Federal judge Clay D. Land sent Georgia Gambling Recovery LLC’s lawsuit against Zula Casino’s operator and two Blazesoft companies back to Georgia state court on November 3, 2026. His order grants the plaintiff’s request to return the case to the State Court of Muscogee County.
The case names Blazesoft Ltd., Blazegames, Inc. and SCPS LLC, which operates as Zula Casino. The defendants moved the action to the U.S. District Court for the Middle District of Georgia in June. The federal case carries the number 4:26-cv-00914-CDL. The docket identifies the defendants and removal date.
Why the arbitration agreement failed to establish federal jurisdiction
The companies relied on the New York Convention, an international agreement concerning arbitration agreements and foreign arbitral awards, to establish federal jurisdiction. Land found that Georgia Gambling Recovery had neither signed the arbitration agreement nor agreed to be bound by it. He also rejected the defendants’ argument that Georgia law allowed them to enforce the agreement against the company.
Georgia Gambling Recovery seeks relief under the state’s gambling-loss recovery statute. Land explained that its asserted right to relief arose from that statute, rather than a contract containing an arbitration clause. He concluded that the defendants had failed to establish federal jurisdiction and directed the clerk to remand the action. The November 3 order sets out his reasoning.
Why the VGW, Blitz and Dabble cases stayed in federal court
On October 28, Land had kept the same plaintiff’s separate cases against VGW, Blitz Studios and Dabble in federal court. Those cases involved diversity jurisdiction, which depends on the parties’ citizenship and the amount in dispute. The court found those requirements satisfied. The Blazesoft case relied on a different jurisdictional basis through the arbitration convention. The October 28 order covers those three cases.
The November 3 ruling places the gambling-loss claim back before the State Court of Muscogee County for further proceedings on the underlying allegations.
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