The Enforcement Directorate (ED) carried out searches on the offices and the senior executives’ online gaming platforms Gameskraft and WinZO across Bengaluru, Delhi and Gurugram on November 18, according to reports from CNBC-TV18.
A total of 11 premises were covered, five in Bengaluru, four in Delhi and two in Gurugram, including the companies’ corporate offices and the homes of top leadership such as CEOs, COOs and CFOs.
The action stems from FIRs filed by users, who alleged that the platforms manipulated their algorithms to disadvantage players. The report also suggested that initial findings indicate promoters of the companies owned crypto wallets, suggesting potential money laundering through cryptocurrencies.
The searches come months after the government notified its new online gaming framework, which includes a blanket ban on real-money online games involving deposits with the expectation of winnings. Since then, both Gameskraft and WinZO have discontinued their real-money gaming operations in India.
Gameskraft’s ongoing troubles
Gameskraft, which operated the online rummy app Rummyculture, is also dealing with an internal fraud case. As reported by Moneycontrol in September, the company has alleged that its former CFO Ramesh Prabhu, siphoned off Rs 270.43 crore over nearly five years. An FIR was filed at the Marathahalli police station in Bengaluru.
WinZO’s current footprint
WinZO currently offers over 100 games in 15 Indian languages developed by third-party studios worldwide, and also operates in the US and Brazil.
The ED’s investigation is ongoing.
