ED Attaches ₹1,906-Cr Gameskraft Assets

NEW DELHI: The Enforcement Directorate (ED) has provisionally attached assets worth Rs 1,906 crore of online gaming company Gameskraft, alleging that it creates an “addictive” environment that encourages repeat betting.

The seizure, which was carried out on July 22 under the Prevention of Money Laundering Act (PMLA), includes bank deposits, fixed deposits, mutual funds, convertible bonds, equity shares, a farmhouse and residential and commercial properties held by shareholders, family members, trusts and associated entities.

The agency said the action was related to the operations of real-money gaming apps such as RummyCulture, RummyPrime, Playship and RummyTime.

According to ED, Gameskraft and RummyTime Technologies were operating online real money games with a user base of around three crore players, mainly in Telangana, Andhra Pradesh and Tamil Nadu.

The agency alleged that the companies earned 10-15 percent commission on users’ bet amounts and used automated programs to play against users without their knowledge.

He said users are offered bonuses, referral incentives and promotional rewards to encourage continued participation and higher deposits.

“These unscrupulous practices by the companies have created an addictive gaming environment that encourages repeated betting, thereby enabling the companies to generate huge criminal revenues in the form of platform commissions,” the ED said.

The agency claimed that the proceeds were then diverted to be integrated into the financial system through dividends and share buybacks.

Following the latest action, the total value of assets seized, seized or frozen in the case reached 2.401 billion rupees.