ED Takes Strict Action Against Money Gaming Firms… ₹523 Crore Deposits Frozen

The Enforcement Directorate (ED) has taken major action against real-money online gaming companies. Raids were conducted in Delhi, Bengaluru, and Gurugram under the Prevention of Money Laundering Act (PMLA), targeting Winzo, Gameskraft, and the residences of their promoters. Following the searches, the ED froze bank deposits worth ₹523 crore.

Despite the nationwide ban imposed under the Promotion and Regulation of Online Gaming Act, 2025, the companies allegedly with held players’ funds instead of returning them. The ED stated that Winzo misled users by allowing them to play against algorithms and software instead of real opponents, describing the activity as illegal and deceptive. Officials also found that Winzo was operating similar money-based gaming services in countries such as Brazil, the United States, and Germany. The agency froze ₹505 crore in suspected illegal deposits.

Gameskraft, operating under the platform Pocket52.com, reportedly retained more than ₹30 crore of user funds. The ED froze ₹18.57 crore belonging to the firm.

The agency further alleged that Winzo restricted or blocked wallet withdrawals and siphoned the money through algorithms, moving funds abroad under the guise of foreign investment. Around USD 55 million (approximately ₹490 crore) was found deposited in an American bank.

Winzo issued a statement saying that it is fully cooperating with the investigation.