A class action lawsuit filed in the US District Court for the Southern District of New York targets online sweepstakes casino operator Blazesoft and its three brands. The lawsuit was filed by plaintiff Autumn Boatner on behalf of Empire State bettors who wagered real money.
Blazesoft Lawsuit Includes Fortune Coins, Sportzino, And Zula Casino
The lawsuit alleges that multiple online casino operators — Fortune Coins, Sportzino, and Zula Casino — have been violating New York’s consumer protection statues and gambling laws.
In addition to the aforementioned platforms, the other defendants named in the case include the gaming sites’ Canadian parent companies, Blazesoft Ltd. and Blazegames, Inc.
Boatner, a New York resident, is taking legal action against Blazesoft after playing its online casino games in 2024 and losing real money because of its sweepstakes model.
The plaintiff argues that these gaming companies are operating illegal gambling platforms and misleading the general public through the use of their dual-currency system.
Boatner’s recovery subclass in the case includes any person in New York who has lost $25 or more wagering with the online platforms within three months of filing.
Fortune Coins, Sweepstakes Coins Can Be Redeemed For Real Money
Players are able to purchase Gold Coins, which have no cash value. However, Fortune Coins and Sweepstakes Coins can be used to wager on games of chance and redeemed for real money.
Boatner contends that the dual-currency system is essentially an attempt to circumvent gambling laws by disguising real-money wagers as sweepstakes promotions.
“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,” reads the complaint.
The sweeps sites provide casino-style games such as virtual slot machines, where the outcomes are determined by chance. Under New York law, free-to-play games can still be classified as gambling if they involve risking something of value on a chance-based outcome.
Under New York Penal Law Article 225, “Something of value” means “any money or property, any token, object or article exchangeable for money or property, or any form of credit or promise directly or indirectly contemplating transfer of money or property or of any interest therein, or involving extension of a service, entertainment or a privilege of playing at a game or scheme without charge.”
Regarding a coin operated gambling device, Article 225 also states, “a machine which awards free or extended play is not a gambling device merely because such free or extended play may constitute something of value provided that the outcome depends upon the skill of the player and not in a material degree upon an element of chance.”
Blazesoft has also allegedly violated New York law by allowing patrons under the age of 21 to wager.