Sweepsngakes Company Blazesoft Hit with Class Action Lawsuit in New York

This newest legal action coincides with rising regulatory scrutiny against New York sweepsngakes operators as the state seeks to ban such offeringsImage Source: Shutterstock.com

Blazesoft Ltd., the Canadian company behind several successful online sweepsngakes casinos, now faces substantial legal scrutiny. A class action lawsuit filed in the US District Court for the Southern District of New Yorkalleges that the company and its affiliated brands have been running unlawful gambling under the guise of sweepsngakes entertainment.

The Platforms Allegedly Operated Like a Casino

The legal complaint, filed by Autumn Boatnerand representing a collection of New York residents, targets three primary Blazesoft platforms: Sportzino, Zula Casino, Fortune Coins, and their operating arms. The lawsuit revolves around the allegation that the platforms use a dual currency system to circumvent New York’s stringent gambling laws.

Players using these websites purchase virtual“Gold Coins” for entertainment use. However, these purchases come with bonus “Sweeps Coins” or “Fortune Coins” that can be wagered on games of chance and, crucially, redeemed for real money. Boatner’s attorneys contend that this mechanism is aclever workaroundintended to replicate a sweepsngakes model legalized by law while secretly operating as a full-blown online casino.

If users win Sweeps Coins after wagering them on these games, they can be redeemed for real currency much like casino chips can be exchanged for cash in a brick-and-mortar casino.

Autumn Boatner vs Blazesoft Ltd.

The platforms mentioned in the lawsuit include offerings similar totraditional casino stapleslike online slots, bingo, and other games of chance. State law defines an activity as gambling if it involves betting something of valueon an uncertain event. The lawsuit contends that the requirement to purchase Gold Coins to access the redeemable sweepsngakes currency means real money is on the line.

Sweepsngakes Face Increased Scrutiny Nationwide

Boatner’s complaint also condemns the platforms’ aggressive and misleading social media marketing strategies and their lack ofresponsible gambling tools. The lawsuit also notes that playersas young as 18can participate despite New York’s minimum legal gambling age of 21. Boatner also complains about complex and often ambiguous payout requirements, forcing users to keep paying to become eligible for a cashout.

Defendants allow anybody over the age of 18 to gamble on its casino platforms in complete disregard of the laws barring individuals under the age of 21 from gambling.

Autumn Boatner vs Blazesoft Ltd.

Blazesoft’s legal woes coincide with rising regulatory scrutinyregarding sweepsngakes in the USA. New York has been one of the most active statesin cracking down on this business model. Legislation introduced by State SenatorJoseph Addabbo Jr. aims to ban sweepsngakes casinos in the state. High-profile platforms like Real Prize have already responded to these developments, announcing their exit from New York.

If successful, the lawsuit against Blazesoft could accelerate the exodusof online sweepsngakes casinos from New York and potentially invite similar legal actionagainst other companies in the sector. As the sweepsngakes model faces an increasingly hostile regulatory environment, it is becoming increasingly clear that such businessesmust adapt to the new reality or risk exiting key US markets.