ED Raids Gameskraft, WinZO Offices Over Complaints Of Algorithm Rigging

Centre Seeks Transfer Of All Pleas Challenging Gaming Act To SC

SUMMARY

ED carried out searches at the offices of Gameskraft and WinZO across Bengaluru, Delhi and Gurugram today

The action followed FIRs from users who claimed that the gaming platforms manipulated their algorithms to put players at a disadvantage

The investigators also found crypto wallets allegedly linked to promoters, raising suspicion of possible laundering through cryptocurrencies

The Enforcement Directorate (ED) carried out searches at the offices of GamesKraft and WinZO across Bengaluru, Delhi and Gurugram today.

According to an ANI report, the action followed FIRs from users who claimed that the gaming platforms manipulated their algorithms to put players at a disadvantage.

The agency searched 11 locations, including corporate offices and the homes of senior executives, according to the report. The investigators also found crypto wallets allegedly linked to promoters, raising suspicion of possible laundering through cryptocurrencies, the report added.

Inc42 has reached out to Gameskraft and WinZO for comments on development. The story will be updated on receiving their responses.

The development follows India’s recent legislative overhaul of the online gaming sector. In August 2025, the government implemented a blanket ban on real-money online games, via the Promotion and Regulation of Online Gaming Act, 2025, where users deposit funds in hopes of monetary winnings.

The law caps a three-year progression of rising scrutiny, beginning with state-level bans, followed by the imposition of a 28% GST in 2023, and culminating in the Supreme Court’s endorsement of the prohibition.

The result has been near total sector contraction, with most of the companies shutting their gaming operations and laying off hundreds of employees.

Gameskraft, which operated apps like Rummyculture, Pocket 52, Ludo Culture, among others, let go of more than 400 employees after the ban, following an initial round of 120 exits in September.

WinZO, which hosts over 100 games, has operations in India, the US and Brazil. Following the real-money gaming ban, it said it plans to take Indian gaming and technology worldwide. It also forayed into the short video segment with the launch of ZO TV.

The wider industry saw similar moves, with Games24X7 firing around 500 employees, MPL laying off about 60% of its workforce, and several platforms either pivoting to new models or moving operations overseas.