Daijiworld Media Network – New Delhi
New Delhi, Jan 25: The Enforcement Directorate (ED) on Sunday said it has filed a chargesheet against real-money online gaming platform WinZO and its promoters, alleging that users suffered losses of Rs 734 crore after the company allegedly embedded bots and artificial intelligence (AI) to manipulate game algorithms.
According to an official statement, the ED’s Bengaluru zonal office filed the prosecution complaint on January 23 before a special court designated to try cases under the Prevention of Money Laundering Act (PMLA).
The chargesheet names Winzo Pvt Ltd, its directors Paavan Nanda and Saumya Singh Rathore, along with its wholly-owned domestic and overseas subsidiaries, including Winzo US Inc. (USA), Winzo SG Pte Ltd (Singapore) and ZO Pvt Ltd, as accused.
The ED said WinZO operated a mobile application offering over 100 real-money games, claiming a user base of nearly 25 crore players, primarily from tier-3 and tier-4 cities. The Union government had banned real-money gaming applications in August 2025.
“For providing these real-money gaming services, the company charged a percentage of the betting amounts as commission, while assuring users that the platform was free from bots and was transparent and secure,” the agency said. However, the investigation found that most games were manipulated, it added.
The ED claimed that analysis of game codebases, third-party developer agreements and internal communications revealed that until December 2023, the games were embedded with bots, AI and algorithm profiles.
Between May 2024 and August 2025, WinZO allegedly altered its modus operandi by simulating gameplay using historical data of dormant and inactive players, pitting them against real users without their knowledge or consent.
“To conceal these practices, the company referred to bots and simulated players using misleading terminologies such as EP, PPP and Persona,” the ED alleged.
The agency further claimed that users were initially lured with small bonuses and easy wins, and allowed to withdraw minor amounts to build trust. However, once users began playing with higher stakes, more difficult bots were deployed, leading to substantial financial losses.
According to the ED, genuine users lost around Rs 734 crore to bot-controlled profiles, while withdrawals at higher stakes were often blocked through restrictive mechanisms, forcing continued gameplay.
The agency also alleged that WinZO failed to return Rs 47.66 crore in legitimate user winnings and deposits even after real-money gaming was banned.
In total, the ED claimed that the company generated proceeds of crime amounting to Rs 3,522.05 crore between the 2021–22 and 2025–26 financial years.
“Evidence from seized electronic devices indicates that the manipulative gaming structure caused severe financial distress among users, with some reportedly experiencing extreme mental stress and suicidal tendencies,” the agency said.
The ED further alleged that the proceeds of crime were laundered through shell companies in the US and Singapore.
The central agency had conducted searches at WinZO premises last year and arrested Paavan Nanda and Saumya Singh Rathore. Rathore has since been released on bail.