The Gambling Commission in the United Kingdom has launched an inquiry into fantasy NFT soccer game Sorare, to determine if the platform is required to have a gambling license.
“The Gambling Commission is currently carrying out enquiries into the company to establish whether Sorare.com requires an operating license or whether the services it provides do not constitute gambling.”
Sorare, which in September closed a $680 million investment round for its NFT trading card network, claimed it was involved in anything resembling “regulated gambling.”
“We are certain that Sorare does not provide any regulated gambling.” Expert legal views have affirmed this at every point since the company’s founding, including during a number of fundraising rounds,” the corporate blog stated.
Sorare is not yet licensed, according to a “consumer information alert” issued by the Commission earlier this week, and customers should exercise caution while interacting with the site:
“We will always interact and have an open dialogue with authorities who contact us to learn more about our game,” Sorare stated.
“Sorare is a Fantasy Football Game based on blockchain, where you can receive incentives for picking the best lineups,” according to Sorare’s website.
Players buy, sell, trade, and manage a virtual squad with digital player cards, which were created by Nicolas Julia and Adrien Montfort in 2018. 100 soccer clubs have collaborated with the Ethereum-based network, including renowned names like Real Madrid and Liverpool.
Richard Williams, a gambling and regulatory lawyer at Keystone Law argues in an opinion post on Gambling Insider that Sorare might be classified as pool betting or gaming controlled activity under the Gambling Act 2005:
“The Commission will no doubt carry out a thorough review of the product, but there is certainly a legal question mark over this. It is possible that the product could fall into the betting (pool betting) or gaming regulated activity under the Gambling Act 2005, depending on how it is structured.”