Blazesoft Faces NY Class Action Over Illegal Sweepstakes

​Blazesoft, the Canadian parent company behind popular sweepstakes platforms like Sportzino, Zula Casino, and Fortune Coins, is facing a significant legal challenge in New York.

A class action lawsuit filed in the U.S. District Court for the Southern District of New York accuses Blazesoft and its subsidiaries of operating illegal gambling platforms under the guise of sweepstakes casinos. The plaintiff, Autumn Boatner, alleges that these platforms violate New York’s gambling laws and consumer protection statutes.

At the heart of the complaint is the claim that Blazesoft’s dual-currency system—using Gold Coins and Sweepstakes Coins—effectively facilitates unregulated gambling. Users purchase Gold Coins for entertainment, but these purchases are bundled with Sweepstakes Coins, which can be used to play games of chance and redeemed for real money. This setup, the lawsuit argues, is a calculated attempt to circumvent gambling laws by masking real-money wagers as sweepstakes promotions.

This legal action underscores the growing scrutiny of online sweepstakes casinos operating in legal gray areas. Operators and consumers alike should stay informed about the evolving legal landscape surrounding these platforms.

Blazesoft Under Fire: New York Lawsuit Challenges Legality of Sweepstakes Casinos

Key Points

1. Legal Challenge: Blazesoft and its platforms are accused of violating New York gambling laws through their sweepstakes casino operations.​
2. Dual-Currency Model: The lawsuit targets the use of Gold Coins and Sweepstakes Coins, alleging they facilitate unregulated gambling.​
3. Consumer Protection Concerns: The complaint highlights issues such as underage access, misleading advertisements, and lack of responsible gambling resources.​

Blazesoft, a Canadian company operating popular sweepstakes platforms like Sportzino, Zula Casino, and Fortune Coins, is at the center of a new class action lawsuit filed in the U.S. District Court for the Southern District of New York. The lawsuit, brought by plaintiff Autumn Boatner on behalf of New York consumers, alleges that Blazesoft’s platforms violate state gambling laws and consumer protection statutes.​

The core of the complaint focuses on the dual-currency system employed by these platforms. Users purchase Gold Coins, which are intended for entertainment and have no cash value. However, these purchases are bundled with Sweepstakes Coins or Fortune Coins, which can be used to play games of chance and redeemed for real money. The lawsuit argues that this system effectively disguises real-money gambling as sweepstakes promotions, thereby circumventing gambling laws.​

The complaint also raises concerns about the platforms’ marketing practices. It alleges that Blazesoft’s platforms are widely promoted through targeted advertisements on social media platforms like Facebook, Instagram, and TikTok, often featuring exaggerated visuals and promises of big payouts. These ads, the lawsuit claims, are designed to mislead users into believing the games are harmless or even legal entertainment.​

Additionally, the lawsuit points out that the platforms allow users as young as 18 to access their services, in violation of New York’s legal gambling age of 21. It also alleges that the platforms do not provide legally mandated resources or disclosures to address problem gambling, further compounding the risk to consumers.​

The plaintiff, Autumn Boatner, claims to have lost over $50 on each of the platforms in recent months. She seeks to recover these losses under New York’s “Loss Recovery Statute” and is also pursuing claims under the state’s consumer protection laws, alleging deceptive acts, false advertising, and unjust enrichment. The complaint seeks class certification for a New York-wide class of consumers who purchased or lost money wagering on these platforms, restitution of losses, disgorgement of profits, and injunctive relief to halt the defendants’ operations.​

This lawsuit is part of a broader trend of legal scrutiny facing online sweepstakes casinos in the United States. These platforms have largely operated in a gray area of gambling regulation, using dual currencies and “free-to-play” labels to sidestep licensing requirements. However, lawsuits like this one may prompt courts and lawmakers to reexamine the legality of these platforms and potentially lead to stricter regulations.​

The class action lawsuit against Blazesoft highlights the increasing legal challenges facing online sweepstakes casinos operating in the United States. By scrutinizing the dual-currency models and marketing practices of these platforms, the lawsuit underscores the need for clearer regulations and consumer protections in the rapidly evolving online gambling landscape. As the case progresses, it may set important precedents for how sweepstakes casinos are regulated and operated in the future.