Gameskraft Technologies Allegations – Financial Misconduct
The Enforcement Directorate (ED) has claimed that the Bengaluru-based real money gaming platform, Gameskraft Technologies, employed bots and manipulated its gaming frameworks, resulting in financial losses surpassing Rs 1,154 crore for users. This information was disclosed in a press release on Wednesday. The agency reported that it conducted search and seizure operations from May 7 to May 13 at the company’s premises and residences associated with its directors and key personnel in Bengaluru and the NCR region. During these searches, the ED stated that it froze and confiscated movable assets valued at approximately Rs 526.49 crore, which included bank balances, mutual funds, bonds, and fixed deposits. Additionally, jewellery worth Rs 3.5 crore and cash amounting to Rs 11 lakh were seized.
The situation developed shortly after the ED arrested co-founders of Gameskraft, Deepak Singh, Prithvi Raj Singh, and Vikas Taneja, under the Prevention of Money Laundering Act (PMLA). The investigation has its roots in numerous FIRs lodged across various states, which accuse the company of cheating and illicit financial gains through its online gaming platforms.
According to the ED, Gameskraft operated real money gaming applications under several brands, including RummyCulture, RummyPrime, Playship, RummyTime, and RummyCorner. The agency accused the company of continuing to provide services in states where online real money gaming is either restricted or prohibited by altering users’ geo-locations.
The agency further asserted that users were initially permitted to win and withdraw small sums to foster trust, only to be later compelled to play against automated BOT accounts. The ED noted that genuine users were ultimately overwhelmed by BOT user IDs, stating that the platform strategically deployed bots when users began playing for higher stakes.
Moreover, the ED alleged that the revenue generated from these practices was redirected towards foreign entities, dividend payments, mutual funds, bonds, and both movable and immovable properties. Investigations are ongoing.