Blazesoft Sweepstakes Operator Faces Class Action Lawsuit in New York

New York resident Otem Boutner has filed a class action lawsuit against the operator Blazesoft, accusing the company of legal violations related to the operation of its Zula Casino, Sportzino, and Fortune Coins brands.
The lawsuit was filed in the U.S. District Court for the Southern District of New York and includes allegations that Blazesoft’s games are a “predatory scheme” and are falsely marketed as social casinos.
This legal claim has attracted attention not only from the legal community but also from users who have been harmed by such activities.
Key Allegations Against Blazesoft
According to the documents filed with the court, the plaintiff’s legal team claims that Blazesoft uses a dual currency system: Gold Coins and Sweeps Coins. This system prevents players from cashing out their winnings unless they accumulate a minimum of 50 Sweeps Coins and meet “intentionally confusing” criteria for withdrawal.
Although the terms of service state that the sites do not offer real-money gambling, the Gold Coins pricing structure indicates that players are actually paying for Sweeps Coins.
This is a clear violation, as the plaintiffs argue that this system forces players to spend real money on virtual currency that cannot be withdrawn without fulfilling complicated conditions.
Legal Violations and User Rights Infringements
The lawsuit also claims that the minimum age for participating in the games is 18, whereas gambling is only permitted in New York for individuals aged 21 and older.
This is another important element in the allegations against the company. In other words, Blazesoft is ignoring local laws, as evidenced by a recent review of the terms for players.
Lawsuit Filing and Potential Consequences
The plaintiff, Otem Boutner, claims to have lost over $50 playing these games.
The lawsuit also notes that the goal is to recover these funds under New York state law, which allows compensation for losses under acts that have been in place since 1963, with recent amendments in 2023.
Boutner’s legal team stated that the lawsuit affects all New York residents who lost money on Blazesoft’s games within three months prior to the filing.
Dual Currency System and Its Implications
According to the legal team’s claims, Blazesoft uses two currencies, Gold Coins and Sweeps Coins, as part of a scheme that hides real casino operations behind the facade of social gaming.
Players are forced to purchase Gold Coins in exchange for bonus Sweeps Coins but then face challenges when attempting to withdraw them.
These conditions are intentionally confusing to prevent players from withdrawing their funds.
Withdrawal Issues and Age Restrictions
Furthermore, the use of the Sweeps Coins system forces players to remain within the platform and spend money on virtual currencies that cannot be converted into real money.
Plaintiffs argue that Blazesoft deceives its users in this way, which constitutes a direct violation of both ethical and legal standards.
Company Statements and Reputation
Blazesoft claimed in a 2023 press release to have experienced “impressive growth and market dominance,” asserting that it attracted over 4 million users in the U.S. and Canada in just two years.
However, the lawsuit asserts that the Fortune Coins, Sportzino, and Zula brands are “fake companies” that do not have offices, employees, assets, or control over the aspects of online casinos they allegedly manage.
Legal Response and Future of the Case
The claim that Blazesoft’s companies do not actually exist as real entities is a central argument in the lawsuit, which exposes false claims made by the company regarding its operations.
The lawsuit also highlights that these websites operate with blatant disregard for casino and gambling laws, creating a dangerous practice for users.
What’s Important for Users?
- Players should be aware that such platforms may disguise real casinos as social games.
- The platforms use mechanisms that make it impossible to withdraw funds unless players meet a series of conditions.
- Legal consequences may include refunds for those who have been harmed by Blazesoft’s dishonest system.
This lawsuit signals to all users that it is important to carefully monitor the platforms they play on and stay informed about possible violations that may affect their finances.