Blazesoft is facing a class action lawsuit in New York over the alleged operation of illegal online casino games.
According to documents filed in the U.S. District Court for the Southern District of New York, Autumn Boatner has filed a class action suit against Blazesoft and three of its brands. The online casino brands are Zula Casino, Sportzino and Fortune Coins.
Boatner, a New York resident, is taking legal action against Blazesoft after playing its online casino games in 2024 and losing real money due to its alleged illegal sweepstakes model.
Her suit has a class that includes all New Yorkers who have paid money to wager with Blazesoft’s three casino brands. Its loss recovery subclass is any person in New York who has lost $25 or more wagering with the online platforms within three months of filing.
Blazesoft’s online casino model under scrutiny
Boatner alleges Blazesoft orchestrated a predatory scheme to acquire customers by operating unregulated gambling platforms that are falsely marketed as F2P sweepstakes.
The suit claims Blazesoft’s online casinos offer real-money gambling despite having a dual currency “sweepstakes” casino model. The model provides players with the opportunity to play “free” casino games through its in-game currency that is purchased using real money.
The suit uses Fortunate Coins’ dual-currency system to contextualize the alleged misuse.
“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.
Boatner and the suit’s class members accuse Blazesoft of operating unlicensed and illegal online casinos by providing New York residents with the opportunity to use purchased in-game currency to wager on games of chance to potentially redeem real money prizes.
Blazesoft has also allegedly violated New York law by allowing patrons under the age of 21 to wager and for failing to provide gambling addiction resources for problem bettors.
“Defendants’ misconduct inflicts particularly severe harm on vulnerable populations, including individuals predisposed to gambling addiction and younger consumers targeted through ‘free play’ marketing,” continues the complaint. “Defendants aggressively market and promote their online casinos on social media platforms, using deceptive tactics to entice users into engaging with their seemingly harmless games.”
Fake company accusations
The suit claims Blazesoft established the three online casino brands as illegitimate companies as they are “based” in Delaware but have no offices, employees or assets in the state. Blazesoft is based in Ontario also creating operational issues in Boatner’s class action.
The suit also considers the terms and conditions of the online casinos, which are allegedly “virtually identical” and provide further evidence of being “shame corporate shells.”
Blazesoft is also under scrutiny for its alleged illegal offering of games of chance.
According to the suit, the three online casinos allegedly offer casino-style games, including slots and bingo, that have outcomes determined by an algorithm with no skill or strategy.
The suit claims Blazesoft’s online casinos offer games of chance and not F2P skill-based games by providing “the staking of value on a game in which the element of chance predominates over the element of skill.” It also claims Blazesoft’s promotion of the “chance-based” games improperly lures players to gamble due to potential big payouts.
Blazesoft’s playthrough requirements are also an issue raised in the class action. The suit details Zula and Sportzino’s requirement for players to win at least 50 Sweeps Coins before being allowed to cash out and also argues Blazesoft fails to offer consumer protections.
The statutory consumer protections include fairness and transparency safeguards.
Boatner and class members request that the New York District Court enter judgment against Blazesoft in the amount of losses suffered by the plaintiffs. Boatner and class members are also seeking restitution and the “disgorgement of all defendant’s ill-gotten gains.” The group also is requesting Blazesoft to discontinue its alleged misconduct.
SBC Americas reached out to Blazesoft for comment but has yet to receive a response.
