In this case, the Directorate of Enforcement (ED) has intensified its crackdown on online gaming companies by provisionally attaching assets to Gameskraft Technologies Pvt. Ltd., its shareholders and related entities. Based on the Prevention of Money Laundering Act (PMLA), 2002, we have concluded that cheating and laundering of proceeds of crime through real-money gaming platforms was done.
Background of the Case
The investigation had been initiated after several FIRs in Telangana under the Bharatiya Nyaya Sanhita were declared as scheduled offences under PMLA. Gameskraft and its related company RummyTime Technologies were popular real‑money gaming apps like RummyCulture, RummyPrime, Playship and RummyTime with almost 3 crore users in India, primarily in Telangana, Andhra Pradesh and Tamil Nadu.
Allegations by ED
The ED alleges that the companies:
Earned 10–15% commissions on the amounts staked by users.
Used automated bots to play against unsuspecting users, causing financial losses while generating unlawful profits.
Created an addictive gaming environment by offering bonuses, referral incentives, and promotional rewards to encourage repeated wagering.
Spent nearly ₹1,035 crore on marketing and promotional campaigns to attract and retain users.
- Assets Attached The attached properties include:
- Bank balances, fixed deposits, mutual funds, and convertible notes
- Equity shares
- Residential and commercial properties
- Farmhouses and high‑value immovable assets held by shareholders, family members, and private trusts.
Laundering Mechanisms
The ED reported that the proceeds of crime were layered by dividend payments, share buy‑backs and investment in financial instruments to make them appear legitimate. During the investigation, the agency had frozen ₹495 crore and seized cash, gold and diamond jewellery.
With this latest attachment, the total value of assets seized in the Gameskraft case has reached ₹2,401 crore. This investigation underscores the government’s growing scrutiny of online gaming platforms, especially after the Union government banned online money gaming in August 2025.
The ED’s action against Gameskraft is among India’s largest asset attachments. As investigations continue, there is an urgent need to better regulate real‑money gaming platforms to protect consumers and ensure transparency in digital entertainment.
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