Coordinated Sweeps Across Major Cities

The investigation rapidly escalated with coordinated raids at 11 locations across Bengaluru, Delhi, and Gurugram. ED teams visited corporate offices and the residences of senior executives from prominent industry firms.

During the operations, authorities questioned staff regarding bank account documentation and certifications related to Random Number Generator (RNG) compliance. Investigators mirrored electronic devices, inspected server rooms, and seized hard drives, emails, and internal logs. Reports indicate that in some instances, officials noted delays in cooperation, adding tension to the proceedings.

Focus on Algorithms and Money Flows

The scope of the probe has deepened into the technical and financial machinery of these platforms:

• Algorithmic Integrity: Companies were asked to explain their gameplay algorithms and outcome generation mechanisms to disprove manipulation. This aligns with recent police complaints alleging unfair game behavior.

• Financial Scrutiny: The ED is investigating potential money laundering, specifically examining the use of cryptocurrency channels. The review aims to map fund flows between players, companies, and third-party platforms to identify unexplained transfers or reporting gaps.

Regulatory Uncertainty: PROGA 2025

This enforcement crackdown comes at a critical time. The Promotion and Regulation of Online Gaming Act (PROGA) 2025 awaits full notification, leaving the industry in a precarious position. Operators are now forced to navigate strict enforcement measures before the official regulatory rulebook is even finalized, creating significant operational pressure.