New Delhi: The Enforcement Directorate (ED) has filed a chargesheet against real-money online gaming platform WinZO and its promoters, alleging a large-scale fraud involving ₹734 crore, in which users were systematically manipulated through games embedded with bots, artificial intelligence and algorithmic profiles.
According to the agency, the chargesheet was filed on January 23 by its Bengaluru zonal office before a designated court under the Prevention of Money Laundering Act (PMLA). Those named as accused include WinZO Pvt. Ltd., its directors Paavan Nanda and Saumya Singh Rathore, along with the company’s wholly owned overseas subsidiaries — WinZO US Inc. (United States), WinZO SG Pte. Ltd. (Singapore) and ZO Pvt. Ltd.
Allegations of Bot-Driven Game Manipulation
The ED has alleged that WinZO projected itself as a transparent, bot-free and secure real-money gaming platform while, in reality, its games were designed to disadvantage genuine users through covert technological manipulation.
Investigators said WinZO offered more than 100 games through its mobile application and claimed to have nearly 25 crore users, a significant proportion of whom came from tier-3 and tier-4 towns. The agency said these users were particularly vulnerable due to limited digital awareness and lower disposable incomes.
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As per the chargesheet, technical analysis of the platform revealed that until December 2023, WinZO’s real-money games (RMGs) had bots, AI systems and algorithmic player profiles embedded directly into the game code. These elements allegedly influenced match outcomes without users’ knowledge.
Shift to Simulated Players and Internal Coding
From May 2024 to August 2025, the agency claims, the company altered its strategy. Instead of deploying visible bots, WinZO allegedly used historical gameplay data of inactive or dormant players, simulating their profiles against real users in live matches, again without disclosure or consent.
To conceal these practices, the ED said the company internally referred to bots and simulated players using terms such as EP (Engagement Play), PPP (Past Performance of Player) and Persona, thereby masking their true nature from regulators and users alike.
The agency further alleged that users were initially lured with small bonuses and easy wins against low-level bots to build trust. Once players began placing higher-value bets, stronger bot profiles were systematically introduced, resulting in sustained financial losses for real users.
User Losses, Withdrawals and Government Ban
According to the ED, this manipulation led to users collectively losing around ₹734 crore. In several cases, even when users legitimately won at higher stakes, withdrawals were allegedly restricted through stringent and opaque payout conditions, forcing players to continue gaming rather than exit the platform.
The chargesheet also notes that despite the Union government imposing a ban on real-money gaming apps in August 2025, WinZO allegedly failed to refund ₹47.66 crore comprising valid winnings and deposited amounts owed to users.
Money Laundering and Overseas Fund Flows
The ED has estimated that between FY 2021–22 and FY 2025–26 (up to August 22, 2025), the company generated ₹3,522.05 crore as proceeds of crime. The agency alleges that a substantial portion of this amount was laundered through shell entities in the United States and Singapore.
Analysis of seized electronic devices, internal communications and financial records indicated that the gaming architecture placed severe financial and psychological pressure on economically weaker users. The agency said it had come across reports linking excessive losses on the platform to extreme mental stress and, in some cases, suicidal tendencies.
Arrests and Ongoing Investigation
The ED said it had conducted searches at premises linked to WinZO and its promoters last year and had arrested Paavan Nanda and Saumya Singh Rathore in connection with the case. Rathore is currently out on bail.
Officials said further investigation is underway to trace international fund flows, identify additional beneficiaries, and examine the role of third-party developers involved in game design and deployment.
