The Enforcement Directorate (ED) has seized assets worth ₹530 crore from Bengaluru-based online gaming firm Gameskraft Technologies, in connection with an alleged ₹1,154 crore fraud perpetrated against players through its real-money rummy platforms. The agency arrested three company directors and uncovered evidence of systematic bot deployment, geo-location tampering, and money laundering across foreign entities and domestic instruments.

What Was Seized

The ED's Bengaluru Zonal Office conducted search and seizure operations on 7 May and 13 May 2025 at office and residential premises of Gameskraft Technologies and its directors and key employees in Bengaluru and the National Capital Region. The searches resulted in the freezing of bank balances, payment gateway balances, mutual funds, bonds, and fixed deposits valued at ₹526.49 crore. Separately, gold and diamond jewellery weighing 2.3 kg, valued at ₹3.5 crore, and cash of ₹11 lakh were also seized, along with incriminating documents and electronic records.

How the Alleged Fraud Worked

Gameskraft Technologies operates real-money rummy games through its mobile application under brands including RummyCulture, RummyPrime, Playship, RummyTime, and a B2B platform called RummyCorner. The company charges a commission of 10 to 15 per cent on user stakes and wagering amounts.

According to the ED, the investigation revealed that the company deployed automated programmes — commonly known as bots — against real users without their knowledge or consent. Users were initially allowed to win small amounts and withdraw winnings to build a false sense of trust. Once they began wagering larger sums, bots were deployed systematically, resulting in significant financial losses. Evidence showed that genuine users lost ₹1,154 crore to bot user IDs, according to the agency's findings.

The ED also found that the company had tampered with geo-location data to provide services in states where online real-money gaming is banned — specifically Telangana, Andhra Pradesh, and Tamil Nadu. Gameskraft's total user base is reportedly around 3 crore across India.

Human Cost of the Alleged Fraud

Evidence gathered from user grievances submitted through the company's own application and front desk revealed severe financial distress among players, particularly those from economically weaker backgrounds. The ED stated that some users reportedly experienced extreme mental distress and suicidal tendencies as a result of the losses incurred.

The investigation was initiated on the basis of multiple First Information Reports (FIRs) filed across the country for cheating offences under the Indian Penal Code, 1860.

Arrests and Money Laundering Trail

Three directors of the company — Prithvi Raj Singh, Vikas Taneja, and Deepak Singh Ahlawat — were arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. The ED said the proceeds of crime were laundered through investments in foreign entities, dividend payments to shareholders, mutual funds, bonds, and movable and immovable properties.

Broader Implications for Online Gaming Regulation

This case arrives amid ongoing regulatory debate around India's online real-money gaming sector, which has expanded rapidly but remains unevenly governed across states. The Gameskraft case is among the largest fraud investigations in the domestic online gaming space and is likely to intensify calls for a unified federal framework. With 3 crore registered users and operations spanning banned jurisdictions, the scale of alleged circumvention raises questions about the adequacy of existing platform-level compliance mechanisms.