Winzo Gaming Platform Accused of Massive Rs 3,522 Crore Fraud Using AI Bots
The Enforcement Directorate (ED) has filed a prosecution complaint before a special court in Bengaluru against Winzo Pvt Ltd, its directors, and others, alleging a staggering Rs 3,522 crore was siphoned off in less than four years through fraudulent gaming practices.
Investigation Based on Multiple FIRs Across States
The ED initiated its investigation based on multiple FIRs registered by:
- Bengaluru CEN police station
- Police authorities in Rajasthan
- New Delhi police
- Gurugram police
During raids conducted between November 18 and December 30 last year at Winzo offices, directors' residences, and other locations, the investigating agency seized Rs 690 crore in connection with the case.
How Winzo's Gaming Platform Operated
The ED revealed that Winzo operates a mobile application hosting Real Money Games (RMG) with:
- Over 100 number games
- A claimed user base of approximately 25 crore users
- Primary users from Tier-3 and Tier-4 cities
The company charged a commission percentage from user betting amounts while assuring users that their gaming platform was "free from any BOTs and transparent and secure."
Systematic Manipulation Through AI and Bots
The investigation uncovered that most RMGs were manipulated through sophisticated methods:
- Initial Period (till December 2023): Games were embedded with BOTs, AI, and algorithm profiles
- Later Period (May 2024 to August 2025): The company changed its approach to simulate historical match-play data of dormant/inactive players against real users without their knowledge or consent
To conceal these activities, Winzo deliberately used misleading terminology such as:
- EP (Engagement Play)
- PPP (Past Performance of Player)
- Persona
Deceptive User Onboarding and Financial Losses
The ED investigation revealed a systematic pattern of deception:
Users were initially lured with small bonuses and allowed to win against easy BOTs, with permission to withdraw small winnings to create false trust. Once users began playing with higher amounts, Winning/Hard BOTs were deployed systematically, resulting in significant financial losses.
Evidence shows genuine users lost to BOT profiles, incurring losses amounting to Rs 734 crore. Additionally, even legitimate winnings at higher stakes were often blocked through restrictive withdrawal mechanisms.
Failure to Return Legitimate Funds
The investigation found that Winzo failed to return legitimate user winnings and deposits amounting to Rs 47.66 crore, even after the Union Government banned RMG operations.
Between fiscal years 2021-2022 to 2025-2026 (as of August 22 last year), the company generated total proceeds of crime amounting to Rs 3,522.05 crore through these fraudulent practices.
International Money Laundering Network
The ED investigation disclosed sophisticated money laundering operations:
- Proceeds of crime were laundered through shell companies created in the United States and Singapore
- Approximately $55 million was transferred to foreign bank accounts under the guise of Overseas Direct Investment (ODI)
- An amount of Rs 230 crore was diverted to another accused subsidiary company under the pretext of 'Loans from Holding Company' without legitimate business rationale
Attempts were also made to divert an additional Rs 150 crore through the ODI route, but these failed due to non-submission of mandatory audit and utilisation certificates.
The case represents one of the largest gaming frauds uncovered in India, highlighting the vulnerabilities in digital gaming platforms and the sophisticated methods employed to defraud users while laundering proceeds through international networks.
