The action pertains to operations of real money gaming apps such as RummyCulture, RummyPrime, Playship and RummyTime, the agency said.
NEW DELHI: The Enforcement Directorate (ED) has provisionally attached assets worth ₹1,906 crore of online gaming company Gameskraft, alleging that it created an “addictive” environment that encouraged repeated wagering.
The attachment, carried out on July 22 under the Prevention of Money Laundering Act (PMLA), includes bank deposits, fixed deposits, mutual funds, convertible notes, equity shares, a farmhouse and residential and commercial properties held by shareholders, their family members, trusts and associated entities.
The action pertains to operations of real money gaming apps such as RummyCulture, RummyPrime, Playship and RummyTime, the agency said.
According to the ED, Gameskraft and RummyTime Technologies operated online real money games with a user base of about three crore players, mainly in Telangana, Andhra Pradesh and Tamil Nadu.
The agency alleged that the companies earned commissions of 10-15 per cent on users’ wagering amounts and deployed automated programmes to play against users without their knowledge.
It said users were offered bonuses, referral incentives and promotional rewards to encourage continued participation and higher deposits.
"These unscrupulous practices of the companies have created an addictive gaming environment that encouraged repeated wagering, thereby enabling the companies to generate huge proceeds of crime in the form of platform commission," the ED said.
The agency alleged that the proceeds were subsequently routed through dividends and share buy-backs to integrate them into the financial system.
Following the latest action, the total value of assets attached, seized or frozen in the case has reached ₹2,401 crore.
