ED Crackdown on Money Gaming: ₹523 Crore in Assets Frozen Linked to WinZO, Gameskraft, Pocket52

The Enforcement Directorate (ED) on Monday stated that it has frozen proceeds of crime valued at approximately ₹505 crore held by WinZO Games Pvt Ltd. The assets, comprising bank balances, bonds, fixed deposits and mutual funds were seized under Section 17(1A) of the Prevention of Money-Laundering Act (PMLA), 2002.

The action follows a series of raids conducted last week at the offices of online gaming platforms Gameskraft and WinZO across Bengaluru, Delhi and Gurugram.

In a parallel investigation, the ED also froze approximately ₹18.57 crore held in escrow accounts linked to Gameskraft, bringing the total value of frozen assets belonging to real-money gaming start-ups to about ₹523 crore.

The latest move signals an escalation in the federal agency’s scrutiny of real-money gaming companies amid broader enforcement efforts within the sector.

ED Investigation Findings

Between November 18 and 22, 2025, ED’s Bengaluru Zonal Office conducted search operations at four locations in Delhi and Gurgaon related to WinZO Games under the PMLA.

WinZO had proceeds of crime worth approximately ₹505 crore frozen in the form of bank balances, bonds, fixed deposits, and mutual funds. The Directorate had initiated its investigation following multiple FIRs alleging cheating, misuse of PAN details, blocked accounts, impersonation and fraudulent practices, including misuse of customers’ KYC information.

According to the investigation, WinZO continued operating real-money games in markets such as Brazil, the United States, and Germany, even after the Union Government banned such games on August 22, 2025. The company still held ₹43 crore without refunding affected users.

The ED found that WinZO used software and algorithms to play against customers without disclosure, restricted withdrawals of customer wallet balances, and generated illicit gains from bets lost by real players. Investigators also discovered that the company’s global gaming operations ran through a single platform from India and that funds were diverted abroad as purported overseas investments. About USD 55 million (₹489.90 crore) was reportedly parked in bank accounts of WinZO US Inc, described as a shell entity controlled from India. Further investigation remains ongoing.

WinZO’s Response

Responding to the incident a WinZO spokesperson said, “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.”

ED Crackdown on Gameskraft

In a parallel investigation, the ED also conducted searches at offices and residences linked to Pocket52 parent Nirdesa Networks and rival Gameskraft Technologies in Bengaluru and Gurugram. The actions were carried out under the PMLA as part of an ongoing probe into suspected illegal activities tied to online gaming platforms.

During the searches, the ED seized mobile phones, laptops and backed-up corporate data belonging to Gameskraft. The agency stated that Gameskraft continued to hold more than ₹30 crore in escrow accounts even after the nationwide ban imposed under the Promotion and Regulation of Online Gaming Act, which came into force on August 22, 2025. Investigators also froze eight escrow accounts linked to various entities, with balances totalling approximately ₹18.57 crore, labeling them as suspected proceeds of crime.

The investigation comes against the backdrop of the August 2025 law, which banned real-money online gaming nationwide and prohibited financial institutions from facilitating such platforms. The regulatory crackdown has since triggered widespread layoffs, closures and a broader realignment within India’s online gaming industry.