The Enforcement Directorate (ED) conducted coordinated raids on online gaming platforms Gameskraft and WinZO across Bengaluru, Delhi and Gurugram on November 18, according to sources quoted by Moneycontrol. The searches covered 11 locations five in Bengaluru, four in Delhi and two in Gurugram including corporate offices and the residences of senior executives.
Searches Triggered by Complaints Over Manipulated Algorithms
Sources said the searches stem from FIRs filed by users who alleged that the companies manipulated in-app algorithms, creating an uneven playing field and placing players at a disadvantage. Investigators also discovered crypto wallets linked to company promoters, raising suspicions of possible money laundering through cryptocurrencies. ED is expected to examine whether these wallets were used to move gaming deposits or winnings offshore.
Context: India’s Ban on Online Money Games
The raids come months after the Indian government introduced a new gaming law that bans all real-money online games where players deposit funds with the expectation of financial returns. This regulatory shift has reshaped India’s gaming landscape and forced multiple players to pivot or shut operations. Both Gameskraft and WinZO have already discontinued their real-money gaming businesses in India following the ban.
Gameskraft’s Ongoing Fraud Case Adds Pressure
Bengaluru-based Gameskraft operator of the rummy platform Rummyculture is already embroiled in a separate fraud investigation involving its former CFO Ramesh Prabhu, who allegedly siphoned off ₹270.43 crore over five years. An FIR was filed in September after the company lodged a complaint with the Marathahalli police.
WinZO’s Global Operations Also Under Scrutiny
WinZO, which offers over 100 casual games in 15 languages, remains active in the United States and Brazil through its international operations. The ED is expected to examine whether cross-border corporate structures were used to route funds or data.
Final Take
The ED’s multi-city raids highlight rising regulatory scrutiny on India’s gaming sector. As enforcement actions intensify, compliance and transparency will define which companies can sustain long-term operations post-ban.
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