India’s Enforcement Directorate (ED) said it has frozen accounts holding more than Rs 523 crore (US$58.6 million) after raiding the premises of three online gaming companies. The funds, it alleged, should have been returned to players once the country implemented its recent ban on real-money gaming despite ongoing legal challenges against the ban.
According to local media reports, the three companies in question are named as WinZO Games, Nirdesa Networks and Gameskraft Technologies with the ED having conducted multiple searches of offices in Delhi, Bengaluru and Gurugram between 18 and 22 November, The Economic Times said.
WinZO is accused of operating real-money games in Brazil, the US and Germany from India and on the same platform used by its Indian entity, and of “engaging in criminal activities and unscrupulous practices as customers were made to play with algorithms without being made aware of the fact that they are playing with the software and not with humans in real-money games.
“Even after the ban of RMGs by the Union government, an amount of Rs 43 crore (US$4.8 million) is still held by the company without refunding to the gamers/customers,” the ED said.
Alleged proceeds of crime amounting to Rs 505 crore (US$56.6 million) held by WinZO were frozen under the Prevention of Money Laundering Act.
The ED also alleges Gameskraft offered online money gaming services under its Pocket52.com brand after the government ban and had subsequently frozen eight bank accounts holding deposits worth Rs 18.57 crore (US$2.1 million).
The controversial Promotion and Regulation of Online Gaming Act, 2025, which was passed suddenly by parliament in August and quickly signed into law in August, not only online casino gaming but also skill games such as fantasy sports, esports and poker. Under the bill, anyone offering real-money online games faces a jail term of up to three years plus a fine.
However, India’s Supreme Court hinted on the opening day of a legal challenge earlier this month that skill-based games and competitions could be exempt.
The next hearing is scheduled to take place today.
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