The Enforcement Directorate is raiding two online gaming firms — Winzo and Gamezkraft (pocket52.com) — operating in Bengaluru and Delhi, respectively, following complaints of “rigged algorithms” to disadvantage players, ANI reported. As many as 11 locations — five in Bengaluru, four in Delhi and two in Gurgaon — of both Winzo and Gamezkraft are being seized by enforcement agencies. The raids are being conducted by the ED Bengaluru Zonal Office.
According to reports, ED raids are being conducted at the offices and headquarters of the CEO/COO/CFO of WinZO and Gamezcraft Search in connection with allegations of rigged algorithms.
The search also revealed that the promoters hold crypto wallets, suggesting possible laundering through cryptocurrencies.
“In the FIRs filed by the victims, it is stated that these gaming companies have manipulated the algorithm of the application and disadvantaged the players. During the search, it was revealed that the Promoters are in possession of crypto wallets, which indicates laundering through cryptocurrencies,” ANI quoted ED officials as saying.
Online gaming platforms suspend real money gaming services
Meanwhile, several online gaming platforms such as Dream11, My11Circle, WinZO, Zupee and PokerBaazi (backed by Nazara Technologies) have suspended their real money gaming services following the implementation of the Online Gaming Promotion and Regulation Act from October 1.
“We have engaged with the industry, we have had many discussions with them, we have been with them for the last almost three years. After the bill was passed, we again talked to them, we also talked to the banks and virtually every possible stakeholder and finalized the rules,” IT Minister Ashwini Vaishnaw was quoted as saying by PTI.
Online gaming company Gameskraft announced in August that it will not challenge the newly introduced Online Gaming Promotion and Regulation Act of 2025. Instead, the company plans to focus on shaping its future strategy in accordance with the updated law, the report said. In a statement, Gameskraft added that it has discontinued all real money “Gameplay” and “Add Cash” features on its Rummy platforms as of August 21.
A company spokesperson said: “As a responsible and law-abiding legal entity, Gameskraft has no intention of pursuing any legal challenge to the legislation. We fully respect the legislative process and remain committed to acting within the law… Gameskraft remains committed to constructive dialogue with policymakers and stakeholders, responsible innovation, player protection and regulatory harmonization.”
Gameskraft said it has settled all regulatory obligations and implemented measures to protect its employees, partners, vendors and service providers.
The company further said it will now focus its attention on identifying new prospects that fit within the changing legal framework.
“Our cross-functional teams are actively exploring new opportunities and future-ready solutions… to unlock the full potential of India’s digital gaming economy,” the spokesperson added.
