WinZO founders held in major online gaming laundering case
The Enforcement Directorate (ED), a law enforcement and economic intelligence agency of the Government of India has arrested WinZO founders Saumya Singh Rathore and Paavan Nanda in a money laundering case linked to the company’s online gaming operations. The agency took them into custody in Bengaluru on Wednesday after questioning them at its zonal office. A local court granted the ED one day of custody and the duo will be produced again for further orders, according to news agency PTI.
ED flags alleged breaches after nationwide ban
The ED has claimed that WinZO continued offering real money gaming services even after such platforms were banned nationwide on 22 August 2025. According to the agency, the company did not refund nearly ₹43 crore ($4.3 million) that belonged to players following the ban.
Investigators said gamers took part in contests run by software-driven algorithms instead of competing against real opponents. The agency stated that this was allegedly not disclosed to users. The ED has accused the firm of earning illegal profits from players who lost money in these games during the period in question.
Probe extends to overseas operations and fund movements
The agency has alleged that WinZO operated the same real money gaming platform for users in countries such as Brazil, the United States and Germany while all backend processes were handled from India. Officials said the platform’s international model raised questions about compliance, since key activities were carried out domestically.
Financial investigations revealed several suspected irregularities under the Prevention of Money Laundering Act. During searches at WinZO and another gaming company, Gamezkraft, the agency said it froze assets worth about ₹505 crore. These included bonds, mutual funds and fixed deposits.
The ED further claimed that around $55 million, close to ₹490 crore, connected to WinZO was parked in a shell company based in the United States, although operations and banking decisions were managed from India. Officials alleged that certain funds were also transferred to Singapore and were recorded as overseas investments.
Founders taken into custody for further questioning
Following these findings, the ED arrested Rathore and Nanda to seek more clarity on the funds, operational structure and compliance practices of the platform. The agency plans to question the founders further about game formats, revenue flows and the movement of player money after the nationwide ban.
The one day custody granted by the court allows the ED to continue examining documents and digital records collected during search operations. More custodial time may be requested after the next court appearance.
WinZO denies wrongdoing and promises cooperation
WinZO has rejected all allegations. According to Business Standard company spokesperson said the platform is committed to fairness, transparency and user protection. The company stated that it follows all applicable laws and will cooperate fully with authorities throughout the investigation.
WinZO also said that it will continue providing information requested by the ED as the probe progresses. The platform highlighted that it aims to protect player interests and will address all concerns raised by investigators.
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.
