Sorare, a fantasy sports company, has been accused of providing unauthorized gambling services in the United Kingdom.
Sorare, a fantasy sports company, has been accused of providing unauthorized gambling services in the United Kingdom. This is the first action the Gambling Commission has ever taken against a blockchain-based virtual casino platform.
The company, headquartered in Saint-Mandé, France, offers fantasy games based on soccer, basketball, and baseball events. Participants can purchase and trade collectible cards as NFTs.
Sorare’s NFT Platform Considered Illegal Gambling in the United Kingdom
It has recently partnered with most significant sports competitions, including the English Premier League and Germany’s Bundesliga.
NFTs are digital tokens that are unique and signify assets within the platform. However, the Gambling Commission’s initial regulatory action against a blockchain entity may serve as the most significant precedent-setting for future Web3 regulation.
Sorare is accused of violating sections 33(1), (4), and 36(3), (3A) of the Wagering Act 2005 by providing wagering facilities without an operating license, according to the official announcement.
Will NFTs Be Considered Gambling in the United Kingdom?
Consequently, the UK Gambling Commission has ordered the company to appear at Birmingham Magistrates’ Court on October 4 following a three-year investigation.
The investigation was initiated in 2021 to determine whether the fantasy sports firm was required to obtain a wagering license to operate.
This will be the first time that the commission has taken action against a blockchain operator, which has the potential to influence how regulators approach Web3 and NFT-related companies.
The accusations are the outcome of a nearly three-year investigation by the regulator, which commenced in 2021 to determine whether the company required a gambling license.
This is the first case of its kind filed by the Gambling Commission against a blockchain-based platform, and it has the potential to establish a legal precedent for how regulators may approach Web3 firms in the future.
This development also indicates that UK regulators are increasingly enforcing their policies against suspected illicit activities in the crypto sector, which follows similar recent actions against unregulated crypto ATMs.
Sorare has unequivocally denied that the platform is a gambling product under the laws of England and Wales. The company has also claimed that the regulator has misunderstood the platform’s business model and applied incorrect gambling laws.
