Blazesoft Sued Over Illegal Casino Operations in New York

Blazesoft Inc. is the subject of a new class action lawsuit filed in the U.S. District Court for the Southern District of New York, with the company and three of its online brands—Fortune Coins, Sportzino, and Zula Casino—accused of running unlawful gambling platforms under the guise of sweepstakes models.

The lawsuit was brought forward by Autumn Boatner, a resident of New York, who claims she suffered financial losses while participating in Blazesoft’s gamesduring 2024. Her legal filing extends beyond her own experience and proposes a class that includes all New York-based s who spent money on Blazesoft’s platforms. An additional subclass has been proposed to represent s who lost at least $25 within a three-month period prior to the suit.

Allegations Center on Dual-Currency Structure and Lack of Oversight

At the heart of the complaint is Blazesoft’s dual-currency system, which is presented as a free-to-play sweepstakes format but allegedly functions as a real-money gambling operation. Players can purchase Gold Coins and, in doing so, receive an equivalent amount of Sweeps Coins, which are used to participate in games that offer real-money redemptions.

“For every dollar spent on Gold Coins, players receive a proportional number of Sweeps Coins, exposing Gold Coins as a thin veil concealing the reality that players are effectively purchasing Sweeps Coins to engage in real-money virtual gambling,” the complaint states.

Boatner alleges that this setup constitutes an unregulated and illegal gambling operation targeting New Yorkers. The lawsuit further accuses Blazesoft of failing to obtain proper licenses, allowing underage gambling, and not providing adequate responsible gambling resources. The complaint asserts that these issues disproportionately impact young players and individuals vulnerable to gambling addiction, who are often drawn in by the company’s social media promotions.

“Defendants’ misconduct inflicts particularly severe harm on vulnerable populations, including individuals predisposed to gambling addiction and younger consumers targeted through ‘free play’ marketing,” the legal filing continues.

Structural and Operational Legitimacy Questioned

In addition to challenging the legality of the casino games themselves, the lawsuit scrutinizes the legitimacy of the corporate structures behind them. It alleges that Zula, Sportzino, and Fortune Coins are “sham corporate shells” ed in Delaware without any real presence—no staff, physical offices, or assets.

The suit also notes that the platforms’ and conditions are nearly identical, which Boatner argues further s the claim that these are not independent operations but rather facades for a single overarching enterprise run from Ontario, where Blazesoft is headquartered.

The content of the games is also being challenged, with the lawsuit stating that the platforms offer chance-based games like slots and bingo, where outcomes are determined algorithmically without any meaningful role for player skill. This model, the complaint argues, contradicts the sweepstakes or skill-based framing used in the company’s marketing.

Furthermore, the lawsuit criticizes restrictive withdrawal policies, such as requiring players on Zula or Sportzino to win a minimum of 50 Sweeps Coins before they can cash out. It claims these practices violate consumer protection statutes, especially those relating to transparency and fairness.

Boatner and the proposed class are seeking financial compensation equal to their collective losses. They are also demanding that Blazesoft return any profits made through the alleged misconduct and cease offering the challenged services in New York.

Blazesoft has yet to issue a public statement on the matter. According to SBC Americas, the company did not respond to their request for comment at the time of reporting.

Source:

Blazesoft under fire in New York over online casino games, sbcamericas.com, April 21, 2025.