Sorare’s fantasy games allow players to buy and trade collectible cards as NFTs based on sports events like soccer and basketball.
Sorare, a fantasy sports company has faced accusations of providing gambling services in the United Kingdom. This is the very first action that the Gambling Commission has ever taken against a virtual gambling site that is based on blockchain technology.
The business, which has its headquarters in France, particularly in Saint-Mandé, offers fantasy games that are based on sporting events such as baseball, basketball, and soccer. Players have the opportunity to purchase and exchange collector cards as non-fungible tokens (NFTs).
Sorare’s NFT Platform Deemed Illegal Gambling in UK
Recently, it has formed partnerships with the majority of the major sports leagues, including those from the English Premier League and the Bundesliga in Germany.
However, the fact that this verdict is the first regulatory action taken by the Gambling Commission against a blockchain firm is likely the most significant precedent-setting factor for future Web3 regulation.
The official release charged Sorare with providing gambling facilities without holding an operating license, a violation of sections 33(1), (4), and 36(3), (3A) of the Gambling Act 2005.
A Day in Court: Will NFTs Be Deemed Gambling in the UK?
The United Kingdom Gambling Commission conducted a three-year inquiry, prompting the corporation to appear before the Birmingham Magistrates’ Court on October 4. The United Kingdom Gambling Commission launched the inquiry in 2021 to determine whether the fantasy sports company needed a gambling license to conduct business.
This will be the first time that the commission has ever taken action against a blockchain operator, which has the potential to be a determining factor in how regulators treat enterprises associated with Web3 and net-based transactions (NFT).
The regulator began its investigation in 2021 to determine whether or not the company required a gaming license. The inquiry lasted for almost three years, and the charges are the outcome of that probe.
This is the first case of its kind that the Gambling Commission has ever brought against a blockchain-based platform, and as a result, it has the potential to establish a legal precedent for how regulators can handle Web3 companies in the future.
This new development also shows an increase in enforcement by UK regulators against alleged illegal operations involving the cryptocurrency sector. This comes after similar recent moves against unregulated cryptocurrency ATMs.
Sorare has clearly rejected the claim that the platform represents a gambling product for the purposes of England and Wales’ laws. However, the company claims that the regulator misinterpreted the platform’s business model and applied incorrect gambling regulations to it.
