The Enforcement Directorate (ED) on Friday carried out coordinated search operations at more than 30 locations across India, including the office of online fantasy gaming platform Dream11 and premises linked to its Co-Founder Bhavit Sheth, according to Storyboard18.
Notably, the search operations were part of a money-laundering investigation connected to an alleged Rs 2,434-crore financial fraud involving Jai Corp Limited. Specifically, the ED conducted search operations under the Prevention of Money Laundering Act (PMLA), involving properties linked to industrialist Anand Jaikumar Jain, a director of Jai Corp, as well as other related business entities.
What Exactly Is The ED Investigating?
As part of the probe, ED officials are examining suspected financial links between Jai Corp, Dream11’s parent company Dream Sports, and Bhavit Sheth. To explain, they are assessing whether misappropriated funds in the iJai Corp case were layered through associated entities, including technology and sports gaming firms.
Notably, the money-laundering case originates from a Central Bureau of Investigation (CBI) First Information Report (FIR) registered against Anand Jain, Jai Corp, and others, after the Bombay High Court directed the central agency to constitute a special investigation team (SIT) to probe alleged large-scale financial irregularities.
These allegations include misuse of funds, defrauding investors, round-tripping of money through shell companies, and the creation of fictitious invoices, among others. And the ED’s search operations spanned several cities, including Mumbai, Nashik, Bengaluru, and Raipur.
Importantly, such enforcement actions have intensified following the ban on online real-money gaming (RMG) under the Promotion and Regulation of Online Gaming Act (PROGA). Taken together, this raid adds to a growing number of ED actions in the sector after the online RMG ban took effect under PROGA.
ED Action Against RMG Companies
In November 2025, the ED raided the offices of Gameskraft and WinzO, conducting searches in the Delhi-NCR and Bengaluru area amid allegations that these companies’ app algorithms were rigged to disadvantage players. The investigation also found that promoters held cryptocurrency wallets suggestive of potential money-laundering through crypto channels.
Meanwhile, another ED investigation has revealed that even after the RMG ban was implemented, several platforms retained significant funds in escrow accounts. Consequently, the ED froze eight escrow accounts linked to Pocket52 and Gameskraft worth approximately Rs 18.57 crore, and identified about Rs 30 crore held by Gameskraft that the company apparently withheld from users after the ban. It also found that Winzo held Rs 43 crore without refunding customers.
Additionally, the ED’s Gurugram office attached over Rs 117 crore in assets held by Probo Media Technologies and the family members of the company’s directors in a separate money-laundering case.
All these developments reflects a broader pattern in which the money laundering watchdog in India is moving from regulatory compliance checks to forensic scrutiny of past operations, financial flows, and alleged proceeds of crime linked to gaming firms affected by the RMG prohibition.
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Why This Matters
The recent ED actions underline how India’s enforcement agencies are approaching the online gaming sector in the aftermath of the RMG ban under the PROGA law. Importantly, these cases do not focus on gameplay alone, instead they examine financial conduct, fund flows, and past liabilities of companies that operated before the ban. Consequently, firms now face scrutiny not only for alleged violations of gaming laws but also under broader financial and anti-money-laundering statutes.
At the same time, these investigations signal heightened risks for investors, founders, and financial partners associated with the sector. As the ED probes escrow accounts, crypto holdings, and historical transactions, companies must demonstrate clear segregation of user funds and compliance with refund obligations after the ban.
Moreover, the pattern of searches, freezes, and asset attachments suggests that enforcement may extend well beyond active platforms to cover legacy operations and related entities.
Taken together, these developments shape how the gaming industry winds down, restructures, or pivots, while also influencing how regulators, banks, and investors assess exposure to the sector in a post-PROGA environment.
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