A class action lawsuit has been filed in the U.S. District Court for the Southern District of New York, adding to the growing legal pressure on online sweepstakes casinos.
The complaint, brought by Autumn Boatner on behalf of New York consumers, targets several popular platforms, including Sportzino, Zula Casino, and Fortune Coins, accusing them of violating state gambling laws and consumer protection regulations.
The defendants named in the case include the operators of these sites and their Canadian parent companies, Blazesoft Ltd. and Blazegames Inc. Boatner argues that the companies are running illegal gambling operations, cleverly disguised as sweepstakes casinos to sidestep New York’s strict gambling rules.
At the center of the lawsuit is the claim that these sites use a misleading dual-currency system. Players purchase “Gold Coins” that are supposedly just for entertainment. But those purchases also come with “Sweepstakes Coins” or “Fortune Coins,” which can be used to play slot-style games and even redeemed for cash. The lawsuit argues this setup is a calculated way to make real-money gambling appear legal.
Boatner also claims the games offered, including virtual slots and bingo, are based entirely on chance, making them illegal under New York law when real money is involved. The platforms, she says, operate without proper licenses and promote their services through flashy, misleading ads on social media platforms like Facebook, Instagram, and TikTok.
The lawsuit further points out that users as young as 18 can access these sites, despite the legal gambling age in New York being 21. It also alleges that the companies fail to provide any support or disclosures related to problem gambling, putting users at greater risk.
Another concern raised in the suit is the use of “playthrough” requirements, which are rules that force players to keep betting before they’re allowed to withdraw any winnings. These restrictions, the lawsuit argues, often trap users in a cycle of spending more money just to access what they’ve already won.
Boatner claims she lost over $50 on each platform and is seeking to recover those losses under New York’s Loss Recovery Statute. She’s also pursuing claims of false advertising, deceptive business practices, and unjust enrichment.
The lawsuit seeks to certify a class of New York users who spent or lost money on these sites, and calls for restitution, forfeiture of profits, and a court order to shut the operations down.
This case is part of a broader legal wave challenging the sweepstakes casino model in the U.S. For years, these platforms have operated in a regulatory gray zone, using loopholes like dual currencies and “free-to-play” labels. But as lawsuits mount, that may soon change.
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