Online rummy app owners scammed users, diverted funds to buy villas: ED

The agency said the newly attached assets include fixed deposit balances, commercial shops, a luxury villa, multiple residential properties registered in family members’ names, private family trusts, and entities associated with Gameskraft Technologies shareholders.

Prior search operations froze movable assets worth Rs 495 crore, along with Rs 11 lakh in cash and 2.30 kg of gold and diamond jewellery/bullion. A previous provisional attachment order had already secured properties valued at Rs 1,906 crore. With the latest action, the total value of assets attached, frozen, and seized by the agency in this case stands at Rs 2,843 crore.

The agency claims that Gameskraft Technologies and Rummy Time Technologies operated online real-money games, specifically online rummy platforms and tournaments, via mobile applications, including RummyCulture, RummyPrime, Playship, and RummyTime.

The platforms accumulated a user base of approximately 3 crore players across the country. A significant portion of these users were located in states where online real-money gaming is legally banned, including Telangana, Andhra Pradesh, and Tamil Nadu. The companies generated substantial revenues by charging platform commissions ranging from 10 per cent to 15 per cent on user wagering and staking deposits.

Despite assuring players that the gaming environment was fair, transparent, and free of automated players, the companies allegedly deployed BOTs (automated algorithms) against unsuspecting users without their knowledge or consent. This setup caused heavy financial losses for players while generating vast criminal proceeds for the platforms.

Addictive tactics, fund diversion

To recruit and retain players, the entities allegedly spent approximately Rs 1,035 crore on marketing, luring users with sign-up bonuses, referral rewards, free entries, and promotional incentives.

To restrict user payouts, the platforms allegedly implemented restrictive withdrawal policies such as a 5-10 per cent levy on withdrawal requests. They also allegedly encouraged users to convert withdrawable funds into non-withdrawable ‘Game Cash’ through ‘Super Booster’ offers.

The agency claims that they targeted inactive or dormant players through SMS, push notifications, and telemarketing calls to induce re-engagement. It says the proceeds of crime generated through these practices were laundered via dividend payments and share buybacks. They allegedly concealed the funds by investing in mutual funds, bonds, convertible notes, equity shares, movable assets, and high-value real estate properties through family trusts and shell entities.