Indian probe agency raids Gameskraft and WinZO offices
The Enforcement Directorate (ED), a law enforcement and economic intelligence agency of the Government of India raided the offices of online gaming operators Gameskraft and WinZO on 18 November, searching 11 locations across Bengaluru, Delhi and Gurugram. The action followed complaints filed by players who claimed the platforms manipulated game algorithms.
The raids took place soon after the union government enforced the Promotion and Regulation of Online Gaming Act on 1 October, which introduced a blanket ban on online money-based games that require users to deposit funds in exchange for potential winnings. Following the law, Gameskraft and WinZO halted their real-money operations in India.
Raids across multiple locations
According to local media Moneycontrol, five premises were searched in Bengaluru, four in Delhi and two in Gurugram. The searches covered corporate offices and the homes of senior executives. Officials examined financial records, digital devices and internal communication linked to the companies’ operations.
FIRs filed by victims alleged that the apps were designed in a way that placed players at a disadvantage. Sources told Moneycontrol investigators also found that promoters held cryptocurrency wallets, raising suspicion of possible laundering through digital assets. The ED is analysing transaction trails and wallet activities to verify these claims.
Gameskraft cuts over 400 jobs
Recently, Gameskraft has laid off more than 400 employees, up from around 120 earlier, as part of an organisational restructuring, citing India’s new Promotion and Regulation of Online Gaming Act, 2025 (PROGA) as the main reason. The law, which bans all cash-based online games, has forced several gaming firms to shut down or scale back operations, marking one of the toughest regulatory phases for the country’s gaming industry.
Gameskraft confirmed that over 400 employees across departments were impacted during a restructuring exercise aimed at maintaining business continuity under the new regulatory environment.
“As part of the organisational restructuring undertaken, approximately 400+ employees across teams and functions were impacted after careful deliberation. The decision was driven by business continuity considerations following the implementation of the Promotion and Regulation of Online Gaming Act, 2025,” the company said in a statement.
Gameskraft clarified to SiGMA News, “This is not a recent development but part of a previously concluded company-wide restructuring, which was initiated in response to the evolving regulatory and business landscape.”
What the new law covers
The Promotion and Regulation of Online Gaming Act 2025 introduces a nationwide ban on online money games. This includes games of skill as well as games of chance if they involve financial stakes. Offering or participating in such games is classified as a criminal offence. These offences are cognisable and non-bailable.
The law also prohibits advertisements, promotions and banking support related to money-based online games. This measure aims to cut financial backing and visibility for such platforms.
While service providers, promoters, advertisers and financial supporters will face legal consequences, individual players will not be penalised for participating in money-based games, according to government sources.
The legislation distinguishes between money-based games and non-harmful gaming. It seeks to give legal recognition to e-sports and social online games, which are expected to receive greater support under the Act. The government says the move will provide a framework to promote skill-based competitive gaming and digital entertainment without the risks associated with wagering.
Stay ahead of iGaming’s biggest stories with SiGMA’s Top 10 News countdown. The world’s biggest iGaming community brings you weekly insights and subscriber-only offers. Join HERE today.
