Legal Pressures Push Sportzino Out of Tennessee Sweepstakes Scene

Blazesoft’s Sportzino is the latest sweepstakes casino operator to pull out in one of its markets. According to the Tennessee Sports Wagering Council (SWC), Sportzino ceased operations in the state as of September 18th. Sportzino’s abrupt exit is a response to a cease-and-desist order released by the council. 

In its published statement, the council reiterated its campaign to eliminate illegal sportsbooks in the state and to protect the interests of its players and stakeholders through a regulated sports wagering environment. Launched late 2023, Sportzino is expected to reassess its operations due to increasing regulatory pressures.

Tennessee’s SWC Continues Strict Regulations

Sportzino’s decision to shut down its operations follows the exit of Legendz in April and Bovada in 2024. Tennessee, through the SWC, has been active in its campaign to end illegal online sports betting. The council has consistently reiterated its policy to protect the interests of local players and stakeholders by promoting a safe and regulated sports environment.

According to SWC Executive Director Mary Beth Thomas, the operations of sports wagering in Tennessee “is a taxable privilege”, and their team is exploring all resources that regulate and close illegal sportsbooks. Thomas further argued that licensed sportsbooks provide local players with “critical consumer protections’, that aren’t available in unlicensed operators.

SWC’s Committed to Retaining Tennessee’s Leadership in Regulated Sports Betting

The council’s aggressive regulation of sports betting operations is understandable, knowing how important the industry is to the state’s economy. Tennessee is considered the biggest “online-only” sports betting market in the US, with roughly $5.6 billion wagered in the state’s regulated platforms last year.

However, the SWC has been strict with its efforts to keep the betting landscape safe and secure for everyone. Based on records, the state has booked $600k in fines to 12 illegal sportsbook operators, including $200k in July 2025 alone.

State Regulators Warn Players, Offer Tips to Stay Safe

In addition to its strict monitoring of operators, SWC also actively campaigns to educate players. The regularator explained that access to an app or betting site within the state doesn’t mean that the sportsbook is legitimate and authorized to operate. For SWC, players must be mindful of specific red flags, such as:

• Extending credit;
• Minimal or absence of age verification or KYC;
• Accepting real money bets on online poker, casino games, or any chance-based games.

What’s Next for Sportzino?

Sportzino’s game model, which combines sports prediction contests and social casino games, is becoming more vulnerable to regulation. By experience, operators that combine both verticals, like Bovada and Legendz, have already exited the state.

Moving forward, Sportzino may reassess its product model or shift to states with clearer or friendlier regulatory frameworks. However, the shrinking market for US sweepstakes casinos and ongoing inquiries may stifle Sportzino’s expansion into other states.

REFERENCES:

• Swift
• Tennessee Sports Wagering Council (SWC)