Class Action Lawsuit Calls Sportzino, Zula Casino Illegal ‘Gambling Traps’

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A proposed class action lawsuit out of Illinois alleges that Sportzino and Zula Casino are illegal online “gambling traps” disguised as harmless, free-to-play gaming platforms.

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According to the 36-page lawsuit, several states, including Illinois, have laws prohibiting the operation of real-money online casinos. The complaint claims Blazesoft, the company behind Sportzino and Zula Casino, attempts to circumvent these online gambling restrictions by deceptively marketing the platforms as “sweepstakes” casinos—i.e., sites and apps where users can play slots, bingo and other casino-style games without having to wager money.

As part of their predatory scheme, Sportzino and Zula Casino offer players two types of virtual currencies—Gold Coins, which are used to play “free” casino games and hold no monetary value, and Sweepstakes Coins, which can be wagered on casino-style games and redeemed for real cash, the case says. Per the suit, Sweeps Coins are valued at roughly a 1:1 ratio with the U.S. dollar.

Although the platforms insist that players can obtain Sweeps Coins for free through various promotions, the only advertised way of accumulating these tokens is to purchase bundled packs of Gold Coins and Sweeps Coins.

“This dual-currency structure effectively converts what appears to be an innocuous gaming platform into an unregulated online casino where players use real money to gamble on games of chance,” the lawsuit charges.

As unlicensed casinos operating without regulatory oversight, Sportzino and Zula Casino significantly undermine critical consumer protections mandated by Illinois law, the case alleges. For instance, the platforms illegally allow gambling for individuals under the age of 21 and fail to provide meaningful resources to address problem gambling, the suit contends.

The complaint argues that Blazesoft’s misconduct creates a “dangerously misleading environment” that’s particularly harmful to younger audiences and individuals susceptible to gambling addiction.

“By creating an illusion of risk-free entertainment, Defendants’ platforms manipulate users into participating in activities that carry severe financial and emotional consequences,” the case contends. “Many players are misled into believing they are engaging in harmless gaming, only to find themselves spending significant sums of money chasing Sweeps Coin winnings.”

The lawsuit looks to represent anyone in the United States who has lost money wagering on online casino games offered by Sportzino or Zula Casino.

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