The Enforcement Directorate has chargesheeted real-money online gaming platform WinZO, its promoters and associated entities, alleging that players were duped of Rs 734 crore through games manipulated using bots, artificial intelligence and deceptive algorithms, according to an agency statement.
The prosecution complaint was filed on January 23 by the ED’s Bengaluru zonal office before a special court under the Prevention of Money Laundering Act (PMLA). Those named as accused include Winzo Pvt. Ltd., its directors Paavan Nanda and Saumya Singh Rathore, and its wholly owned subsidiaries, including Winzo US Inc. (USA), Winzo SG Pte. Ltd. and ZO Pvt. Ltd.
WinZO claimed to offer over 100 games through its mobile application and projected a user base of nearly 25 crore players, largely from tier-3 and tier-4 cities. The Union government banned real-money gaming (RMG) apps across India in August 2025.
“For providing these RMG 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… and was transparent and secure,” the agency stated.
However, the investigation found that most RMGs were manipulated. Analysis of game codebases, third-party developer agreements and internal communications showed that until December 2023, the games were “embedded” with bots, AI and algorithmic profiles.
Also read: Banned in India, WinZO enters US market
From May 2024 to August 2025, the agency alleged, WinZO altered its modus operandi by simulating historical match-play data of dormant and inactive players against real users, without their knowledge or consent.
“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,” the statement read.
The agency alleged that users were initially “lured” with bonuses and easy wins against low-difficulty bots, with small withdrawals allowed to build trust. Once users began wagering higher amounts, more difficult bots were deployed, leading to “significant” financial losses.
“Genuine winnings at higher stakes were often blocked through restrictive withdrawal mechanisms,” forcing continued gameplay, the agency claimed. As a result, genuine users “incurred loss” of about Rs 734 crore.
The ED further alleged that WinZO failed to return legitimate user winnings and deposits worth Rs 47.66 crore even after the ban. Proceeds of crime totalling Rs 3,522.05 crore were generated between the 2021-22 and 2025-26 financial years, as on August 22, 2025.
Evidence from seized electronic devices indicated severe financial distress among users, with some reportedly experiencing mental trauma and suicidal tendencies. The agency also alleged laundering of proceeds through shell companies in the US and Singapore.
The ED had conducted searches last year and arrested Nanda and Rathore. Rathore is currently out on bail.
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