The operator of several high-profile sweepstakes casinos is facing a class-action lawsuit in New York. Blazesoft runs brands like Fortune Coins, Zula Casino, and Sportzino, with the plaintiff in the case claiming that these sites violate the state’s gambling laws and consumer protection rules.
Sweepstakes Coins or Fortune Coins that are exchangeable for real money
The crux of the lawsuit is the dual-currency system that sees players buying virtual coins with real money that have no value alongside Sweepstakes Coins or Fortune Coins that are exchangeable for real money. The plaintiffs argue that Blazesoft is offering illegal gambling products rather than sweepstakes products.
Another focus of the lawsuit is the allegedly misleading ads that Blazesoft runs on social media, which often promise large payouts and feature exaggerated images. It also notes how the minimum age requirement for these platforms is just 18 years old, which violates New York’s 21-year-old gambling age.
The complaint is seeking class-action status so consumers who spent money on these sweepstakes casinos get refunded and for the operations to be halted. This is the latest legal action against sweepstakes casino operators across the country, as regulators also move to crack down on them.