MediaNama’s Take: The allegations levied against Gameskraft and WinZO that these platforms rigged the algorithm of their apps will further erode users’ trust in Indian online gaming companies. Furthermore, the findings of the Enforcement Directorate (ED) revealed that promoters of both companies own crypto wallets, raising suspicions of money laundering through cryptocurrencies. This should worry both the users and government authorities, in particular the Reserve Bank of India (RBI).
The terms “open”, “semi-closed” and “closed” do not formally apply to crypto wallets in the Indian legal context in the same way they do to rupee wallets. Cryptocurrencies are classified as Virtual Digital Assets (VDAs) under the Income Tax Act, 1961, and are not recognised as legal tender or currency by the government or RBI. This has, alarmingly, created a regulatory grey zone. The central bank must clarify why it resists legislation to regulate cryptocurrencies.
In addition, we have seen how difficult it is to recover funds lost to crypto-related fraud. Think of the infamous WazirX hack that resulted in a loss of over $230 million in crypto assets. The absence of crypto regulation has left millions of such victims in the lurch.
Further, the ED raids add to the growing list of troubles for Gameskraft and WinZo, which are still reeling from the news of India’s real-money gaming (RMG) ban. Both platforms have halted their RMG operations, with Gameskraft also embroiled in a fraud scandal related to its former CFO Ramesh Prabhu.
What’s the News?
The Bengaluru zonal office of the Enforcement Directorate (ED) on Tuesday conducted raids at the offices of online gaming companies Gameskraft and WinZO in Delhi NCR and Bengaluru, ANI reported.
The search was carried out at a total of 11 premises, out of which five are located in Bengaluru, four in Delhi and two in Gurugram. Citing officials, the report suggested that corporate offices of these companies as well as residences of their top executives were raided.
According to multiple FIRs lodged by victims, these gaming companies allegedly rigged the app’s algorithm, putting players at a disadvantage. During the raids, ED sleuths also uncovered that promoters of Gameskraft and WinZO own crypto wallets, raising suspicion of money laundering through cryptocurrencies.
Gaming Platforms Hit Hard By India’s RMG Ban
The ED raid comes months after the Centre imposed a blanket ban on real-money games (RMG) in the country. Following the introduction of the Promotion and Regulation of Online Gaming Act, 2025, several platforms shut down their real-money operations, which include Gameskraft, WinZO, Dream 11, Mobile Premier League (MPL) and Zupee, among others.
To navigate India’s RMG ban, some gaming platforms have either entered newer markets or turned to alternate revenue streams. For instance, Dream Sports, the parent company of fantasy sports company Dream11,
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