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ED chargesheets gaming app WinZO, alleges players duped of ₹734 cr using bots
ED chargesheets online gaming app WinZO, alleges players duped of ₹734 cr using bots
The Enforcement Directorate on Sunday said it has chargesheeted real-money online gaming app WinZO and its promoters, alleging that players lost ₹734 crore on the platform as the company "embedded" bots and AI to "manipulate" the game's algorithms.
According to an official statement, the ED's Bengaluru zonal office filed the prosecution complaint on January 23 before a local court designated to try cases under the Prevention of Money Laundering Act (PMLA).
The company, Winzo Pvt. Ltd., its directors – Paavan Nanda and Saumya Singh Rathore – and its wholly-owned subsidiaries, including those based abroad, like Winzo US Inc., USA, Winzo SG Pte. Ltd and ZO Pvt. Ltd. have been named as accused in the chargesheet.
WinZO, through its mobile application, offered more than 100 games with a claimed user base of about 25 crore users, largely from tier-3 and tier-4 cities, the ED said.
The Union government banned real-money gaming apps in India in August 2025.
"For providing these RMG (real money gaming) services, the company charged a percentage of the betting amounts from the users, as commission. The company also assured its users that its gaming platform was free from any BOTs (bots which are computer-controlled characters), was transparent and secure," the central agency added.
However, it claimed, the probe found that most RMGs were manipulated.
Analysis of the game codebases, third-party developer agreements and internal communications shows that till December 2023, the RMGs were "embedded" with BOTs, AI and algorithm profiles.
From May 2024 to August 2025, Winzo changed its code-based BOT modus operandi to simulate historical match-play data of dormant, inactive players against real users without their knowledge or consent, the ED claimed.
"To suppress and conceal these unscrupulous acts, the company deliberately referred to the use of BOTs and simulated players under misleading terminologies such as EP (engagement play), PPP (past performance of player) and Persona," it said.
The agency further said it found that users were initially "lured" with small bonuses and made to win against easy BOTs, while also being allowed to withdraw small winnings in order to create a "false" sense of trust.
Once the users began playing with higher boot amounts, hard BOTs were deployed systematically, resulting in "significant" financial losses to the users. The genuine users lost to BOT profiles and "incurred loss" of about ₹734 crore, it said.
"Genuine winnings at higher stakes were often blocked through restrictive withdrawal mechanisms, forcing them (users) into continued gameplay," the ED alleged.
The central agency charged that WinZO "failed" to return legitimate user winnings and deposits worth ₹47.66 crore, even after RMGs were banned by the central government last year.
In this manner, the company generated proceeds of crime to the tune of ₹3,522.05 crore between 2021-2022 and 2025-2026 financial years (as on Aug 22, 2025), it said.
"Evidence found from the seized electronic devices also revealed that this manipulative gaming structure of Winzo caused severe financial distress to users (especially those from a poor financial background), and some users reportedly experienced extreme mental distress and also suicidal tendencies," the agency claimed.
It also alleged that proceeds of crime generated by the company were laundered through shell companies created in the US and Singapore.
The ED had conducted raids at the premises of WinZO and its promoters last year and had arrested Nanda and Rathore. Rathore is now out on bail.
Source: LiveMint
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