Federal investigators moved against one of India's most prominent real-money gaming companies this week, expanding a money laundering probe that now spans multiple states and touches on how online betting platforms handle user funds. The Enforcement Directorate's Bengaluru Zonal Office conducted searches across Delhi-NCR, Bengaluru and other locations on Thursday, May 7, targeting Gameskraft Technologies Pvt Ltd, its directors and several individuals linked to alleged online betting operations. Officials collected documents, digital records and electronic evidence, building on an investigation that has already produced significant seizures and frozen accounts.
This is not the first time Gameskraft has drawn the agency's attention. Searches conducted last year covered a separate matter, while the current action stems from a distinct case built on FIRs originally filed with Bengaluru police before being escalated to the ED under the Prevention of Money Laundering Act. Complaints centre on Pocket52, a platform operated by M/s Nirdesa Networks Pvt Ltd, where users alleged manipulated game outcomes, player collusion and restricted withdrawals. One complainant reportedly lost more than ₹3 crore, a figure that illustrates why regulators treat withdrawal disputes as more than customer service failures - for many affected users, questions as basic as how to withdraw my money became central to allegations of systemic fraud rather than routine account queries. how to withdraw my money
What the Investigation Has Uncovered So Far
Between November 18 and 22, 2025, ED teams searched premises in Bengaluru and Gurugram connected to Nirdesa Networks, Gameskraft and their directors, seizing mobile phones, laptops and backup data. Investigators allege the platform exploited users through opaque algorithms and unfair practices without compensating losses. Under the Online Gaming Promotion and Regulation Act, 2025, operators face specific obligations around escrow handling, yet the ED found more than ₹30 crore still sitting in escrow accounts rather than returned to customers. Eight escrow accounts holding roughly ₹18.57 crore have since been frozen on suspicion the funds represent proceeds of crime.
Why Escrow and Withdrawal Failures Matter
Escrow accounts exist precisely to protect player funds from commingling with operational revenue, giving users a legal claim to money that platforms cannot freely spend. When those accounts remain unfunded or withdrawals are indefinitely delayed, it signals either liquidity trouble or deliberate fund diversion - both serious red flags for regulators enforcing the newer PROG Act framework. For an industry still adjusting to formal licensing and oversight, cases like this test whether escrow mechanisms function as intended or merely as compliance theatre.
Implications for the Wider Gaming Sector
India's real-money gaming industry has expanded rapidly, drawing both mainstream investment and sustained regulatory scrutiny. This case reinforces a pattern: enforcement agencies are increasingly willing to pursue PMLA action against gaming operators once local police complaints suggest financial irregularities. For consumers, it underscores the importance of choosing platforms with transparent terms and verifiable withdrawal processes before committing funds, since disputes over payouts can take years to resolve through investigation. For operators, the message is equally direct - regulatory frameworks introduced to legitimise the sector will be enforced with real consequences when escrow obligations and consumer protections are not met.