ED attaches Rs.1.9k-crore assets of Gameskraft in money-laundering probe
MUMBAI, July 25 -- The Enforcement Directorate (ED) has provisionally attached assets worth Rs.1,906 crore as part of its money-laundering probe into real-money gaming cases, particularly rummy, through mobile apps. The attachment was made through an order issued on Wednesday.
ED officials on Friday said that the attached properties were linked to Gameskraft Technologies Private Limited, its shareholders and associated entities. The assets include bank balances, fixed deposits, mutual funds, convertible notes, equity shares, a farmhouse, and multiple residential and commercial properties held in the names of the firm's shareholders, their family members, private family trusts, and various associated entities.
The ED named two firms, Gameskraft Technologies and RummyTime Technologies Private Limited, which have allegedly been engaged in real money gaming through mobile apps such as RummyCulture, RummyPrime, Playship and RummyTime. The platforms had a user base of around 30 million across the country including Maharashtra and derived substantial revenues by charging platform commission ranging from 10 per cent to 15 per cent on the wagering amounts deposited by users.
The ED initiated its investigation on the basis of multiple FIRS of cheating registered by the Telangana police. The probe revealed that a significant number of users were located in states where online real money gaming was banned, including Telangana, Andhra Pradesh and Tamil Nadu.
The ED's investigation further revealed that while assuring users that the gaming platforms were transparent, fair and free from automated players/algorithms (BOTs), the latter were allegedly deployed against gullible users without their knowledge. The use of BOTs allegedly resulted in substantial financial losses to the users while generating proceeds of crime for the accused.
The investigation also revealed that the companies allegedly adopted deceptive and addictive user acquisition and retention strategies. Up to Rs 1,035 crore was allegedly spent on marketing and promotional campaigns to acquire new users, who were lured through bonuses, referral incentives, free tournament entries and promotional rewards.
The accused also allegedly imposed restrictive withdrawal mechanisms, including a withdrawal levy ranging from 5% to 10% in certain cases, and also motivated users to convert withdrawable balances into non-withdrawable 'Game Cash' through 'Super Booster' offers. Dormant users.
So far, the total value of proceeds of crime in the case attached, frozen and seized during the course of investigation stand at Rs 2,401 crore....
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