The Enforcement Directorate (ED) has alleged that real-money gaming platform WinZO caused losses of approximately Rs 734 crore to genuine users by deploying bots and simulated players, according to a prosecution complaint filed before a Prevention of Money Laundering Act (PMLA) court in Bengaluru. Additionally, the chargesheet names Winzo Pvt. Ltd. as the principal accused, along with its directors Paavan Nanda and Saumya Singh Rathore, and its wholly owned subsidiaries in India, the US, and Singapore.
Filed on January 23, 2026, the complaint accuses the company and its officials of manipulating gameplay outcomes, resulting in large-scale financial losses to users. Consequently, the ED has charged the accused under Section 3 of the PMLA, read with Section 70, with the offence punishable under Section 4 of the PMLA, alleging the generation, possession and concealment of proceeds of crime.
This chargesheet arrives against a backdrop of sweeping legal change in India’s online gaming landscape. In August 2025, the Parliament passed the Promotion and Regulation of Online Gaming Act, 2025 (PROGA), which received presidential assent later that month, creating a new statutory framework for online gaming and banning all forms of real-money games, defined as any online game where users pay money with the expectation of financial return, regardless of whether they involve skill or chance. The law also empowers authorities to regulate permissible formats such as esports and social games, including blocking services and transactions connected to real-money gaming.
Notably, since its enactment and subsequent implementation from late 2025, government enforcement on real money gaming has escalated, including site blockings and enforcement actions targeting operators that fall under the ban.
Allegations Against WinZO In Detail
The ED has alleged that WinZO manipulated real-money games hosted on its mobile application, which claims a “user base of around 25 crore users, largely from Tier-3 and Tier-4 cities”. For providing these services, the company charged a percentage of users’ betting amounts as commission and assured users that its platform was transparent, secure and free from any bots.
However, according to the investigation, analysis of game codebases, third-party developer agreements, and internal communications revealed that until December 2023, WinZO embedded bots, AI, and algorithm-based profiles in its games. Between May 2024 and August 2025, it allegedly began simulating historical match-play data for dormant or inactive players against real users without their knowledge or consent. These bots were purportedly referred to as EP (Engagement Play), PPP (Past Performance of Player) and Persona to suppress and conceal their use.
Furthermore, the ED has alleged that users were initially allowed to win small amounts against easier bots, including withdrawals, before harder bots were deployed at higher stake…
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