Highlights
- The WinZO case centers on secret algorithms used to mislead users and withhold funds.
- ED arrested WinZO co-founders for alleged money laundering and using bots against players.
- Authorities froze assets and flagged suspicious offshore transfers following the gaming ban.
In a massive development that has shaken the Indian real-money gaming sector, the Enforcement Directorate (ED) has arrested Saumya Singh Rathore and Paavan Nanda, the co-founders of the gaming platform WinZO. The arrests were made in Bengaluru on Wednesday following a marathon questioning session regarding a money laundering investigation. The founders were subsequently produced before a local court, which granted the agency one-day custody to continue the interrogation.
This crackdown comes just months after the government implemented a nationwide ban on real-money gaming in August 2025.
For the gaming community, the most shocking aspect of the investigation involves allegations of unfair gameplay and deception. The ED has accused WinZO 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."
According to the agency, the company deployed a secret algorithm known as ‘PPP’ (Past Performance of Player) to pit human players against automated bots. Investigators estimate that the company generated illicit gains of around ₹177 crore over the last 14 months by misleading players into believing they were competing against real opponents.
What is the WinZO money laundering case?
The financial probe has also highlighted serious concerns regarding the safety of user funds. The primary charge against the platform is the illegal withholding of ₹43 crore that belonged to gamers. The ED alleges that the company also prevented or limited users from withdrawing money from their wallets and failed to refund these amounts even after the ban on real-money gaming came into effect on August 22, 2025.
In response to these irregularities, the ED has frozen assets worth approximately ₹505 crore belonging to WinZO, including bank balances, fixed deposits, and mutual funds. When accounting for associated entities like Gameskraft, the agency noted that deposits worth a collective ₹523 crore have been frozen under the Prevention of Money Laundering Act (PMLA).
The investigation has further flagged suspicious international financial movements, suggesting the company tried to move money offshore. The ED alleges that WinZO transferred roughly $55 million (approximately ₹489.9 crore) to a US-based entity, WinZO US Inc. Investigators described this US entity as a shell company that handled financial activities but was controlled entirely from India.
Furthermore, despite the domestic ban, the agency found that WinZO continued to operate real-money games in countries like Brazil, the US, and Germany using the same India-based infrastructure.
In the wake of the arrests, a WinZO spokesperson maintained the company’s innocence. In a statement, the company said that fairness and transparency are core to their platform and that they are cooperating fully with the investigating agency.
They emphasized that their focus remains on protecting users and ensuring a secure experience. However, the ED's findings, including allegations of manipulated KYC information and the misuse of PAN cards, signal a zero-tolerance approach from authorities toward predatory financial practices in the gaming industry.
