Sportzino, a social gaming brand operated by Ontario-based Blazesoft, has exited the Tennessee market following a cease-and-desist order from the Tennessee Sports Wagering Council (SWC). The platform, which combined free-to-play sports predictions with casino-style games, had been flagged by regulators for operating unauthorized sweepstakes betting in the state.
On September 18, the SWC confirmed that Sportzino had stopped offering its services in Tennessee. The platform, launched in late 2023, is one of several under Blazesoft’s umbrella, which also includes Fortune Coins, Zula Casino, and Yay Casino.
Sportzino’s games—more than 1,000 in total—closely resemble traditional online casino offerings, including slots and sports-based predictions. The SWC stated that such offerings, especially those involving chance-based outcomes, signal illegal operations under Tennessee law.
Not the First Platform Forced Out
Sportzino’s exit is the latest in a string of enforcement actions by the SWC. The council previously forced offshore operator Bovada to leave the state in November 2024, followed by Legendz in April 2025. According to the SWC, both brands shut down following similar cease-and-desist notices.
Tennessee, the largest online-only sports betting market in the U.S., recorded $5.6 billion in wagers in the last fiscal year through licensed operators. The SWC has imposed $600,000 in fines across 12 illegal sportsbooks to date, including $200,000 in July 2025 alone against companies like BetAnySports and BetOnline.
Legal Questions Extend Beyond Tennessee
Blazesoft has faced scrutiny in other jurisdictions as well. In April 2025, the company was named in a class-action lawsuit in New York, accused of facilitating real-money gambling through a sweepstakes model. Though Sportzino and its sister platforms claim to be free-to-play, critics argue that their dual-currency systems mimic real-money casinos.
Tennessee regulators advise consumers to be wary of platforms that offer casino games or bets on events of chance. Other warning signs include extending credit, minimal age verification, and allowing users to wager with credit cards—all of which are prohibited under Tennessee law.
Consumer Protection at the Forefront
The SWC insists that enforcement is about more than legal compliance—it’s also about safeguarding users. “Offering sports wagering in Tennessee is a taxable privilege, and we’re exploring every tool available to us as regulators in our effort to shut down illegal sportsbooks,” said SWC Executive Director Mary Beth Thomas.
“Licensed sportsbooks offer critical consumer protections that unlicensed operators do not, and we will continue to work with our law enforcement partners in this effort,” she added.
The council is also working with the Tennessee Attorney General’s Office to convert civil fines into enforceable judgments, allowing the state to pursue assets tied to unauthorized operators.
Additionally, the SWC has raised alarms about prediction market platforms such as Kalshi, Robinhood, and Crypto.com. In a letter to the Commodity Futures Trading Commission (CFTC), Thomas urged federal regulators to honor Tennessee’s legislative stance and not permit the offering of sports-related event contracts.
Source:
“Sportzino No Longer Offering Services In Tennessee”, tn.gov, Sep 18, 2025.
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