The Enforcement Directorate expanded one of its largest online gaming investigations this week, conducting coordinated searches across Delhi-NCR, Bengaluru and other locations on Thursday, May 7, in a case now estimated to involve alleged proceeds of ₹1,000 crore. The operation, run out of ED's Bengaluru Zonal Office, targeted Gameskraft Technologies Pvt Ltd, its directors and several individuals allegedly linked to online betting activity. It marks a fresh escalation in a probe that has been building since late last year.
Officials collected documents, digital records and electronic evidence during the raids, a routine but critical step in money laundering investigations where financial trails are often buried in transaction logs, app backend data and third-party payment records. For readers unfamiliar with how these platforms operate, guides such as chicken road game step by step explanations offer a sense of how simple-looking online games are structured around odds, staking and payout mechanics - the same mechanics regulators scrutinize when probing manipulation claims. The current searches are distinct from an earlier round conducted against Gameskraft in a separate matter last year, underscoring that the company now faces scrutiny on multiple fronts. chicken road game step by step
This latest action stems from FIRs originally filed with Bengaluru police, later escalated to the ED under the Prevention of Money Laundering Act. That legal pathway allows the agency to pursue asset tracing and account freezes independent of the original criminal complaints, effectively running a parallel financial investigation alongside state-level cases.
How the Pocket52 Allegations Surfaced
Between November 18 and 22 last year, the ED had already searched premises linked to Nirdesa Networks Pvt Ltd and Gameskraft Technologies in connection with Pocket52, an online gaming platform operated by NNPL. Those searches followed FIRs alleging manipulated game outcomes, player collusion, restricted withdrawals and a lack of operational transparency. One complainant reportedly alleged losses exceeding ₹3 crore, while multiple users flagged concerns about algorithmic manipulation affecting game fairness.
Such allegations strike at the core of what separates a regulated gaming product from an exploitative one: verifiable randomness, transparent payout logic and enforceable withdrawal rights. When platforms control both the game engine and the escrow holding player funds, independent audit becomes essential - its absence is often what regulators flag first.
Escrow Accounts and Frozen Funds
A significant part of the case concerns money that never reached users. The ED found that despite restrictions under the Online Gaming Promotion and Regulation Act, 2025, more than ₹30 crore remained sitting in escrow accounts instead of being returned to gamers. The agency has since frozen eight escrow accounts holding roughly ₹18.57 crore, treating the funds as suspected proceeds of crime pending further investigation.
- Escrow accounts are meant to hold player funds neutrally until games conclude or disputes resolve.
- Delays in releasing such funds often indicate liquidity stress, deliberate withholding, or attempts to obscure fund flows.
- Freezing orders under PMLA do not amount to a final finding of guilt but preserve assets during investigation.
What This Means for the Online Gaming Sector
India's online real-money gaming industry has expanded rapidly, drawing regulatory attention precisely because oversight has struggled to keep pace with product complexity and payment volume. Cases like this one test how effectively new frameworks such as the PROG Act can enforce escrow discipline and platform accountability. For users, the episode is a reminder that withdrawal delays, opaque algorithms and unresponsive customer support are warning signs worth taking seriously - not incidental friction. For operators, it signals that regulators are increasingly willing to treat gaming platforms as financial intermediaries subject to the same scrutiny as banks or payment processors, not merely as entertainment apps.