Sportzino, a social gaming and sportsbook platform operated by Canadian company Blazesoft, has exited the Tennessee market after being ordered to cease operations by the state's Sports Wagering Council (SWC). The council confirmed last week that Sportzino had ended its online sweepstakes sports gaming activities in Tennessee.
Key Takeaways
- Sportzino, owned by Blazesoft, withdrew from Tennessee
- The enforcement is part of a broader Tennessee crackdown on unlicensed online gambling
- Regulators point out that licensed sportsbooks provide consumer protections absent from offshore or sweepstakes-based operators
Launched in late 2023, Sportzino combined social casino-style games with free-to-play sports and esports contests. It offered more than 1,000 titles, many resembling traditional casino offerings.
The shutdown places Sportzino alongside Bovada and Legendz, which also left Tennessee after receiving similar regulatory directives in the past year.
The SWC has stepped up enforcement against unlicensed operators, issuing $600,000 in fines to 12 platforms so far. Regulators argue that illegal sportsbooks deprive the state of tax revenue and fail to meet consumer protection standards, such as preventing underage gambling and prohibiting credit card wagering.
Executive Director Mary Beth Thomas said licensed operators uphold protections not present with unlicensed firms and that enforcement will remain a priority in Tennessee's $5.6 billion online-only betting market.
VGW to end promotional play in Mississippi
The enforcement push against sweepstakes models has extended beyond Tennessee. In June, VGW, the parent company of Chumba Casino, LuckyLand Slots, and Global Poker, announced that it would discontinue its Promotional Play (Sweeps Coins) in the neighboring state of Mississippi, effective July 31.
The phased shutdown began with halting Sweeps Coin collection, followed by ending play on Aug. 14, and stopping redemption requests by Sept. 4. Customers were told they could continue using Gold Coins for non-cash play after that date.
VGW's move followed a cease-and-desist order from the Mississippi Gaming Commission, which targeted several unlicensed platforms. Chumba was the only sweepstakes operator named. Other platforms, including Pulsz Casino, Baba Casino, and Sidepot Casino, also list Mississippi as restricted.
Tennessee pushes back on prediction markets
Tennessee's SWC has also weighed in on prediction markets. In April, the council sent a letter to the Commodity Futures Trading Commission (CFTC) opposing sports event contracts offered by firms such as Kalshi and Robinhood.
Tennessee pushing back on prediction markets... letter to CFTC below...
— Alfonso Straffon 🇨🇷🇺🇸🇲🇽 (@astraffon) April 15, 2025
"As the Commission reviews these sports events contracts, we ask that you respect the policy decisions made by the Tennessee Legislature and not permit the offering of sports events contracts." pic.twitter.com/KquNTLKSsj
The SWC argued that these contracts amount to wagers under Tennessee law and bypass state protections. The council urged the CFTC to respect Tennessee's legislative framework and prevent such markets from being offered to consumers.
While nearly a dozen states have pushed back on prediction markets, Tennessee has stopped short of issuing direct cease-and-desist letters. Regulators raised concerns about unregulated features such as college player props, injury markets, and payments via cryptocurrency or credit cards, all of which are not permitted in the state's licensed betting industry.
