New Delhi: In one of the most serious crackdowns on India’s real-money gaming ecosystem, the Enforcement Directorate (ED) has chargesheeted online gaming platform WinZO and its promoters, accusing the company of systematically manipulating its games using bots, artificial intelligence, and algorithmic tricks to siphon money from users. According to the central agency, players on the platform suffered cumulative losses of ₹734 crore, while the company allegedly generated illegal proceeds worth over ₹3,500 crore.
The prosecution complaint was filed on January 23 by the ED’s Bengaluru zonal office before a special court under the Prevention of Money Laundering Act (PMLA).
Credits: Kashmir Observer
Who Has Been Named In The Chargesheet
The chargesheet names WinZO Pvt. Ltd., its directors Paavan Nanda and Saumya Singh Rathore, and several wholly owned subsidiaries, including WinZO US Inc. (USA), WinZO SG Pte. Ltd. (Singapore) and ZO Pvt. Ltd. as accused.
The agency has alleged that these overseas entities were used to launder proceeds of crime and route funds through shell structures, adding an international dimension to the case.
WinZO, once one of India’s most downloaded real-money gaming apps, claimed a user base of nearly 25 crore users, largely concentrated in tier-3 and tier-4 cities.
How The Alleged Gaming Manipulation Worked
At the heart of the ED’s allegations is the claim that WinZO’s games were never truly fair or skill-based, despite assurances made to users.
According to investigators, analysis of the company’s game code, third-party developer agreements and internal communications revealed that most real-money games (RMGs) were embedded with bots and AI profiles till December 2023.
From May 2024 to August 2025, the company allegedly changed tactics. Instead of traditional bots, WinZO began using simulated historical data of inactive or dormant players, matching them against real users without their knowledge or consent. These simulated profiles were designed to behave like human players, making detection nearly impossible.
Internally, the company reportedly used misleading labels such as EP, PPP and Persona to conceal the use of bots and simulated players, the ED claimed.
Luring Users With Early Wins, Then Draining Them
The ED has alleged a classic “hook and drain” strategy. New users were allegedly lured with small bonuses and easy wins, often against weak bots, and allowed to withdraw small amounts to build trust.
Once users increased their stakes, hard bots were systematically deployed, resulting in consistent losses for genuine players. According to the agency, real users lost to bot-controlled profiles and suffered losses totalling ₹734 crore.
In many cases, users who did manage to win at higher stakes were allegedly blocked from withdrawing their winnings due to restrictive mechanisms, forcing them to continue playing and lose more money.
₹47 Cr User Money Withheld After Gaming Ban
India banned real-money gaming apps in August 2025, but the ED claims WinZO failed to return ₹47.66 crore worth of legitimate user winnings and deposits even after the ban came into force.
Between FY22 and FY26, the agency estimates that WinZO generated ₹3,522.05 crore in proceeds of crime, primarily through commissions charged on manipulated games.
Mental Distress, Suicidal Tendencies Alleged
In a particularly troubling allegation, the ED said electronic evidence seized during raids suggested that WinZO’s gaming model caused severe financial and mental distress among users. Some players reportedly experienced extreme psychological pressure and suicidal tendencies after incurring heavy losses.
The platform’s user base was largely from economically vulnerable regions, raising concerns about exploitation through digital gaming platforms.
Credits: Medial
Arrests, Bail And What Lies Ahead
The ED had conducted raids at multiple locations linked to WinZO and arrested its promoters last year. While Paavan Nanda remains in custody, Saumya Singh Rathore has been granted bail.
With the chargesheet now filed, the case moves into the trial phase. The outcome could set a landmark precedent for India’s gaming industry, which has been grappling with regulatory uncertainty, bans, and rising scrutiny.
As authorities tighten the noose around online gaming platforms, the WinZO case is likely to shape the future of digital gaming, compliance, and user protection in India.
