WinZO Founders Arrested in ED Probe, Gaming Industry on Alert

Delhi-based gaming startup WinZO, once celebrated as a major force in India’s gaming boom, is now facing a serious enforcement crackdown. 

The Enforcement Directorate  has arrested its founders and has frozen over ₹500 crore, raising critical questions about governance and user protection in the real-money gaming sector.
 
The trouble began in August 2025, when the government banned real-money gaming apps like Dream11 and WinZO and ordered full refunds to users. 
 
WinZO allegedly failed to return ₹43 crore, leading to widespread complaints and an FIR.
Investigators later uncovered claims of gameplay manipulation. 
 
WinZO reportedly used bots in its Ludo game, supported by a hidden algorithm designed to increase user losses—an allegation that….. if true, amounts to fraud.
 
The ED probe also found offshore financial irregularities. 

A U.S.-based subsidiary, WinZO US, allegedly processed Indian user data and received nearly ₹490 crore, prompting money laundering concerns. 
 
Despite the ban, the Indian team was reportedly running operations for foreign markets such as Brazil and the U.S.
These revelations have shaken confidence in a sector once projected for explosive growth. 
 
The case underscores risks around data misuse, unethical gameplay, and weak oversight.
 
If proven, the allegations could reshape India’s gaming regulations and set new standards for accountability in the digital economy.