India’s Enforcement Directorate (ED) has frozen assets worth over ₹520 crore linked to online gaming companies WinZO Games Pvt Ltd and Gameskraft Technologies Pvt Ltd under a probe into alleged money-laundering and fraud in the real-money gaming sector.
Search operations were conducted across Delhi, Gurugram and Bengaluru between 18 November and 22 November 2025 under the Prevention of Money Laundering Act (PMLA).
Key figures & entities
- Linked to WinZO: about ₹505 crore in proceeds of crime frozen in bank balances, fixed deposits, mutual funds, bonds
- Linked to Gameskraft (and associated entity Nirdesa Networks/Pocket52): about ₹18.5 crore frozen across eight bank accounts.
- WinZO is also alleged to have ~$55 million (≈ ₹490 crore) in a U.S. bank account under WinZO US Inc., with operations managed from India.
- The probe was triggered by FIRs accusing cheating, blocking of accounts, impersonation, algorithmic manipulation, misuse of KYC and un-refunded player funds.
Why this matters for the gaming sector
- The scale — over ₹500 crore — signals that regulatory scrutiny of the online real-money gaming (RMG) sector in India is intensifying.
- It highlights risks of algorithmic manipulation and non-transparent gameplay: WinZO is alleged to have used bots/algorithms to simulate human opponents, misleading players.
- It underscores concerns of fund diversion and misuse, including cross-border movement of player-funds or company funds under shell entities.
- The timing is significant: India introduced the Promotion and Regulation of Online Gaming Act, 2025 (PROGA) which includes bans / stricter oversight for real-money games—this case may become a landmark.
Impacts & implications
For players & consumers
- If allegations are true, many players may have been mis-led, had withdrawals blocked or lost funds under unclear conditions.
- Platforms will likely face stronger requirements on transparency (game-outcome fairness, payout clarity) and player protection.
For gaming companies
- The cost of compliance, legal risk and reputational risk have increased materially.
- Companies operating or planning to operate RMG platforms must review their business models — especially around KYC/AML, algorithm fairness, cross-country operations.
- Investment in the sector may become more cautious until regulatory clarity is stronger.
For regulators & policy
- The ED action sets a precedent for using PMLA in the RMG sector.
- The case may accelerate implementation of PROGA rules, regulatory oversight, licensing frameworks, and enforcement mechanisms.
- It could lead to policy-changes or stricter rules for real-money gaming, especially about overseas operations, escrow for player funds, and audited game fairness.
What to watch next
- How quickly will refunds/refund mechanisms for affected players be enforced (WinZO reportedly has about ₹43 crore in player funds unrefunded). Entrackr
- Whether other gaming firms come under similar scrutiny or freeze orders.
- The outcome of the ED investigations: will criminal charges follow, how will the companies respond legally, will there be settlements.
- How the government and regulators respond: will there be faster roll-out of PROGA rules, and how will states enforce bans or licensing for RMG.
- How the market and investors react: will funding slow for RMG startups, will valuations adjust, will large established companies adapt.
Final Thoughts
This development marks a major turning point for the real-money gaming industry in India. What started largely as a fast-growing vertical is now facing regulatory, legal and reputational headwinds. For the focus keyword “real-money gaming probe India”, the ED’s freezing of over ₹520 crore tied to WinZO and Gameskraft underlines the seriousness of the risks. Companies, regulators and players alike will need to navigate a far more rigorous compliance environment going forward.
