The Enforcement Directorate has arrested online real-money gaming platform WinZO co-founders Saumya Singh Rathore and Paavan Nanda on money laundering charges, intensifying regulatory heat on India’s online gaming ecosystem. The arrests follow multi-day searches at four locations in Delhi and Gurugram by the ED’s Bengaluru Zonal Office and come after assets worth over ₹505 crore linked to WinZO were frozen under the Prevention of Money Laundering Act (PMLA).
Allegations: Algorithms, Withheld Funds and Misused KYC
According to ED, WinZO is accused of making users unknowingly play against algorithms and software instead of real human opponents in real-money games, allegedly ensuring the platform an “unfair edge” and illicit profits. Multiple FIRs against the company and others allege cheating, blocking of withdrawal requests, impersonation, misuse of PAN, and misuse of players’ KYC data, with complainants claiming substantial financial loss.
The agency also alleges that even after a nationwide ban on real-money games took effect on 22 August 2025, WinZO continued to hold around ₹43 crore belonging to gamers instead of refunding these balances. ED says proceeds of crime worth about ₹505 crore have been frozen in the form of bank balances, mutual funds, corporate bonds and fixed deposits.
Searches, Asset Freeze and International Operations
Searches conducted between 18 and 22 November led to seizure of mobile phones, laptops and extensive data backups from premises linked to WinZO’s founders and associates. Investigators claim the same India-based platform was used to operate real-money games not just domestically but also in countries such as Brazil, the United States and Germany, raising questions over cross-border compliance and revenue routing.
ED sources indicate that part of the suspected proceeds were allegedly diverted via shell entities, while player withdrawals were restricted or delayed, deepening suspicion of systematic fraud. The founders were produced before a Bengaluru court, which granted ED custody for further interrogation on the money-laundering allegations.
WinZO’s Response and Wider Industry Implications
A spokesperson for WinZO has rejected the allegations, stating that the company complies with all applicable laws and has been cooperating with investigators. WinZO maintains that fairness and transparency are core to its game design and operations, even as enforcement agencies portray the case as a textbook example of deceptive design, opaque algorithms and weak refund practices in high-risk gaming products.
Policy experts see the case as a potential turning point for India’s online gaming regulation, especially around real-money games, algorithmic transparency, protection of user funds, and cross-border operations. Regulators are expected to scrutinise other platforms with similar business models, making the WinZO investigation a bellwether for the sector’s future compliance standards.
