The Directorate of Enforcement (ED), Bengaluru Zonal Office, has intensified its scrutiny of the online real money gaming ecosystem, conducting a series of coordinated search operations between 18 and 22 November 2025 at four locations in Delhi and Gurugram linked to WinZO Games Pvt. Ltd. The action forms part of an ongoing money-laundering probe under the Prevention of Money-Laundering Act (PMLA), 2002.
During the searches, the agency froze ₹505 crore worth of assets, including bank balances, bonds, fixed deposits and mutual fund holdings, invoking Section 17(1A) of PMLA. Authorities believe these assets constitute suspected Proceeds of Crime (POC) generated through unlawful gaming operations and related fraudulent activity.
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Probe Triggered by Multiple FIRs Alleging Fraud, Account Blocking and KYC Misuse
The agency initiated its investigation on the basis of several FIRs filed against WinZO Games Pvt. Ltd. and associated individuals. These complaints accused the platform of cheating users, arbitrarily blocking player accounts, misusing PAN details, and manipulating KYC credentials to facilitate unauthorised transactions.
According to complainants, the alleged misuse of KYC data resulted in substantial financial losses. Several players claimed that their accounts were restricted without explanation, even as funds remained locked within the platform’s internal wallet system.
Real Money Games Operated Abroad; ₹43 Crore Withheld Even After Nationwide Ban
ED findings indicate that WinZO was not only hosting real money games (RMGs) in India but was also running similar RMG operations in foreign jurisdictions such as Brazil, the United States and Germany—all from India, using the same platform infrastructure deployed domestically.
This remained the case even after the Union Government imposed a nationwide ban on RMGs effective 22 August 2025. Despite the prohibition, investigators found that the company continued holding ₹43 crore belonging to players, without initiating refunds. Several users had reportedly been seeking repayment for months.
Major Revelation: Players Matched with Algorithms Instead of Real Opponents
A significant portion of the investigation centres around allegations that WinZO deployed automated algorithms and software to simulate opponents, misleading users into believing they were competing against real players.
ED sources say that players were kept in the dark regarding the non-human nature of their opponents—an omission that could amount to systemic deception.
Through such gameplay, the platform allegedly generated substantial Proceeds of Crime, as bets placed and lost by real customers flowed directly into company accounts. Furthermore, ED officials found that withdrawal limits, delays and outright denial of wallet withdrawals were imposed on users, exacerbating financial harm.
Foreign Fund Diversion Under Scrutiny; USD 55 Million Parked in a US Shell Entity
Another major point of concern for the agency is the suspected diversion of Indian funds abroad. Investigators discovered that both free-to-play games and RMG operations across geographies were managed from a single app and centralised platform based in India.
The ED maintains that substantial funds were transferred under the guise of overseas investments to the US and Singapore. The probe revealed that USD 55 million (₹489.9 crore) was parked in a US-based bank account held in the name of WinZO US Inc.
According to the ED, this foreign entity appears to function as a shell company, with its day-to-day operations, bank account control and administrative decisions allegedly executed from India itself.
Investigation Ongoing; More Action Likely
The Enforcement Directorate has confirmed that the probe is still underway. Preliminary evidence, officials say, points to potential systemic fraud, international fund movement, and violations of gaming regulations.
As the investigation progresses, the agency is expected to scrutinize additional financial transactions, digital infrastructure, foreign holdings and algorithmic frameworks deployed by the company.
If the allegations are substantiated, WinZO Games Pvt. Ltd. and its key officials may face further legal action, including attachment of additional assets and prosecution under PMLA provisions.
