The Enforcement Directorate (ED) has arrested three founders of online gaming company Gameskraft Technologies Pvt. Ltd. in connection with a money laundering investigation linked to alleged cheating and fraud involving real-money gaming platforms. The arrests were made after the agency conducted coordinated raids across 17 locations in Karnataka and the Delhi-NCR region under the Prevention of Money Laundering Act (PMLA).
According to officials, the founders arrested include Prithvi Raj Singh, Deepak Singh, and Vikas Taneja. Deepak Singh and Prithvi Raj Singh were reportedly taken into custody from the Delhi-NCR region, while Vikas Taneja was arrested in Bengaluru and later produced before a local court. The ED stated that the case was registered following multiple police FIRs alleging cheating, fraud, and financial irregularities connected to Gameskraft’s operations.
The investigation is reportedly tied to alleged online betting and gaming-linked fraud estimated at nearly Rs 1,000 crore. During the raids, ED officials seized several documents and electronic records that are now being examined as part of the wider money laundering probe. Authorities also claimed that some FIRs filed against the company involved allegations linked to financial distress and suicides committed by individuals allegedly affected by online gaming activities.
Gameskraft was one of India’s biggest real-money gaming companies and operated popular platforms including RummyCulture, Pocket52, and Rummytime. However, the company had suspended several of its operations in 2025 after stricter online gaming regulations and taxation rules began impacting the industry.
Karnataka High Court Seeks ED Response on Arrests:
Following the arrests, the founders approached the Karnataka High Court challenging the legality of the ED’s action. The High Court has now sought a formal response from the Enforcement Directorate regarding the petitions filed by the accused founders. Reports stated that the founders questioned the grounds of arrest and the manner in which the investigation was conducted.
The case has become one of the most closely watched investigations in India’s online gaming industry because it comes amid increasing regulatory scrutiny of real-money gaming platforms. Over the past two years, gaming firms have faced investigations related to taxation, alleged betting activities, financial compliance, and anti-money laundering laws.
Gameskraft has already been dealing with multiple legal and financial challenges. In September 2025, the company filed a complaint against its former Chief Financial Officer Ramesh Prabhu over alleged unauthorised transactions and financial irregularities amounting to more than Rs 270 crore. The company later acknowledged a one-time accounting adjustment linked to those transactions in its financial statements.
Industry experts believe the latest ED action could significantly impact investor confidence in India’s online gaming sector, especially as companies continue to battle uncertainty around taxation and regulatory approvals. The Supreme Court is also currently examining cases involving GST notices worth nearly Rs 2.5 lakh crore issued to gaming firms, including Gameskraft.
Online Gaming Industry Faces Regulatory Pressure:
The investigation against Gameskraft comes at a time when India’s online gaming industry is undergoing major policy changes. The introduction of a 28% GST regime on online gaming platforms significantly increased tax liabilities for several companies and forced many operators to restructure operations or reduce spending.
Gameskraft itself reported a 25% decline in net profit during FY25, while tax-related expenses rose sharply because of the revised GST framework. Despite revenue growth, the company said rising compliance costs and legal uncertainties affected profitability.
The ED’s latest action is expected to intensify discussions around regulation of online gaming platforms, particularly those involving real-money transactions. Several policymakers and state governments have already called for stricter oversight of betting-style gaming applications and stronger consumer protection mechanisms.
Social Media Reactions After ED Raids:
Several media platforms and industry commentators reacted online after reports emerged regarding the arrests and raids linked to Gameskraft.
“ED registers a money laundering case against Gameskraft Technologies, with three founders arrested after multi-city raids.”~CNBC-TV18
“ED arrests three founders of Gameskraft in PMLA case linked to alleged online gaming fraud.”~Moneycontrol
“ED conducts raids at 17 locations linked to Gameskraft group; founders arrested under PMLA.”~News On AIR
The investigation remains ongoing, and officials indicated that additional questioning, forensic analysis of financial records, and examination of digital evidence are expected in the coming weeks. The case is likely to remain under close watch as India’s gaming industry continues facing mounting legal and regulatory scrutiny.
