markets or use complex algorithmic systems.
Meanwhile, players demand clarity about refunds, gameplay fairness, and data protection. The investigations also raise questions about how platforms use algorithms, how they handle user funds, and how they interact with foreign entities.
Conclusion
The ED’s raids on WinZO, Pocket52, and Gameskraft represent one of the largest enforcement actions in India’s online gaming sector. The agency uncovered suspected fund diversion, algorithmic manipulation, and cross-border violations. Companies now face intense scrutiny at a time when India’s new legal framework already challenges their survival.
The outcome of this probe will influence the future of digital gaming in India. It will shape policy, corporate behaviour, and user expectations for years to come. For now, the sector watches closely as investigators piece together the financial and operational trail behind one of the most complex cases in recent tech-industry history.
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