India, June 10 -- Nearly a year after regulatory crackdowns crippled its real-money gaming (RMG) business, WinZO is locked into multiple battles. With bank accounts frozen by the Enforcement Directorate (ED), months of outstanding salaries and employee exits mounting, the startup is scrambling to build new revenue streams.

"Close to 130 employees have not received their salaries since January. WinZO Games, which had around 220 employees in August last year, has seen several exits after the government pulled the plug on the industry overnight," sources close to the company said.

They added that employees seeking to resign immediately due to growing financial pressures are being required to serve notice periods of up to three months befor...