The Directorate of Enforcement (ED) has seized assets valued at Rs 590 crore belonging to Winzo Pvt. Ltd. and its subsidiary Zo Pvt. Ltd. under Section 37A of the Foreign Exchange Management Act (FEMA), 1999. The action targets alleged violations related to illegal overseas investments and operations in real-money gaming/gambling. The seized assets include bank accounts, fixed deposits, mutual funds, and bonds held by the companies in India.
According to the ED, Winzo operates a platform hosting real money games and online gambling, offering over 100 games and claiming a user base of approximately 250 million.
The probe revealed that Winzo made Overseas Direct Investments (ODI) totalling USD 54,255,010 (equivalent to about Rs 492 crore) in its foreign subsidiaries — Winzo US Inc. (USA) and Winzo SG Pte. Ltd. (Singapore).
Winzo has been conducting real-money gaming operations, offering games such as Bingo 2p, Bingo Turbo, Ludo, Snakes & Ladders, Mines, Solitaire, Spades, and Blackjack, in countries including Brazil, Germany, and the US through its US-based subsidiary.
However, the ED alleged that these foreign entities lack independent operations. “They do not have any regular employees or separate establishments abroad. Instead, the entire management, day-to-day functioning, gaming infrastructure, and control—including handling of foreign bank accounts and financial operations, are exercised from India by the company’s directors and employees,” the agency said.
The investigation further found that the foreign subsidiaries are engaged in real-money games/gambling activities, which are prohibited under Indian law.
“Following the enactment of the Promotion and Regulation of Online Gaming Act, 2025 (PROG Act, 2025), online money gaming has been banned in India. Consequently, Winzo could not have made overseas investments or continued investments after enforcement of online gaming ban in India,” the ED said.
The agency stated that Winzo is holding foreign currency and income generated from these prohibited activities in the bank accounts of its US and Singapore subsidiaries, in contravention of Section 4 of FEMA, 1999, to the extent of Rs 590 crore.