ED chargesheets online gaming app WinZO, alleges players duped of ₹734 cr using bots

The Enforcement Directorate on Sunday said it had filed a criminal complaint against real-money online gaming app WinZO and its supporters, alleging players lost. ₹734 crore was generated on the platform by the company “embedding” bots and AI to “manipulate” the game’s algorithms.

According to an official statement, the ED’s Bengaluru regional office filed a prosecution complaint on January 23 with 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 Winzo US Inc., USA, Winzo SG Pte. Ltd and ZO Pvt. Ltd. was named as a defendant in the indictment.

ED said WinZO offers over 100 games through its mobile app with a claimed user base of around 25 crore users, mostly from tier 3 and 4 cities.

The Union government banned real money gaming apps in India in August 2025.

“To provide these RMG (real money gaming) services, the company charged users a percentage of the betting amounts as commission. The company also assured its users that the gaming platform is transparent and safe, free from all kinds of BOTs (bots, which are computer-controlled characters),” the central agency said. he added.

However, most claimed that the investigation found that RMG was manipulated.

Analysis of game codebases, third-party developer agreements, and internal communications shows that by December 2023, RMGs were “embedded” with BOTs, AI, and algorithm profiles.

ED alleged that from May 2024 to August 2025, Winzo modified its code-based BOT modus operandi to simulate historical match data of inactive, inactive players against real users without their knowledge or consent.

“The company has deliberately resorted to the use of BOTs and simulated players under misleading terminologies such as EP (participation gaming), PPP (player past performance) and Persona to suppress and conceal these unscrupulous actions,” he said.

The agency also said it found that users were initially “tempted” by small bonuses to win against easy BOTs, while also being allowed to withdraw small winnings to create a “false” sense of confidence.

After users began playing with higher bootstrap amounts, fixed BOTs were systematically deployed, causing users “significant” financial losses. Real users lost against BOT profiles and approximately ₹734 crore, he said.

“Actual winnings at higher stakes were often blocked through restrictive withdrawal mechanisms, forcing them (users) to continue playing,” ED said.

The central agency claimed that WinZO “failed” to refund legitimate user winnings and deposits. ₹47.66 crore even after RMGs were banned by the central government last year.

This is how the company obtained crime proceeds ₹3,522.05 crore between financial years 2021-2022 and 2025-2026 (as on August 22, 2025), it was stated.

“Evidence obtained from seized electronic devices also revealed that this manipulative gaming structure of Winzo caused serious financial distress to users (especially those with poor financial circumstances), and that some users experienced extreme mental distress as well as suicidal tendencies,” the agency said.

It was also claimed that the proceeds of crime obtained by the company were laundered through shell companies established in the USA and Singapore.

The ED had conducted raids on the premises of WinZO and its supporters last year and arrested Nanda and Rathore. Rathor has now been released on bail.