Policy · Consumer Internet & Media

Karnataka HC warns ED over WinZO cofounder bail appeal

By Startup Enthusiast · 11 April 2026

What they do

WinZO runs a real-money gaming platform where users play skill games for cash prizes

Karnataka High Court warned the ED that a ₹1 lakh cost may be imposed if its appeal against cofounder Paavan Nanda's bail is frivolous

The ED froze ₹700-₹880 crore of WinZO funds, and the company has scaled down operations

The Karnataka High Court warned the Enforcement Directorate (ED) that a ₹1 lakh cost may be imposed if its appeal against WinZO cofounder Paavan Nanda's bail is found frivolous.
Justice S Rachaiah said the ED's appeal must show violation of bail conditions or active suppression of facts by Nanda to avoid the cost.
The next hearing is posted for April 23.
A Bengaluru sessions court granted bail to Nanda in February in a money laundering case filed by the ED.
The case stems from FIRs in Karnataka, Rajasthan, Delhi alleging cheating, impersonation, misuse of KYC details, and wrongful blocking of user accounts.
The ED alleged WinZO used algorithmic manipulation and bots, leading to alleged wrongful gains of about ₹177 crore.
The ED claimed WinZO diverted funds to overseas subsidiaries and routed proceeds of crime through cloud infrastructure on AWS.
The ED alleged large-scale identity misuse and cross-border fund flows of around $55 million.

The ED conducted searches at multiple WinZO-linked locations in late-2025 and froze assets worth hundreds of crores under the Prevention of Money Laundering Act (PMLA).
Around ₹700-₹880 crore of WinZO's funds remain under freeze, pressuring cash flows.
The ED alleged WinZO continued real-money gaming in US, Brazil, Germany after India's regulatory clampdown in August 2025, with operations allegedly controlled from India.
Investigators said funds were routed to US and Singapore under guise of foreign investments, with portion parked in accounts linked to an overseas entity.
WinZO scaled down business, majority of workforce exited in recent months, and slowed new initiatives like a short-video platform.

WinZO runs a real-money gaming platform where users play skill-based games for cash prizes.
The company operates in India, US, Brazil, and Germany.
WinZO makes money by taking a cut from entry fees paid by users in cash games.
The platform hosts games like rummy, fantasy sports, and casual games.
WinZO had launched a short-video platform but slowed that initiative recently.
The company has faced regulatory clampdowns in India since August 2025.

WinZO is awaiting relief from the high court in a separate plea challenging the freezing of its funds.
The next hearing in the bail appeal is on April 23.