The Enforcement Directorate raided WinZO’s accounting firm on December 30, freezing Rs 192 crore in bank balances, fixed deposits and mutual funds held by the gaming app’s Indian subsidiary ZO Games Pvt Ltd. This latest action pushes total frozen assets in the money laundering probe past Rs 690 crore, following earlier seizures and arrests. ED’s Bengaluru Zonal Office hit the auditor’s premises under PMLA provisions, nabbing “proceeds of crime” tied to alleged scams in real money gaming. WinZO, a popular app for online games like Ludo and Snakes & Ladders, faces claims of rigging matches with bots and algorithms without telling users they weren’t playing real people. The agency says this “bot fraud” let the company rake in Rs 177 crore from May to August 2025 alone, plus Rs 557 crore from April 2022 to December 2023 through rake commissions on fake games.
Back in November, ED nabbed WinZO co-founders Paavan Nanda and Saumya Singh Rathore after raids on the company’s Delhi and Gurugram offices. Those searches froze Rs 523 crore across WinZO, Gameskraft and Pocket52, plus grabbed phones, laptops and data backups. Now the auditor link shows how funds moved – layered through shells, parked in deposits and even shipped overseas to the US and Singapore as “investments.” ED pegs overall illicit gains at Rs 802 crore, with WinZO holding Rs 43 crore in user wallets even after the government’s late 2024 ban on real money online gaming.
Bot Matches and Withdrawal Blocks:
Prosecutors allege WinZO tricked users into betting against bots, AI or software called PPP/EP/Persona, pocketing rake without fair play. Real players lost to rigged opponents, while the app blocked or capped withdrawals to keep cash trapped. Even post-ban, Rs 43 crore sat in wallets, generating more “proceeds.” Funds flowed to foreign entities under fake deals, dodging taxes and trails. The November raids on founders’ homes and offices turned up evidence of these manipulations, leading to arrests under PMLA for laundering gains from scheduled offences like cheating. ED calls it a classic case of gaming platforms flouting rules after the August 2025 Online Gaming Act clamped down on real money bets.
WinZO challenged earlier freezes as “disproportionate,” but the probe rolls on with auditor searches filling gaps. ZO Games, fully owned by WinZO Pvt Ltd, held the latest frozen chunk, showing subsidiaries shuffled dirty money. Regulators now eye escrow accounts too – Gameskraft alone had Rs 30 crore locked post-ban, Rs 18.57 crore across eight entities.
Gaming Crackdown Hits Multiple Firms:
After past raids on Gameskraft, Pocket52, and WinZO, this bust expands ED’s reach on real money gaming apps. At that time, the total freezes exceeded Rs 505 crore, and with the Rs 192 crore haul, they are now close to Rs 700 crore. The industry flourished before the ban, but it was criticized for its potential for addiction, unfair odds, and money laundering. Platforms scrambled after August 2025 regulations, but the ED claims some continued to run illegal operations underground. The arrests of the founders indicate that there would be no kid gloves; Nanda and Rathore are being held in court as the evidence grows. FEMA is also concerned about overseas transfers to shells in the US and Singapore, as repatriation demands are imminent. Auditors are currently being scrutinized for helping layering, a pattern in PMLA instances, or ignoring warning signs. Growth was financed by WinZO’s earnings from bot victories, which totaled Rs 734 crore. However, this now fuels the freeze tally.
Investigation Eyes Overseas Laundering Trails:
When money is sent overseas “under the garb of investments,” the ED looks for evidence of hawala or trade-based money laundering to cover up its origins. Bank funds, FDs, and MFs are all temporarily tied to the Rs 192 crore freeze while it is being decided. With a total PoC of Rs 802 crore, there is potential for further seizures as digital traces come to light. PMLA for money laundering and the IT Act for gaming offenses put gaming companies under dual pressure. WinZO rejects the scale but keeps information about operations. The lawsuit challenges regulators’ control over a once-wild industry now subject to stricter regulations, with founders imprisoned and assets frozen.
