The Enforcement Directorate (ED) has frozen over Rs 520 crore in assets connected to prominent online real-money gaming (RMG) platforms WinZO and Gameskraft. This significant action follows a probe under the Prevention of Money Laundering Act (PMLA) targeting allegations of cheating, KYC misuse, and illegal operations after India’s ban on real-money gaming came into effect on August 22, 2025. The frozen assets include bank balances, fixed deposits, bonds, and mutual funds linked to these firms.
WinZO, which continues to operate real-money games targeting international markets like Brazil, the US, and Germany through its Indian platform, had approximately Rs 43 crore withheld from users without refunding them. The ED uncovered manipulative practices involving undisclosed algorithms simulating opponents in games, restricted withdrawals, and diversion of Rs 490 crore (USD 55 million) to a US-based shell company, WinZO US Inc., despite all operational control being maintained from India.
Gameskraft and its associated entities, including Pocket52, also faced asset freezes totaling around Rs 18.57 crore across multiple escrow accounts. The probe found allegations of manipulative game outcomes, withheld withdrawals, and fund diversions, compounding the regulatory crackdown after the government banned real-money gaming.
The ED’s coordinated searches and asset freezes highlight India’s stringent enforcement actions against illicit practices in the online gaming sector and signal intensified scrutiny on such platforms’ compliance with national laws
Also Read: OpenAI Launches Shopping Research Tool to Make Online Buying More Personalised
