The Enforcement Directorate (ED) has reportedly arrested three cofounders of gaming platform Gameskraft Technologies in connection with an alleged fraud-linked money laundering case under the Prevention of Money Laundering Act (PMLA). 

Citing officials, PTI reported that the agency arrested Deepak Singh, Prithvi Raj Singh and Vikas Taneja.

Deepak Singh and Prithvi Raj Singh were arrested from Delhi NCR, following which the ED obtained transit remand to produce them before a Bengaluru court.

Taneja was arrested in Bengaluru and produced before the jurisdictional court there.

The arrests follow the ED registering a money laundering case against Gameskraft and associated entities based on multiple FIRs alleging cheating and fraud.

As per a CNBC TV18 report, the case pertains to an alleged ₹1,000 Cr betting-linked fraud. As part of the probe, the agency conducted searches at 17 locations across Delhi NCR and Karnataka yesterday. Officials said the searches continued till early morning today and led to the seizure of certain documents.

During the investigation, the ED seized various incriminating documents, which officials said formed the basis of the allegations against the founders.

According to the FIRs cited by the agency, the case involves allegations of cheating and fraud linked to online money gaming platforms such as RummyCulture and RummyTime, allegedly operated by the company and its cofounders. The FIRs also mention complaints involving people who allegedly died by suicide after being duped.

It is pertinent to note that both RummyCulture and RummyTime were effectively shut down following the nationwide ban on real-money gaming (RMG).

This is not the first time the ED has taken action against Gameskraft. In November last year, the agency conducted searches at offices linked to Gameskraft and WinZO across Bengaluru, Delhi and Gurugram following allegations that gaming platforms manipulated algorithms to disadvantage players.

The ED had then searched 11 locations, including corporate offices and residences of senior executives. Investigators also reportedly found crypto wallets allegedly linked to promoters, raising suspicions of possible money laundering through cryptocurrencies.

Earlier this year, the Karnataka High Court stayed the ED’s investigation against Gameskraft after the company challenged the probe. Gameskraft argued that the original FIR forming the basis of the investigation had already been closed due to a lack of incriminating evidence. However, the ED told the court that at least six FIRs linked to the company were still under investigation.

The probe is centred around allegations of cheating and money laundering linked to Gameskraft and online poker platform Pocket52. The ED had earlier frozen eight escrow accounts holding around ₹18.57 Cr as suspected proceeds of crime. One complainant had allegedly claimed losses of more than ₹3 Cr due to suspected manipulation on the platform.

Notably, WinZO cofounders Paavan Nanda and Saumya Singh Rathore were arrested by the ED in November 2025 in a money laundering case registered under the PMLA. A Bengaluru court later sent them to 10 days of ED custody.

In December 2025, a Bengaluru sessions court granted bail to Rathore. However, the court denied bail to Nanda. Earlier in February this year, the sessions court granted bail to Nanda and ordered him to furnish a ₹5 Lakh bond with two sureties of ₹2 Lakh each, surrender his passport, and cooperate with the investigation.

The ED later challenged Nanda’s bail before the Karnataka High Court, where the matter is still being heard.

The latest action comes after the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which imposed a nationwide ban on online real-money gaming while promoting e-sports and online social games.

Gameskraft has been grappling with the fallout of the RMG ban. The startup reportedly laid off more than 400 employees as part of restructuring efforts amid mounting regulatory pressure. 

Last month, MeitY notified the new regulatory framework for the sector, months after the approval of the Online Gaming Act, which officially came into force from May 1. The Act, which was introduced and passed in Parliament in August 2025, imposed a complete ban on online real-money gaming (RMG) platforms and prohibited advertisements related to such services.

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