The Enforcement Directorate (ED) has seized Indian rupees 527 crore (Rs 527 crore / $59m) following nationwide raids on several online gaming companies, intensifying scrutiny of real-money gaming activity under the Prevention of Money Laundering Act.
Searches were conducted at offices linked to Winzo in Bengaluru and Gurugram. Investigators said the operation resulted in the seizure of nearly Rs 505 crore in bank deposits, bonds, and mutual fund investments.
According to the ED, the company allegedly manipulated game outcomes using hidden algorithms designed to ensure players lost money.
Officials also said Winzo created an offshore entity named Winzo US, through which approximately $55m was allegedly transferred from India to the United States and Singapore.
The company is accused of retaining Rs 43 crore that should have been returned to players after the central government imposed a nationwide ban on real-money gaming under the Promotion and Regulation of Online Gaming Act 2025.
Investigators executed parallel raids on NDS Networks Pvt, operator of Pocket52, and Gameskraft Technologies, following complaints of fraudulent manipulation of gaming outcomes.
Authorities allege Pocket52 predetermined game results and introduced deliberate technical disruptions, with one user reportedly losing Rs 3 crore.
Both companies are accused of withholding more than Rs 30 crore in customer funds by keeping balances in escrow accounts despite the nationwide ban.
Eight bank accounts containing Rs 18.57 crore were frozen, and officials seized phones, laptops, and corporate documents from company directors.
The ED said the findings indicate a wider pattern of technical manipulation, illegal fund movement, and consumer fraud within the real-money gaming ecosystem.
The agency is continuing to examine financial records to determine the scale of potential violations and identify additional entities involved.
Recent developments reflect sustained pressure on India's online gaming sector. In October, India's Supreme Court agreed to hear a petition seeking stricter oversight of esports and social gaming platforms following concerns about underage gambling and regulatory gaps.
That plea highlighted the need for coordinated enforcement across multiple ministries.
India's Enforcement Directorate has increased cross-border financial tracking in cases involving online gaming platforms and intermediary payment channels
