ED chargesheets WinZO over alleged bot, AI manipulation: Users lost ₹734 crore

The Enforcement Directorate has filed a chargesheet against online gaming platform WinZO and its promoters, alleging large-scale manipulation using bots and artificial intelligence that led to losses of ₹734 crore for users across India.

The Enforcement Directorate (ED) has intensified scrutiny of India’s real-money online gaming sector by filing a chargesheet against gaming platform WinZO, its promoters, and related entities, alleging that users lost nearly ₹734 crore due to game manipulation driven by bots and artificial intelligence tools.

In a statement issued on Sunday, the ED said its Bengaluru zonal office filed the prosecution complaint on January 23, 2026, before a special court designated to hear cases under the Prevention of Money Laundering Act (PMLA). The move marks a significant escalation in regulatory action against digital gaming platforms accused of financial misconduct.

Allegations of AI-Driven Game Manipulation

According to the ED, WinZO allegedly embedded bots and artificial intelligence mechanisms within its gaming ecosystem to manipulate game algorithms. These alleged manipulations, the agency claims, created unfair playing conditions that resulted in heavy financial losses for users participating in real-money games on the platform.

The ED said its investigation revealed that the manipulation was systematic and designed to benefit the platform while misleading users about their chances of winning. The agency added that such practices violated financial and anti-money laundering regulations.

Who Has Been Named in the Chargesheet

Those named as accused in the chargesheet include:

WinZO Pvt. Ltd.

Paavan Nanda, Director

Saumya Singh Rathore, Director

The ED has also named several wholly owned subsidiaries of the company, including overseas entities:

WinZO US Inc. (United States)

WinZO SG Pte. Ltd. (Singapore)

ZO Pvt. Ltd.

According to the agency, these entities were allegedly part of the broader operational structure through which the platform conducted its gaming and financial activities.

Scale of Operations Under Scrutiny

WinZO operates primarily through a mobile application and claims to offer more than 100 real-money games to users. The platform has publicly stated that it has a user base of nearly 25 crore players, with a significant concentration in tier-3 and tier-4 cities across India.

Investigators noted that the platform’s widespread reach, particularly among users from smaller towns and semi-urban regions, amplified the financial impact of the alleged manipulation.

Findings of the ED Investigation

The ED said its probe uncovered “serious irregularities” in the functioning of the gaming platform. These irregularities, according to the agency, were not isolated incidents but part of a broader pattern that resulted in substantial financial losses for players over time.

The agency further stated that proceeds generated through the alleged manipulation are being examined under money laundering provisions, and financial trails involving domestic and international entities are under scrutiny.

Next Legal Steps

With the filing of the chargesheet, the matter will now proceed before the special PMLA court, which will examine the prosecution complaint and decide on the next course of action. The accused parties are expected to respond to the allegations as the judicial process unfolds.

The ED has indicated that further proceedings, including potential attachment of assets and additional investigations, may follow based on court directions and ongoing findings.

Broader Implications for the Online Gaming Sector

The case is being closely watched as it could have far-reaching implications for India’s rapidly growing real-money gaming industry. Regulators and policymakers have increasingly raised concerns about transparency, fairness, and consumer protection in platforms that use advanced technologies such as AI and automated systems.

Experts believe the outcome of the WinZO case could shape future enforcement actions and regulatory frameworks governing online gaming, particularly around the use of algorithms, bots, and artificial intelligence.

The ED’s chargesheet against WinZO underscores rising regulatory scrutiny over digital gaming platforms and their use of advanced technologies. As the case moves to court, it is likely to set important precedents on accountability, consumer protection, and the lawful use of AI in real-money gaming.