ED Freezes Rs 523 Crore: Online Gaming Crackdown on WinZO and Gameskraft

The Enforcement Directorate has frozen deposits worth Rs 523 crore of online gaming companies, WinZO and Gameskraft, after a money laundering investigation revealed that funds meant to be refunded to players were held back following the ban on real-money gaming in India.

The Enforcement Directorate (ED) on Monday announced it has frozen deposits worth approximately Rs 523 crore belonging to online gaming companies WinZO and Gameskraft. The funds, allegedly meant for player refunds after India banned real-money gaming, were found to be held unlawfully by these platforms.

Federal agents conducted raids across Delhi, Bengaluru, and Gurugram from November 18 to 22, targeting parent companies Nirdesa Networks Pvt. Ltd., Gameskraft Technologies Pvt. Ltd., and WinZO Games Pvt. Ltd., including their promoters, as part of a money laundering probe.

The ED accused WinZO of engaging in nefarious activities, claiming players were made to play against algorithms rather than humans in real-money games. Despite the national ban, WinZO reportedly retained Rs 43 crore without refunding customers, while Gameskraft held over Rs 30 crore, leading to the freezing of their accounts.