(MENAFN- Live Mint) The Enforcement Directorate is raiding two online gaming firms – Winzo and Gamezkraft (pocket52) – that operate from Bengaluru and Delhi, respectively, after complaints of“manipulated algorithms” to put gamers at a disadvantage, ANI reported. As many as 11 locations – five in Bengaluru, four in Delhi, and two in Gurgaon – of both Winzo and Gamezkraft are being raided by the law enforcement agency. The raids are being conducted by ED's Bengaluru Zonal Office.

According to the reports, the ED raids are being conducted at the corporate offices and residences of CEO/COO/CFO of WinZO and Gamezcraft Search in connection with the allegations of rigged algorithms.

Searches also revealed that the promoters hold crypto wallets, suggesting possible laundering through cryptocurrencies.

“It is alleged in the FIRs filed by the victims that these gaming companies had manipulated the algorithm of the app, putting the gamers at a disadvantage. During the search, it is unearthed that Promoters are owning crypto wallets, indicating laundering through cryptocurrencies,” ANI quoted ED officials as saying.

Meanwhile, several online gaming platforms, such as Dream11, My11Circle, WinZO, Zupee, and PokerBaazi (supported by Nazara Technologies) suspended their real-money gaming services following the implementation of The Promotion and Regulation of Online Gaming Act from October 1.

“We have engaged with the industry, we have had multiple discussions with them, we have been having discussions with them for last almost three years. After passing the law, once again, we engaged with them, we also engaged with the banks and practically all stakeholders possible, and we have finalised the rules,” PTI quoted IT Minister Ashwini Vaishnaw as saying.

Online gaming firm Gameskraft announced in August that it will not contest the newly introduced Promotion and Regulation of Online Gaming Act, 2025. Instead, the company plans to focus on shaping a future strategy aligned with the updated law, the report noted. In its statement, Gameskraft added that it has already discontinued all real-money“Gameplay” and“Add Cash” features on its Rummy platforms effective August 21.

A company spokesperson stated, "As a responsible and law-abiding corporate entity, Gameskraft has no intention of pursuing any legal challenge to the legislation. We fully respect the legislative process and remain committed to operating within the framework of the law... Gameskraft remains committed to constructive dialogue with policymakers and stakeholders, responsible innovation, player protection, and regulatory alignment.”

Gameskraft stated that it has settled all regulatory obligations and implemented measures to protect its employees, partners, vendors, and service providers.

The company further said that it will now turn its attention to identifying fresh prospects that fit within the changing legal framework.

"Our cross-functional teams are actively exploring new opportunities and future-ready solutions... to unlock the full potential of India's digital gaming economy," the spokesperson added.

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