Crackdown on Online Gaming Giants: ED Freezes Rs 523 Crore Deposits

The Enforcement Directorate (ED) has frozen Rs 523 crore in deposits belonging to online gaming companies such as WinZO and Gameskraft. These funds, meant for player refunds following India's ban on real-money gaming, were discovered during a probe into the companies' alleged money laundering activities.

The Enforcement Directorate (ED) has taken significant action against online gaming giants WinZO and Gameskraft, freezing collective deposits amounting to Rs 523 crore. The move comes amid a money laundering investigation following allegations that these companies retained funds that were supposed to be refunded to players after the ban on real-money gaming in India.

The federal agency's raids in Delhi, Bengaluru, and Gurugram uncovered unsettling practices by the parent companies—Nirdesa Networks Pvt. Ltd., Gameskraft Technologies Pvt. Ltd., and WinZO Games Pvt. Ltd. WinZO faces accusations of deploying algorithms to manipulate player interactions and of withholding refunds amounting to Rs 43 crore even after the government's ban.

Gameskraft, operating under Pocket52.com, is similarly accused of retaining over Rs 30 crore. The ED has frozen deposits in several bank accounts linked to the companies' operators, while investigations have revealed the alleged diversion of funds to US and Singapore-based shell companies, worth approximately USD 55 million.

(With inputs from agencies.)