The Enforcement Directorate (ED) carried out search operations at the offices of online gaming companies Gameskraft and WinZO across Bengaluru, Delhi, and Gurugram on November 18. According to sources cited by ANI, officials searched a total of 11 locations – five in Bengaluru, four in Delhi, and two in Gurugram — including corporate offices and residences of senior executives.
ED Raids Gameskraft and WinZO Over Algorithm Tampering
The raids were initiated following multiple complaints from users who alleged that these gaming platforms manipulated their in-app algorithms to reduce player winnings and give the companies an unfair advantage. During the searches, investigators reportedly discovered cryptocurrency wallets linked to the promoters, indicating a suspected money laundering trail through digital assets.
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The action comes only months after the Indian government introduced a new law imposing a nationwide ban on online money-based gaming – prohibiting any platform where users deposit funds with the intent of earning monetary rewards.
Gameskraft, known for operating popular rummy app Rummyculture, has recently faced a separate controversy involving its former CFO, Ramesh Prabhu. The company accused Prabhu of embezzling over Rs 270 crore over a five-year period, following which an FIR was registered at the Marathahalli police station in Bengaluru.
Meanwhile, WinZO hosts more than 100 games in multiple Indian languages, featuring content from global developers. While the company has expanded operations to the United States and Brazil, it halted its real-money gaming business in India after the regulatory crackdown on cash-based gaming platforms.
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