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ED arrests Gameskraft cofounders in money laundering case

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ED arrested Gameskraft cofounders Deepak Singh, Prithvi Raj Singh, and Vikas Taneja under PMLA in May 2026

ED froze assets worth Rs 526.49 crore and seized jewellery and cash during searches across Bengaluru and Delhi NCR

ED froze assets worth Rs 526.49 crore, seized jewellery worth Rs 3.5 crore and cash Rs 11 lakh

The Enforcement Directorate (ED) arrested Gameskraft cofounders Deepak Singh, Prithvi Raj Singh, and Vikas Taneja in May 2026 under the Prevention of Money Laundering Act (PMLA).
The ED conducted searches across Bengaluru and Delhi NCR from May 7 to 13, seizing documents and assets.
The ED froze assets worth Rs 526.49 crore and seized jewellery worth Rs 3.5 crore and cash of Rs 11 lakh.
The ED alleged that Gameskraft used bots (automated programs) and geo-location tampering to operate in states where real-money gaming was banned.
The ED alleged that users suffered losses of Rs 1,154 crore due to bot-based manipulation, with users lured by small winnings then forced into higher-stake games against bots.
The ED alleged that proceeds were laundered through foreign entities, dividends, mutual funds, bonds, and properties.
The Karnataka High Court issued notices to the ED on writ petitions challenging the arrests, with the next hearing on May 14.
Earlier, the ED had frozen eight escrow accounts holding around Rs 18.57 crore and searched 11 locations in November 2025 linked to Gameskraft and WinZO.

The Promotion and Regulation of Online Gaming Act, 2025 came into force on May 1, 2026, banning real-money games (RMG) across India.
The ED alleged that Gameskraft continued services in banned states by tampering geo-locations, violating the new law.
The ED alleged that at least six FIRs linked to Gameskraft are still under investigation, and the probe is also linked to online poker platform Pocket52.
The online gaming sector faces increasing regulatory scrutiny from enforcement and tax authorities, as seen in the arrests of WinZO cofounders in November 2025.

Gameskraft operates several online real-money gaming platforms, including RummyCulture, RummyPrime, Playship, RummyTime, and RummyCorner.
The company had nearly 3 crore users across India.
The ED alleged that Gameskraft charged a 10-15% commission on user stakes.
The company laid off more than 400 employees amid regulatory pressure.
The ED alleged that users reported suicidal tendencies and severe financial distress due to losses on the platforms.

The Karnataka High Court will hear the writ petitions challenging the arrests on May 14.
The ED's investigation into the alleged money laundering continues, including probes linked to Pocket52 and six FIRs.