In a major push that could reshape the future of online entertainment, ZOOT, a New York–based sweepstakes gaming startup, has secured $6 million in seed funding. The round was led by CoinFund. With this fresh capital, ZOOT plans to scale its innovative social sweepstakes gaming platform, seamlessly integrate stablecoin payment rails, and introduce a new wave of gaming experiences that blend excitement, speed, and community.

Founded by experienced gaming executive Sean Ryan, former VP at Facebook and leader of multiple gaming ventures, and legal strategist John Cahill, ZOOT is transforming the sweepstakes model into something far more dynamic and accessible. Instead of relying on traditional cash wagering, ZOOT uses a sweepstakes framework, enabling players to enjoy casino-style games and win cash prizes without violating strict US gambling laws. This approach allows ZOOT to operate in most US states and positions the company to expand rapidly.

Merging Crypto Efficiency with Social Thrill

ZOOT’s core appeal lies in its ability to merge social, casino-style gaming with the operational efficiency of blockchain payments. Players can deposit using stablecoins, play sweepstakes slots and other games, and withdraw winnings instantly, bypassing the typical delays and high fees found in traditional online gaming platforms. This model isn’t just about adding crypto as a gimmick - it’s a full rethinking of how payments should work in an era of instant gratification.

As more players seek transparent, secure, and fast ways to manage funds online, ZOOT’s choice to build on stablecoin rails offers a significant competitive advantage. The platform removes the friction of slow bank transfers, reduces fraud, and eliminates chargebacks - pain points that have long frustrated gaming operators and their users alike.

A Blueprint for Founders Everywhere

What truly sets ZOOT apart is not just the technology but the philosophy behind it - a perspective that offers valuable lessons for founders in any industry. Rather than entering a crowded gaming market and simply layering on a “crypto” wrapper, the ZOOT team rethought the business model from first principles.

While many startups in regulated industries try to patch new tech onto old frameworks in hopes of incremental gains, ZOOT took a more radical approach. The founders realized that to create a viral, high-value consumer experience, they needed a model that was globally scalable, community-driven, and fully compliant from day one. By choosing sweepstakes as their foundation, they bypassed the legal minefield that trips up so many gambling startups.

Then, they layered on stablecoins to achieve operational efficiency and tap into a new generation of crypto-native players. The lesson here for founders is clear and profound: Instead of force-fitting innovation into outdated constraints, reimagine the constraints themselves. The startups that become truly transformative don’t just optimize features inside the same old box - they change the shape of the box entirely.

This mindset not only helped ZOOT build a more resilient product but also positioned the company to scale confidently in a fragmented, regulation-heavy market.

Strategic Backing and Growth Plans

CoinFund’s leadership in the seed round underscores confidence in ZOOT’s hybrid gaming and crypto approach. CoinFund has a strong track record of backing pioneers who blend blockchain with mainstream applications, and their support highlights ZOOT’s potential to become a market leader.

Investor confidence is bolstered further by the combined strengths of Ryan and Cahill. Ryan brings deep expertise in scaling games and social experiences to massive audiences, while Cahill ensures the company stays ahead on compliance and regulatory strategy - a crucial advantage in a heavily scrutinized sector.

With its new funding, ZOOT plans to enhance its gaming portfolio with more sweepstakes titles, expand into new US states, and improve social engagement features. Future developments will include a robust rewards system, expanded payment options to support additional stablecoins, and strategic partnerships with content creators and influencers to amplify growth.

A New Era for Social Gaming

The global gaming landscape is changing rapidly. Players now demand immediacy, transparency, and a sense of community ownership - qualities that ZOOT embodies at its core. By combining a legally sound sweepstakes framework with blockchain-powered payments and social features, ZOOT offers a glimpse into the future of online entertainment.

For investors and founders alike, ZOOT’s story is a powerful reminder that rethinking the foundational rules of a market - rather than just its features - can create the kind of defensible, scalable products that set new industry standards.

As ZOOT prepares to roll out new games and expand globally, the company isn’t just adding another entry to the gaming sector. It’s rewriting what it means to play, win, and connect in a digital world.