ED freezes deposits worth Rs 523 crore in probe against online gaming platforms WinZo, Gameskraft
New Delhi (PTI): The Enforcement Directorate (ED) on Monday said it has frozen collective deposits worth about Rs 523 crore of online gaming companies WinZO and Gameskraft, as the platforms allegedly "held" funds worth crores of rupees that should ideally have been refunded to players after India banned real-money gaming recently.
The federal probe agency conducted multiple searches between November 18 and 22 in Delhi, Bengaluru, and Gurugram as part of a money laundering investigation against their parent companies, Nirdesa Networks Pvt. Ltd. (NNPL), Gameskraft Technologies Pvt. Ltd. (GTPL) and WinZO Games Pvt. Ltd, and their promoters.
These platforms offered online real-money gaming services to players.
The ED accused WinZO of "engaging in criminal activities and unscrupulous practices as customers were made to play with algorithms without being made aware of the fact that they are playing with the software and not with humans in real-money games".
WinZO, the agency said in a statement, was operating real-money games (RMGs) in countries such as Brazil, the US and Germany etc., from India (on the same platform used by the Indian entity).
"Even after the ban of RMGs by the Union government (w.e.f. 22/08/2025), an amount of Rs 43 crore is still held by the company without refunding to the gamers/customers," the ED said.
The alleged proceeds of crime worth about Rs 505 crore "possessed" by WinZO Games were frozen under the Prevention of Money Laundering Act (PMLA). These deposits are kept in bank accounts in the form of bonds, fixed deposits and mutual funds, the ED said.
Making a similar charge against Gameskraft, that offered online money gaming services under the name Pocket52.com, the ED said that even after the government ban (through the Promotion and Regulation of Online Gaming Act, 2025) an amount of more than Rs 30 crore was "still held" by the company in its escrow accounts without refunding to gamers/customers.
The agency said it has frozen eight bank accounts (escrow accounts for payout maintained with various banks) holding deposits worth Rs 18.57 crore in the probe against Gameskraft. It alleged that these proceeds of crime were parked by the accused entities including NNPL and Pocket52, etc.
WinZO, the ED said, also prevented or limited withdrawals of money held by the customers in the wallets and generated alleged illicit funds in the form of bet amounts placed and lost by real customers through the "unscrupulous" use of algorithms/software.
The agency claimed to have found that global operations of WinZO were undertaken under the single app, meaning that they were being hosted from the India-based platform.
"It was also found that the funds by the Indian entity have been diverted to the US and Singapore under the garb of overseas investments.
"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," the ED charged.
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One dead, another missing after boat capsizes in Phalguni river near Kavoor
Kavoor: A fishing trip turned tragic after a small boat capsized in the Phalguni river at Kunjathbail in Kavoor on Wednesday morning, leaving one youngster dead and another missing.
The deceased has been identified as Ganesh (28), a resident of Kunjathbail. Another youth, Royal (27), has gone missing after drowning in the river, police said.
According to available information, three friends had gone to the river in a small boat to catch fish. While they were fishing, the boat reportedly lost balance and overturned, throwing all three into the water.
Ganesh and Royal, who did not know swimming, drowned in the river. The third youngster, Nithesh (29), managed to swim to safety and reach the shore.
Following the incident, fire and emergency services personnel along with local divers launched a search operation in the river. By afternoon, Ganesh’s body was recovered. However, Royal remains missing and search operations are still underway, sources said.
A case has been registered at Kavoor police station in connection with the incident.
