India's financial crime investigation agency has taken massive action against two prominent online gaming companies, freezing assets worth more than ₹524 crore in parallel money laundering probes. The Enforcement Directorate (ED) revealed these enforcement measures following searches conducted across multiple cities in November.
Major Crackdown on Gaming Giants
The Enforcement Directorate executed search operations between November 18 and 22 targeting WinZO Games and Nirdesa Networks, which operates the popular platform Pocket52. These coordinated raids spanned key locations including Delhi, Gurugram, and Bengaluru, marking one of the most significant enforcement actions since the nationwide ban on real-money gaming took effect.
According to official statements released on November 24, the investigations uncovered widespread allegations of financial misconduct, including cheating, manipulated game outcomes, and systematic diversion of user funds. Both companies face serious accusations of continuing their real-money gaming operations despite the Union government's comprehensive ban implemented through the Promotion and Regulation of Online Gaming Act on August 22, 2025.
WinZO Games: Massive Freeze and Overseas Operations
The ED's investigation into WinZO Games resulted in the freezing of approximately ₹505 crore held in various financial instruments including bank balances, fixed deposits, bonds, and mutual funds. The probe originated from multiple First Information Reports (FIRs) that alleged serious offenses including cheating, impersonation, arbitrary blocking of user accounts, misuse of PAN details, and fraudulent loss of customer funds.
Investigators made startling discoveries about WinZO's continued operations. Despite the nationwide ban, the company allegedly continued offering real-money games in international markets including Brazil, the United States, and Germany while operating from Indian territory. The ED claims that WinZO still holds approximately ₹43 crore belonging to customers without processing refunds.
More concerning allegations emerged during the investigation. Users were reportedly matched against undisclosed algorithms instead of human players, effectively ensuring predetermined outcomes. The agency also found evidence of restricted withdrawals and alleged that proceeds of crime were generated directly from user losses. Furthermore, substantial funds were allegedly diverted overseas under the guise of foreign investments, including $55 million (approximately ₹489.9 crore) reportedly parked in a US bank account under "WinZO US Inc."
A WinZO spokesperson responded to the allegations, stating: "We have been cooperating fully with the investigating agency and will continue to support the process. Fairness and transparency are core to how WinZO designs and operates its platform. WinZO remains fully compliant with all applicable laws."
Pocket52 Investigation Reveals Systemic Issues
In the parallel investigation targeting Nirdesa Networks and Gameskraft Technologies, the ED conducted searches at company offices and residences of directors and associated individuals. This probe follows a Karnataka Police FIR that alleged manipulated game outcomes, player collusion, removal of transparency features such as hand histories, withdrawal restrictions, and non-compliance with responsible gaming norms.
The scale of individual losses became apparent when one complainant reported losing more than ₹3 crore due to what investigators described as systemic cheating mechanisms. During the searches, authorities seized laptops, mobile phones, and backed up "voluminous" data for detailed analysis.
Despite the nationwide ban, Pocket52 allegedly continues to hold over ₹30 crore in escrow accounts without refunding users. The ED has already frozen eight escrow accounts containing ₹18.57 crore under provisions of the Prevention of Money Laundering Act (PMLA).
Ongoing Investigations and Industry Impact
The Enforcement Directorate has confirmed that further investigation is underway in both matters. These enforcement actions represent among the largest steps taken since the Union government outlawed real-money gaming nationwide. The cases highlight growing regulatory scrutiny on the online gaming industry and signal stronger enforcement of financial compliance standards.
The investigations have revealed complex financial structures and alleged circumvention of regulatory measures by gaming companies. The ED's findings suggest sophisticated methods were employed to move funds overseas while maintaining operations that allegedly violated Indian laws governing online gaming and financial transactions.
As the probes continue, industry observers anticipate stricter regulatory oversight and increased compliance requirements for gaming platforms operating in India. The outcomes of these investigations could set important precedents for how financial authorities handle similar cases in the rapidly evolving digital gaming landscape.
