11 locations searched across Bengaluru, Delhi and Gurugram; crypto wallets recovered, raising laundering concerns.
In a major enforcement action that has sent tremors across India’s rapidly expanding online gaming industry, the Enforcement Directorate (ED) conducted searches at 11 locations linked to real-money gaming companies WinZO and Gameskraft. The action follows multiple complaints and FIRs filed by users alleging that the platforms manipulated gaming algorithms to reduce players’ chances of winning and unfairly boost platform revenues.
The ED’s Bengaluru Zonal Office led the coordinated search operation. Five premises in Bengaluru, four in Delhi and two in Gurugram—including corporate headquarters and residences of key senior executives such as CEOs, COOs and CFOs—were raided. According to officials familiar with the investigation, the search teams seized digital records, internal communications, transaction logs and server backups, all of which will undergo forensic examination.
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Crypto Wallets Under Scanner
A significant discovery during the raids was the identification of multiple crypto wallets reportedly linked to the companies’ promoters. Officials say this raises the possibility that revenue generated through gaming platforms may have been moved through cryptocurrency channels, potentially to evade taxation or launder funds.
Investigators have begun mapping wallet-to-wallet transfers, crypto exchange accounts and blockchain activity. The ED will focus on determining whether money from the gaming ecosystem was routed outside India or layered through anonymous digital pathways. Sources say the crypto trail will likely become a key pillar of the enquiry under the Prevention of Money Laundering Act (PMLA).
User Complaints Triggered Action
The enforcement action originates from complaints by users who alleged that the real-money games hosted on these platforms were neither transparent nor based on fair-play algorithms. Players claim that the software architecture was structured to ensure that the house, not the user, consistently benefited. Some complainants supported their claims with screen recordings and gameplay logs showing suspicious outcome patterns.
Preliminary analysis of the seized servers and algorithmic models has indicated “inconsistencies” with standard probability-based systems, an official said. Although the ED has not yet drawn conclusions, the early findings were “serious enough” to warrant a deeper investigation.
Sector Faces Regulatory Disruption
The raids come at a time when the online gaming industry is dealing with dramatic regulatory changes. The Promotion and Regulation of Online Gaming Act, which came into effect on October 1, has fundamentally reshaped how real-money gaming platforms operate. Many leading companies—including Dream11, My11Circle, WinZO, Zupee and PokerBaazi—have suspended cash-based games as they revisit compliance requirements.
For nearly three years, the IT Ministry has been in continuous dialogue with gaming firms, banking institutions and fintech intermediaries to formulate a stable regulatory structure. The new rules, however, have forced gaming companies to re-evaluate not only their product lines but also their core business models.
IT Minister Ashwini Vaishnaw recently reiterated that the government’s approach has been “consultation-driven”, but compliance expectations will be “non-negotiable” going forward.
Gameskraft’s Strategic Shift
Amid increased scrutiny, Gameskraft has publicly stated that it will not challenge the new gaming law. On August 21, the company suspended all real-money “Gameplay” and “Add Cash” features on its Rummy platforms. A company spokesperson said Gameskraft is “a responsible and law-abiding corporate entity” and is committed to aligning with the updated legal environment.
The firm has also established internal teams to explore alternative business models that rely on skill-based engagement rather than cash-driven gaming revenue. The priority, the company says, is to safeguard employees, vendors and long-term partners during this transition.
What Lies Ahead
The ED investigation is still in its early stages, but the volume of digital data seized indicates that the probe may expand significantly in the coming weeks. If evidence of algorithmic manipulation or illegal fund movement is substantiated, regulatory consequences could be severe, including financial penalties, operational restrictions and criminal accountability for individuals involved.
For the broader online gaming ecosystem, this episode reinforces the message that transparency, algorithmic audits and financial compliance will be central pillars of the industry’s future. As companies adjust to a more stringent legal environment, the pressure to maintain trust and fairness among users is likely to intensify.
