2025 has been nothing short of a judgement year for India’s real-money gaming (RMG) industry. With sweeping regulatory changes coming into force, several startups, including gaming unicorns, were forced to pause their core RMG operations, while others attempted hurried pivots.

What unfolded at WinZO, once hailed as the poster child of India’s gaming startup ecosystem, proved far more unsettling.

After the Promotion and Regulation of Online Gaming Act (PROGA) imposed a de facto ban on RMG, WinZO announced a strategic pivot. The company said it was entering the US market to tap one of the world’s most ‘mature and lucrative gaming ecosystems’, leveraging what it described as its ‘plug-and-launch’ distribution model.

Within India, it expanded into adjacent categories, rolling out a short-video product, Zo TV, and experimenting with offerings such as digital gold. For a brief moment, it felt like the company was finding its footing amid the regulatory upheaval.

But this was merely the calm before a bigger storm.

In November, the Enforcement Directorate (ED) arrested WinZO cofounders Saumya Singh Rathore and Paavan Nanda under provisions of the Prevention of Money Laundering Act (PMLA). A month later, a Bengaluru sessions court granted bail to Rathore but denied bail to Nanda, leaving one cofounder behind bars as legal uncertainty continued to loom over the company.

With one cofounder out on bail and the other still facing judicial scrutiny, WinZO is currently operating under severe strain. The company has scaled back its operations significantly.

Sources told Inc42 that the RMG startup is currently running on a lean setup, with 70% of its workforce having exited in recent months.

Also, with INR 700–880 Cr frozen, cash flows have become a major issue. It only has around INR 15 Cr in usable funds. Only a minimal number of employees are coming to the office to ensure compliance, while salary payments to existing staff and dues to........

© Inc42