ED Freezes ₹523 Crore in Gaming Crackdown: WinZO, Gameskraft Under Scrutiny
The Enforcement Directorate has frozen assets worth ₹523 crore from major gaming platforms WinZO and Gameskraft in a sweeping money laundering investigation. The crackdown targets real-money gaming operations that continued despite the nationwide ban implemented in August 2025.
Key Takeaways
- ED freezes ₹505 crore from WinZO Games in bank balances, bonds, and mutual funds
- Additional ₹18.57 crore frozen from Gameskraft’s escrow accounts
- Companies accused of operating real-money games post-ban and holding customer funds
- WinZO allegedly diverted ₹489.90 crore to US shell entity
Major Asset Freeze in Gaming Sector
The Enforcement Directorate announced on Monday that it has frozen proceeds of crime valued at approximately ₹505 crore held by WinZO Games Pvt Ltd. The assets include bank balances, bonds, fixed deposits, and mutual funds seized under the Prevention of Money-Laundering Act (PMLA).
This action follows raids conducted last week at offices of online gaming platforms Gameskraft and WinZO across Bengaluru, Delhi, and Gurugram. In a parallel investigation, the ED froze approximately ₹18.57 crore held in escrow accounts linked to Gameskraft, bringing the total frozen assets to ₹523 crore.
WinZO Investigation Details
Between November 18-22, 2025, ED’s Bengaluru office conducted search operations at four locations in Delhi and Gurgaon related to WinZO Games. The investigation was initiated following multiple FIRs alleging cheating, misuse of PAN details, blocked accounts, impersonation, and fraudulent practices involving customer KYC information.
Investigators found that WinZO continued operating real-money games in international markets including Brazil, the United States, and Germany even after the Union Government banned such games on August 22, 2025. The company reportedly held ₹43 crore without refunding affected users.
The ED discovered that WinZO used software and algorithms to play against customers without disclosure, restricted customer wallet withdrawals, and generated illicit gains from bets lost by real players. The company’s global operations ran through a single platform from India, with approximately $55 million (₹489.90 crore) parked in bank accounts of WinZO US Inc, described as a shell entity controlled from India.
Company Response
A WinZO spokesperson stated: “We have been cooperating fully with the investigating agency and will continue to support the process. 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. WinZO remains fully compliant with all applicable laws.”
Gameskraft Under Scrutiny
In parallel actions, the ED conducted searches at offices and residences linked to Pocket52 parent Nirdesa Networks and Gameskraft Technologies in Bengaluru and Gurugram. During these searches, the agency seized mobile phones, laptops, and backed-up corporate data belonging to Gameskraft.
The investigation revealed that Gameskraft continued to hold more than ₹30 crore in escrow accounts even after the nationwide ban under the Promotion and Regulation of Online Gaming Act. Investigators froze eight escrow accounts with balances totaling approximately ₹18.57 crore, labeling them as suspected proceeds of crime.
This crackdown follows the August 2025 law that banned real-money online gaming nationwide and prohibited financial institutions from facilitating such platforms. The regulatory measures have triggered widespread layoffs, closures, and industry realignment within India’s online gaming sector.
