WINZO USED AI TO SIPHON OFF RS 3,522 CR

NEWS: Gaming platform WinZO Pvt Ltd used bots and AI algorithm profiles to cheat users and generated Rs 3,522 crore in proceeds of crime, according to the Enforcement Directorate (ED).

THE ISSUE

• For providing these RMG (Real Money Games) services, the company charges a certain percentage of the betting amounts to users as commission
• The company also assured its users that its gaming platform is free from any bots and is transparent and secure
• An analysis of the game codebases, third-party developer agreements and internal communications revealed that the RMGs were embedded with bots/AI/algorithm profiles
• WinZo also failed to return legitimate user winnings and deposit amounts of Rs 47.66 crore even after the Centre banned the RMGs.
• Evidence found in seized electronic devices further revealed that this “manipulative” gaming structure caused severe financial and mental distress and suicidal tendencies to users