ETtech Explainer: Winzo founders’ arrests, centre’s fraud charges a moment of reckoning for Indian gaming

In a double whammy for the Indian online gaming sector, the Enforcement Directorate (ED) arrested the founders of gaming unicorn Winzo today, while yesterday, the union government told the Supreme Court that the industry is a conduit for financial fraud, money laundering, and terror financing.

The twin developments come in the backdrop of the Promotion and Regulation of Online Gaming Act, 2025, which imposed a blanket ban on real money gaming (RMG), shifting the state’s stance from regulation to prohibition.

Here’s a look at the latest crisis in…