What Happened with the Online Real Money Gaming Scam Involving WinZo App?
Synopsis
In a significant crackdown on online gaming fraud, the ED has frozen Rs 192 crore related to WinZo Pvt Ltd's illicit activities. This investigation reveals shocking details about deceptive gaming practices and misuse of user funds, raising concerns about the safety of online gaming platforms.
Key Takeaways
ED has frozen Rs 192 crore linked to WinZo Pvt Ltd.
Investigation reveals fraudulent practices in online gaming.
BOTs were used to mislead players.
Proceeds of Crime estimated at Rs 802 crore .
Funds transferred overseas under false pretenses.
Bengaluru, Jan 1 (NationPress) The Enforcement Directorate (ED) from the Bengaluru Zonal Office has frozen Proceeds of Crime (PoC) amounting to nearly Rs 192 crore associated with ZO Games Pvt Ltd, an Indian subsidiary fully owned by WinZo Pvt Ltd, amid an investigation into an online real money gaming scam.
On Thursday, the ED issued an official statement indicating that a search operation was conducted at the office of the accounting firm for Winzo Pvt Ltd under Section 17 of the Prevention of Money-Laundering Act (PMLA), 2002 on December 30, 2025. WinZO Pvt. Ltd. operates online real money gaming services via its application – WinZO.
During this search, the Proceeds of Crime (PoC) held by ZO Games Pvt Ltd., valued at approximately Rs 192 crore, were frozen in the form of bank balances, fixed deposits, and mutual funds, in accordance with Section 17 (1A) of the PMLA, 2002,” the ED confirmed.
Previously, the ED executed search and seizure operations at Winzo Pvt Ltd’s office and the residence of its director on November 18, 2025.
Evidence collected during these investigations indicated that the company was involved in illicit activities, using BOTs/AI/Algorithms (referred to as PPP/EP/Persona) to mislead customers into believing they were playing against real individuals in money games. The ED highlighted that Winzo also imposed restrictions on withdrawals of funds from customers' wallets.
Winzo Pvt Ltd reportedly earned PoC through ‘Rake Commission’ from matches played by the BOTs against actual players on the Winzo App. The company accumulated approximately Rs 177 crore from BOTs between May 2024 and August 2025, and around Rs 557 crore from April 2022 to December 2023. Additionally, they retained customer funds totaling Rs 43 crore, even after the Union Government banned Real Money Games.
“To date, the investigation has uncovered that Winzo Pvt Ltd has generated PoC of about Rs 802 crore,” stated the ED.
Furthermore, a portion of these proceeds has allegedly been transferred abroad to the USA and Singapore disguised as overseas investments. Funds amounting to USD 54 million have been deposited in their USA bank account under the name ‘WINZO US Inc.’, which has been identified as a shell company, as all operations and daily business transactions are conducted from India,” the ED disclosed.
Ongoing investigations are continuing.
Point of View
It is essential to remain vigilant about the implications of such scams on the online gaming sector. This incident not only highlights the risks associated with unregulated platforms but also calls for stricter oversight to protect consumers. We stand with our audience in demanding transparency and accountability from gaming companies.
NationPress
10 May 2026
Frequently Asked Questions
What is the main issue with WinZo Pvt Ltd?
The main issue involves allegations of fraudulent practices in online gaming, where users were misled to believe they were playing against real opponents while actually engaging with BOTs or algorithms.
How much money has been frozen by the ED?
The Enforcement Directorate has frozen approximately Rs 192 crore linked to ZO Games Pvt Ltd, a subsidiary of WinZo Pvt Ltd.
What actions has the ED taken against WinZo?
The ED has conducted search operations, frozen assets, and is investigating the company's financial activities under the Prevention of Money-Laundering Act.
What are BOTs in online gaming?
BOTs refer to automated software that simulates human players in games, which in this case misled users into thinking they were competing against real players.
What is the current status of the investigation?
The investigation is ongoing, with further probes into the company's financial dealings and the movement of funds overseas.
