ED Alleges Winzo Gaming Generated Rs 3,500 Crore Proceeds of Crime

The Enforcement Directorate (ED) has accused the Real Money Gaming application operated by M/s Winzo Private Limited of generating proceeds of crime exceeding Rs 3,500 crore. The allegation is part of a prosecution complaint filed against the company, its directors, and subsidiaries in India and the United States.

Failure to Return User Winnings and Deposits

According to an ED statement issued on Sunday, Winzo failed to return legitimate user winnings and deposits totaling Rs 47.66 crore despite a ban on Real Money Gaming (RMG) imposed by the Union Government.

The agency states that from the financial year 2021-22 to August 22, 2025 (FY 2025-26), Winzo amassed total proceeds of crime amounting to Rs 3,522.05 crore.

Prosecution Complaint and Investigation

The ED’s prosecution complaint claims that Winzo and the accused parties knowingly generated, acquired, possessed, used, concealed, and attempted to present the proceeds of crime as legitimate assets.

Investigative action was initiated following multiple First Information Reports (FIRs) filed in Karnataka, Rajasthan, Delhi, and Haryana.

Searches at locations associated with Winzo and its directors were conducted in November of the previous year. Winzo challenged these raids in the Karnataka High Court, labeling them as “illegal” and seeking to unfreeze assets.

Seizure of Assets

Post-search operations led to the seizure of movable assets valued at approximately Rs 690 crore. These included bank balances, payment gateway funds, mutual funds, bonds, fixed deposits, and cryptocurrency.

Operations of Winzo’s Real Money Gaming Platform

Winzo offers a Real Money Gaming platform through its mobile app, featuring over 100 games and an estimated user base of around 25 crore individuals, mainly from Tier 3 and Tier 4 cities.

The company charged commissions on user betting amounts and assured customers of a transparent, secure, and bot-free gaming experience.

However, the ED’s investigation revealed significant manipulation of the games.

Use of Bots and Manipulation Tactics

Examination of game codes, developer agreements, and internal communications indicated that until December 2023, Winzo used BOTs, artificial intelligence, and algorithmic profiles in the games.

From May 2024 to August 2025, the company reportedly adjusted its tactics by simulating historical match data using dormant or inactive player profiles competing against active users without their knowledge or consent.

The company used terms such as Engagement Play (EP), Past Performance of Player (PPP), and Persona to mask these bot activities.

Impact on Users and Financial Losses

According to the ED, users were initially attracted by small bonuses and easy wins against simple bots, creating a false sense of trust.

As stakes increased, more challenging bots were introduced, resulting in substantial financial losses.

Evidence suggests genuine users lost approximately Rs 734 crore to bot profiles. Higher winnings were often blocked via restrictive withdrawal processes, compelling users to continue playing.

Money Laundering Allegations

The ED also alleges that Winzo laundered illicit profits through shell companies in the USA and Singapore.

  • Around USD 55 million was transferred overseas under the pretense of Overseas Direct Investment.
  • Rs 230 crore was redirected to an accused subsidiary as “Loans from Holding Company” without legitimate business justification.
  • An additional Rs 150 crore was attempted to be funneled abroad but was blocked due to the failure to submit required audit and utilization certificates.

Ongoing Scrutiny of Real Money Gaming Sector

This case is unfolding amid increased scrutiny of the Real Money Gaming sector by regulatory and investigative agencies in India.

Key Takeaways

  • Winzo Private Limited is accused of generating over Rs 3,500 crore in proceeds of crime through its gaming app.
  • The company allegedly manipulated games using bots and artificial intelligence, causing significant losses to genuine users.
  • Assets worth approximately Rs 690 crore have been seized by the Enforcement Directorate.
  • Money laundering schemes involving shell companies in the USA and Singapore were uncovered.
  • The investigation reflects wider regulatory scrutiny of the Real Money Gaming industry in India.