ED Attaches ₹1,906 Cr in Gameskraft Money Laundering Probe
By Business Desk
India’s ED provisionally attaches Rs 1,906 crore in assets from Gameskraft and RummyTime as part of a money laundering investigation linked to online rummy platforms.
The Directorate of Enforcement (ED) has provisionally attached assets valued at Rs 1,906 crore in an ongoing money laundering investigation targeting Gameskraft Technologies Pvt. Ltd., RummyTime Technologies, and associated entities. This action, taken under the Prevention of Money Laundering Act (PMLA), 2002, stems from multiple First Information Reports (FIRs) filed in Telangana.
Investigation Highlights Key Figures
- Current asset attachment: Rs 1,906 crore.
- Total assets frozen and seized in the case: Rs 2,401 crore.
- Estimated user base across India: three crore.
- Platform commission rates: 10-15% on user stakes.
- Amount spent on promotional activities: Rs 1,035 crore.
The probe alleges that Gameskraft and RummyTime operated various online real-money rummy platforms, including RummyCulture, RummyPrime, Playship, and RummyTime. These operations reportedly served users nationwide, even in states where such gaming activities are prohibited.
Allegations of Illicit Gains and Laundering
Investigators claim the companies generated revenue through platform commissions and allegedly deployed automated bots. These bots are accused of causing financial losses to players while simultaneously generating illicit gains for the operators, as per the allegations.
The ED further highlights that around Rs 1,035 crore was directed towards promotional efforts. Players were reportedly discouraged from withdrawing their funds through various charges and intricate conversion schemes, according to the probe.
Proceeds from these alleged crimes were purportedly laundered via dividend payouts and share buybacks. These funds were then invested into financial instruments and high-value assets, designed to obscure their origins.
Broader Implications for Online Gaming
This latest attachment pushes the total value of assets frozen and seized to approximately Rs 2,401 crore, marking it as one of the most substantial financial investigations within India’s online gaming sector. The allegations, however, are yet to be proven in court as the investigation continues.