The Enforcement Directorate (ED) has alleged that real-money gaming platform WinZO siphoned off ₹3,522 crore in less than four years by systematically manipulating online games using artificial intelligence, bots and algorithmic profiles, causing extensive financial losses to genuine users. The agency has filed a prosecution complaint before a special court in Bengaluru, accusing the company of generating and laundering proceeds of crime through domestic and overseas channels.
According to the ED’s submissions, WinZO operated a mobile-based real-money gaming (RMG) platform offering more than 100 games, while claiming a user base of nearly 25 crore players, largely from Tier-3 and Tier-4 cities. The platform charged a commission on users’ betting amounts and publicly assured players that its games were bot-free, transparent and secure.
However, the investigation found that a majority of the games were rigged. Analysis of game codebases, third-party developer agreements and internal communications revealed that until December 2023, WinZO’s games were embedded with bots, AI-driven opponents and algorithmic player profiles designed to influence outcomes.
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Investigators told the court that between May 2024 and August 2025, the company modified its operating model by simulating historical gameplay data of dormant or inactive users against real players, without their knowledge or consent. This method, the ED said, was used to create the illusion of genuine competition while covertly controlling results.
To conceal these practices, the company allegedly referred to bots and simulated players using internal terminology such as “EP” (Engagement Play), “PPP” (Past Performance of Player) and “Persona”, masking their true function. The agency said these descriptions were deliberately misleading and intended to avoid detection.
The investigation further revealed that users were initially lured with small bonuses and allowed to win against easy bots, including withdrawing minor winnings, to build trust. Once users increased their stake sizes, high-difficulty or “winning” bots were systematically deployed, leading to significant financial losses.
As per the ED’s findings, genuine users collectively lost around ₹734 crore to bot-controlled profiles. In several cases, even legitimate winnings at higher stakes were allegedly blocked through restrictive withdrawal mechanisms, forcing users to continue playing.
The agency also alleged that after the Union government imposed a ban on real-money gaming, WinZO failed to return ₹47.66 crore in legitimate user winnings and deposits. Taken together, the ED claimed the company generated total proceeds of crime amounting to ₹3,522.05 crore between FY 2021–22 and FY 2025–26 (up to August 22, 2025).
A significant portion of the investigation focuses on money laundering. The ED informed the court that the proceeds were routed through shell companies incorporated in the United States and Singapore. Around $55 million was allegedly transferred to overseas bank accounts under the guise of Overseas Direct Investment (ODI).
In addition, approximately ₹230 crore was allegedly diverted to an accused subsidiary entity as purported “loans from a holding company”, without any legitimate business rationale. The agency said an attempt was also made to transfer an additional ₹150 crore via the ODI route, but this failed due to non-submission of mandatory audit and utilisation certificates.
The ED initiated the probe based on multiple FIRs registered by cybercrime and police units in Bengaluru, Rajasthan, Delhi and Gurugram. During searches conducted between November and December 2025 at company offices, residences and related premises, assets worth approximately ₹690 crore were seized.
The case has raised serious questions about regulatory oversight in the online gaming sector, particularly platforms targeting economically vulnerable users with promises of easy winnings. Investigators said the scale, sophistication and duration of the alleged manipulation point to a systemic abuse of technology for financial gain.
The matter is now before the special court, which will examine the prosecution complaint and related evidence. Further proceedings are expected to determine the extent of criminal liability and the recovery of alleged proceeds of crime.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
