Key Moments:
- Authorities extended raids on Gameskraft and WinZO across 11 locations for a second consecutive day
- The new Promotion and Regulation of Online Gaming Act, 2025 imposes a blanket ban on real-money games
- Investigators are probing allegations of money laundering, suspected algorithm manipulation, and cryptocurrency use
Enforcement Directorate Extends Investigations
The Enforcement Directorate (ED), India’s central economic intelligence agency, intensified its clampdown on the online gaming sector as it conducted a second straight day of searches targeting Gameskraft and WinZO. Launched on Tuesday, the operation spanned 11 sites across Bengaluru, Delhi, and Gurugram, focusing on allegations of money laundering, cheating, and irregularities in corporate certification processes.
This escalation comes in the wake of the Promotion and Regulation of Online Gaming Act (PROGA), which took effect on 1 October and enforces a nationwide ban on any games where real money is at stake. Both Gameskraft and WinZO responded by halting their real-money gaming offerings in India.
Spotlight on Certification and Financial Structures
As reported by Storyboard18, ED officials questioned employees, founders, and senior management teams regarding the involvement of gaming federations in certifying documents necessary to open corporate bank accounts. The probe also sought information on Random Number Generator certifications that validate fairness in online games. Authorities are assessing whether these certifications supported practices that may have enabled financial misconduct.
Although the ED has not revealed if more companies are formally under investigation, a senior source disclosed that preliminary inquiries are underway for additional gaming platforms. The full extent of the crackdown remains unclear, but industry insiders anticipate more companies could soon be implicated.
Industry Reaction and Compliance Concerns
Several stakeholders expressed surprise at the breadth of the operation. As reported by Storyboard18, they pointed out that enforcement activities are occurring prior to the official notification of the Promotion and Regulation of Online Gaming Act 2025. Furthermore, companies reportedly faced scrutiny over technical aspects like algorithms and certification protocols, which officials themselves were still examining.
Authorities seized electronic data from offices and homes, copying information from various devices. There were also reports of limited cooperation, with certain firms allegedly withholding information and restricting employee access during the probes.
Crypto and Algorithm Investigations Broaden Probe
According to investigators, the enforcement actions are tied to suspicions of cheating and money laundering involving cryptocurrencies. Officers stated that they discovered promoters possessing crypto wallets, potentially indicating money-laundering activity. The probe is also investigating claims that some platforms manipulated game outcomes. The scope of the inquiry was further expanded by FIRs from users alleging algorithmic tampering.
| Company | Allegations & Actions |
|---|---|
| Gameskraft |
|
| WinZO |
|
| Pocket52 |
|
Overview of the New Regulatory Framework
The Promotion and Regulation of Online Gaming Act, 2025 bans all games involving financial stakes, including both skill-based and chance-based categories when real money is involved. Offering or facilitating these games is now classified as a cognizable and non-bailable criminal offense. The law also prohibits advertisements, promotional content, and financial services linked to such gaming activities, aiming to stifle market growth through these restrictions. According to official sources, penalties are aimed at operators, promoters, advertisers, and financial intermediaries, while individual gamers are shielded from prosecution.
Notably, the Act creates a distinction allowing e-sports and social gaming to operate unimpeded, with the government positioning this move as a way to cultivate digital sports and entertainment sectors while combating illegal gambling.
- Author
Daniel Williams
