ENFORCEMENT DIRECTORATE (ED) has frozen deposits worth approximately Rs 523 crore belonging to online gaming firms WinZO and Gameskraft, as part of its money laundering investigation into the companies and their parent entities. The agency said the funds were retained instead of being refunded to users following India’s ban on real-money gaming introduced in August this year.
Searches were carried out between 18 and 22 November across Delhi, Bengaluru and Gurugram. The investigation spans Nirdesa Networks (NNPL), Gameskraft Technologies (GTPL), WinZO Games, and their promoters, all of whom operated real-money gaming platforms.
According to the ED, WinZO engaged in “criminal activities and unscrupulous practices”, alleging that users were unknowingly matched against algorithms rather than human opponents in paid games. A company spokesperson said WinZO was “cooperating fully with the investigating agency and will continue to support the process”.
The agency also said WinZO continued offering real-money games to users in Brazil, the United States and Germany via the same India-based platform. It claimed the company still holds Rs 43 crore without refunding customers after the nationwide ban.
Under the Prevention of Money Laundering Act, the ED has frozen what it calls “proceeds of crime” amounting to Rs 505 crore held by WinZO Games in bank accounts, bonds, fixed deposits and mutual funds.
WinZO stated, “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 also said it remains compliant with applicable laws.
Gameskraft, operator of the Pocket52.com platform, faces similar allegations. The ED claimed the company retained more than Rs 30 crore in escrow accounts instead of refunding users after the Promotion and Regulation of Online Gaming Act, 2025 came into effect. Eight bank accounts holding Rs 18.57 crore have been frozen as part of the inquiry. The agency maintains these funds are proceeds of crime linked to NNPL, Pocket52 and associated entities.
The ED further alleged that WinZO restricted users’ ability to withdraw wallet balances and generated illicit revenue from wagers lost through the “unscrupulous” use of software. It said WinZO’s global operations were managed through a single India-based app, and that funds were diverted abroad to the US and Singapore under the guise of investment.
According to the agency, “funds worth USD 55 million (about Rs 489.90 crore) have been parked in their (WinZO) bank account in the US, which is a shell company since all the operations and day-to-day business activities and operation of bank accounts were done from India”.
