New Delhi: The Enforcement Directorate (ED) on Sunday said it has filed charges against real-money online gaming platform WinZO and its promoters, alleging that users lost ₹734 crore after the company incorporated bots and artificial intelligence tools to manipulate gaming algorithms.
In an official statement, the ED said its zonal office in Bengaluru filed a criminal complaint on January 23 in a special court responsible for hearing cases under the Prevention of Money Laundering Act (PMLA).
The indictment names Winzo Pvt. Ltd., its directors Paavan Nanda and Saumya Singh Rathore and its wholly owned subsidiaries including foreign companies such as Winzo US Inc. (USA), Winzo SG Pte. Ltd. (Singapore) and ZO Pvt. Ltd., as accused.
According to the agency, WinZO operated more than 100 games through its mobile application and had a user base of about 25 million, mostly from Tier 3 and Tier 4 cities.
The Union government banned real money gaming applications in India in August 2025.
The ED alleged that WinZO charged users a commission by deducting a percentage of bet amounts while assuring players that its platform was transparent, secure and bot-free. However, the investigation revealed that a majority of the real money games (RMGs) were rigged.
Analysis of game codebases, third-party developer agreements and internal communications revealed that the RMGs were embedded with bots, AI tools and algorithmic profiles by December 2023, the agency said.
From May 2024 to August 2025, WinZO allegedly changed its modus operandi by simulating historical game data of dormant or inactive users and pitting them against real players without their knowledge or consent.
“To suppress and conceal these unscrupulous acts, the company deliberately resorted to the use of bots and simulated players, using misleading terminologies such as EP (Engagement Play), PPP (Player Past Performance) and Persona,” the ED said.
The agency further claimed that users were initially lured with small bonuses and allowed to win against simple bots, with limited withdrawals allowed to create a false sense of trust. Once users started placing higher bets, harder bots were systematically deployed, resulting in significant financial losses.
As a result, real users suffered losses of around ₹734 crore, the ED claimed, adding that winnings at higher stakes were often blocked by restrictive payout mechanisms, forcing the game to continue.
The ED also alleged that WinZO failed to refund legitimate user winnings and deposits worth ₹47.66 crore even after real money gaming apps were banned last year.
In this way, the agency said, the company generated proceeds of crime worth Rs 3,522.05 crore between financial years 2021-22 and 2025-26 (as on August 22, 2025).
Evidence found on seized electronic devices further suggests that the manipulative gaming structure caused severe financial problems to users, particularly those from economically weaker backgrounds, with some reportedly suffering from extreme psychological distress and suicidal tendencies, the ED said.
The agency also alleged that the proceeds of crime were laundered through shell companies established in the United States and Singapore.
Published on January 25, 2026