ED Attaches Rs 1,906 Crore Assets of Gameskraft Technologies in Bengaluru

The Enforcement Directorate’s Bengaluru zonal office on Sunday provisionally attached movable and immovable properties valued at approximately Rs 1,906 crore belonging to online gaming firm Gameskraft Technologies, its shareholders, and associated entities in connection with an alleged money laundering investigation.

The enforcement action follows multiple FIRs registered in Telangana regarding Gameskraft’s RummyCulture application and other online real-money gaming platforms. In May and June this year, officials conducted searches across the company’s office premises and the residences of its directors.

According to the agency, Gameskraft Technologies and RummyTime Technologies operated online real-money games, including rummy and tournaments, through mobile applications such as RummyCulture, RummyPrime, Playship, and RummyTime. The platforms collectively amassed a user base of nearly 3 crore players across India.

Investigators stated that a significant number of users were located in states where online real-money gaming is banned, including Telangana, Andhra Pradesh, and Tamil Nadu. The companies allegedly generated substantial revenue by charging platform commissions ranging between 10 and 15 per cent on wagering deposits made by players.

The agency alleged that while the platforms assured players of a transparent environment free of automated scripts, they deployed automated programmes (BOTs) against users. The use of BOTs resulted in substantial financial losses for users while generating proceeds of crime for the companies.

The probe also highlighted aggressive user-acquisition and retention tactics. Approximately Rs 1,035 crore was spent on marketing and promotional campaigns, luring users through bonuses and free tournament entries. To prevent cash outflow, the companies allegedly imposed restrictive withdrawal levies between 5 and 10 per cent and targeted dormant users with instant cash credits to induce them back onto the apps.

The ED stated that the proceeds of crime were layered and integrated through dividend payouts and share buybacks before being concealed in mutual funds, bonds, equity shares, and high-value real estate, including assets held through family trusts.

Prior to this provisional attachment order, the agency had frozen movable assets worth Rs 495 crore alongside Rs 11 lakh in cash and 2.30 kg of gold and diamond jewellery. With the latest order, the total value of assets attached, frozen, or seized in the case stands at approximately Rs 2,401 crore. Additionally, former Group CFO Ramesh Prabhu was previously booked for allegedly siphoning off over Rs 250 crore from the company.