A new class action lawsuit filed in New York federal court is putting sweepstakes operator Blazesoft Ltd. under serious legal fire, accusing the company of running unlicensed online casinos under the label of sweepstakes gaming.
Filed in the U.S. District Court for the Southern District of New York, the complaint alleges that Blazesoft and its three major platforms — Zula Casino, Sportzino, and Fortune Coins — have been unlawfully offering casino-style games to players in New York. The suit argues that the company’s “sweepstakes model” is really just a front that misleads players into thinking they’re engaging with legal sweepstakes, when in reality, they’re wagering for real cash prizes without proper oversight or a gambling license.
What the Lawsuit Says
The lawsuit was filed by Autumn Boatner, a New York resident who says she lost money on Blazesoft’s platforms, and is now seeking compensation for herself and other New Yorkers who also used the sites and lost money.
At the center of the case is Blazesoft’s use of a dual-currency system, a setup that is common to sweepstakes casinos. Players buy Gold Coins, which are marketed as fun-play tokens with no cash value. But with every purchase, they’re also given Sweeps Coins, a separate currency that can be used to play games for real cash prizes.
The lawsuit argues that Blazesoft’s setup isn’t as harmless as it looks. Instead of being truly “free-to-play,” it functions as a backdoor to real-money gambling, without state licensing, regulation, or oversight.
“For every dollar spent on Gold Coins, players receive a proportional number of Sweeps Coins,” the lawsuit states, “exposing Gold Coins as a thin veil concealing the reality that players are effectively purchasing Sweeps Coins to engage in real-money virtual gambling.”
Casino Games, Big Promises With No Regulation
According to the lawsuit, Blazesoft’s platforms offer classic games of chance like slots and bingo, which are all powered by algorithms with no element of skill. And this qualifies as gambling under the New York law.
The lawsuit also says Blazesoft runs aggressive and misleading ad campaigns across social media. On platforms like Facebook, Instagram, and TikTok, their ads reportedly use flashy graphics and big-win promises to reel in players, especially younger ones.
On top of that, the platforms also let users as young as 18 sign up, even though the legal gambling age in New York is 21. The lawsuit also claims Blazesoft doesn’t offer basic safeguards like responsible gaming tools or addiction support, which are standard requirements for licensed casinos.
What the Lawsuit Wants
Boatner’s trying to represent anyone in New York who’s spent money playing on Blazesoft’s sites: Zula Casino, Sportzino, and Fortune Coins. She’s also calling out a smaller group of players who lost at least $25 in the three months leading up to the lawsuit.
She’s asking the court to:
- Call out the sites as illegal gambling
- Stop the companies from misleading players with ads
- Force Blazesoft to pay back users and give up any profits
- Highlight the lack of basic protections like age checks or fairness tools
- Address the fact that players under 21 were allowed to use the sites, which breaks New York law
The suit also demands that Blazesoft pay back lost money, give up any profits tied to the alleged misconduct, and stop operating in New York altogether.
But Boatner’s lawsuit doesn’t just go after how the games work, it also questions who’s behind them.
While Zula, Sportzino, and Fortune Coins are officially registered in Delaware, Boatner claims that’s just a formality. According to the suits, the sites have no actual offices, staff, or assets in the U.S., and are instead run out of Ontario, Canada, where the parent company is based.
The terms and conditions across all three platforms are nearly identical, which is further proof that they’re essentially clones, shell companies that were created to avoid legal oversight.
The suit also calls out how hard it can be to cash out. For example, both Zula and Sportzino reportedly make players win at least 50 Sweeps Coins before they can redeem any real money. Boatner argues this system tricks players into spending more, while chasing winnings that are harder to reach than they first appear.
The Bigger Picture
The case against Blazesoft comes as pressure on sweepstakes casinos ramps up across the U.S.. Across the U.S., sweepstakes casinos are facing growing heat, from class actions to new state bills and regulatory restrictions. What used to be a gray area is starting to look more like a red zone.
Boatner’s case could be a tipping point. If the court agrees that Blazesoft’s model crosses the line into illegal gambling, it could reshape how these platforms operate, not just in New York, but nationwide. That kind of ruling might push lawmakers and regulators to finally tighten the rules, clarify the laws, and start holding sweepstakes casinos to real standards.
As of now, Blazesoft has not issued a public comment in response to the allegations.