Outside Source
- UK Gambling Commission charges Sorare for providing unlicensed gambling services.
- The United Kingdom’s Gambling Commission has been investigating Sorare for three years.
- Sorare denies wrongdoing, asserting it is not a gambling platform under UK law.
The United Kingdom’s Gambling Commission has taken legal action against Sorare, a blockchain-based fantasy sports platform, accusing the company of operating unlicensed gambling facilities.
Sorare, headquartered in France, offers non-fungible tokens (NFTs) tied to fantasy sports teams and athlete collectibles. Following the Gambling Commission’s move, the platform is set to appear in a UK court on October 4.
The Gambling Commission opened its investigation into Sorare in October 2021 but has largely kept its findings under wraps.
As of July 2023, the Commission had not made its conclusions public, instead stating that it would engage in further dialogue with operators and third parties before reaching a final verdict.
The upcoming court battle represents the culmination of nearly three years of regulatory scrutiny.
What is Sorare?
Sorare, founded in 2018, allows users to collect and trade digital cards in the form of NFTs. These cards represent real-life athletes, and users can create fantasy teams to compete based on the players’ real-world performances.
The platform covers multiple sports, including football, basketball, and baseball. Player performance in actual games directly impacts the fantasy teams, making the platform interactive for users.
Sorare’s NFT cards can be traded or sold, sometimes reaching values in the hundreds of thousands of dollars.
Sorare denies any wrongdoing
In response to the charges, Sorare has firmly denied any wrongdoing.
In a public statement issued by the company’s spokesperson, Sorare has argued that it is not a gambling platform under UK law and criticized the Gambling Commission for misinterpreting its business model.
As quoted by The Guardian, the spokesperson said, “We firmly deny any claims that Sorare is a gambling product under UK laws. The Commission has misunderstood our business and wrongly determined that gambling laws apply to Sorar.”
Sorare has faced legal challenges before, including a similar case in France. In that instance, the company reached a settlement before the matter could proceed to court.
Initially, Sorare only accepted cryptocurrency payments for transactions on its platform. However, in 2023, the company expanded its payment options to include traditional fiat currencies in an effort to increase user adoption.
The outcome of the UK case could have significant implications for Sorare and the broader NFT gaming industry, which continues to blur the lines between collectibles, gaming, and gambling.
This article first appeared at CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison
