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ED attaches Rs 1,906-crore assets of online rummy firm over rigged games, money laundering
The agency has attached assets belonging to RummyCulture's parent firm, Gameskraft, over allegations of user manipulation via BOTs, illegal operations in banned states, and money laundering.
Investigators claim Gameskraft-generated proceeds were layered through dividends, buybacks and investments after allegedly manipulating users on real-money gaming platforms (Image generated using AI).
The Enforcement Directorate (ED)’s Bengaluru zonal office has provisionally attached movable and immovable properties valued at approximately Rs 1,906 crore belonging to Gameskraft Technologies, its shareholders, and associated entities, the agency said Sunday.
This action is part of the probe into alleged money laundering involving Gameskraft’s RummyCulture application and other online gaming platforms after multiple FIRs were registered in Telangana. In May and June this year, officials conducted searches across the company’s office premises and the houses of its directors.
According to the agency, Gameskraft Technologies and RummyTime Technologies operated online real money games, particularly online rummy games and tournaments, via mobile applications under brands such as RummyCulture, RummyPrime, Playship, and RummyTime.
The platforms allegedly collectively amassed a user base of nearly 3 crore players across India.
“Investigation revealed 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 agency stated. “These companies derived substantial revenue by charging platform commissions ranging from 10 to 15 per cent on wagering amounts deposited by users.”
Allegations of BOT deployment and manipulation
The agency alleged that while the companies assured players of a transparent, fair environment free of automated scripts, they deployed automated programmes (BOTs) against users.
“The use of BOTs resulted in substantial financial losses to users while generating proceeds of crime for the companies,” the agency noted.
The investigation also highlighted aggressive user-acquisition and retention practices. Approximately Rs 1,035 crore was spent on marketing and promotional campaigns, luring new users through bonuses, referral incentives, and free tournament entries.
To prevent cash outflow, the companies allegedly imposed restrictive withdrawal mechanisms, including withdrawal levies ranging between 5 and 10 per cent, and incentivised players to convert withdrawable balances into non-withdrawable ‘Game Cash’ through ‘Super Booster’ offers. Dormant users who had stopped playing after heavy losses were allegedly targeted via push notifications, telemarketing, and instant cash credits to induce them back onto the platform.
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Layering and total seizures
The agency stated that the proceeds of crime generated through these practices were layered and integrated via dividend payouts and share buybacks to shareholders. The funds were subsequently concealed in mutual funds, bonds, convertible notes, equity shares, and high-value real estate, including assets held through family trusts, it said.
Before the provisional attachment order, the agency had frozen movable assets worth Rs 495 crore under the Prevention of Money Laundering Act (PMLA), alongside Rs 11 lakh in cash and 2.30 kg of gold and diamond jewellery.
With the latest provisional attachment order, the total value of assets attached, frozen, or seized in the case stands at approximately Rs 2,401 crore.
Ramesh Prabhu, former Group CFO of Gameskraft Technologies, was previously booked for allegedly siphoning off over Rs 250 crore from the company, most of which he reportedly lost in options trading.
© The Indian Express Pvt Ltd
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