The ongoing investigation into real money gaming platform WinZO intensified Wednesday after the Enforcement Directorate took its founders, Saumya Singh Rathore and Paavan Nanda, into custody on alleged money laundering charges. The arrests come shortly after the agency carried out extensive searches across Bengaluru, Delhi, and Gurugram and froze assets worth more than Rs 523 crore linked to the platform.
According to officials familiar with the matter, as reported by the Indian Express, the two were produced before a judge soon after their arrest. A source confirmed, “Saumya and Paavan, directors of Winzo Games Pvt Ltd, were arrested yesterday, and they were produced before the home office of the Hon’ble judge. The court has given them ED custody and directed the agency to produce them at 11:30 am today, for detailed arguments, on the remand application filed by the department.”
ED Says Frozen Assets Include Bank Funds and Investments
The Enforcement Directorate previously issued a statement outlining the scale of the suspected financial wrongdoing. The agency stated, “WinZO Games Pvt. Ltd. is into the business of online real money gaming services through its app – WinZO. During the search, proceeds of crime (POC) possessed by WinZO Games Pvt. Ltd., worth around Rs 505 crore, were frozen in the form of bank balances, bonds, FDRs, and mutual funds under section 17 (1A) of the Prevention of Money-Laundering Act (PMLA), 2002.”
The agency launched its probe based on several FIRs accusing the platform and associated entities of cheating, misuse of financial documents, impersonation, and blocking user accounts. An ED spokesperson said, “It is also alleged in the FIRs that the complainants’ KYC was misused by WinZO and others, and the complainants have suffered substantial loss due to fraudulent activities and cheating by WinZO and others.”
Allegations Include Global Real Money Gaming Operations
Investigators say the platform allegedly continued to operate real money gaming features even after the central government banned them. According to the ED, the firm also used the same platform to offer real money gaming services in international markets.
The spokesperson added, “Probe conducted by ED has revealed that WinZO company is operating real money games (RMGs) in foreign countries such as Brazil, USA and Germany, etc, from India (on the same platform used by the Indian entity). Even after the ban of RMGs by the Centre, an amount of Rs 43 crore was still held by the company without refunding to the gamers/customers.”
Users Allegedly Matched With Software Instead of Real Players
One of the more serious allegations relates to how the platform paired players during games. Investigators claim users were not playing against real participants.
As per the ED, the platform “was engaged in criminal activities and unscrupulous practices; customers were made to play with algorithms/software without being made aware that they were playing with algorithms/software, not with humans, in real money games.”
WinZO’s site (screenshot above), however, claims that it never matches players with bots, only “real users.”
WinZO Says It Is Cooperating With Investigators
Following the initial enforcement raids earlier this week, WinZO issued a response asserting that it follows the law. The company stated that it complies with “all applicable laws,” and has been cooperating with the investigation.
The arrested founders are expected to be produced again before the court as the ED seeks continued custody while expanding its inquiry into the company’s financial practices and alleged misrepresentation of gaming processes.
