- The UK Gambling Commission charged Sorare with providing unlicensed gambling services.
- The UK Gambling Commission has been investigating Sorare for three years.
- Sorare has denied wrongdoing, claiming it is not a gambling platform under UK law.
The UK Gambling Commission has taken legal action against blockchain-based fantasy sports platform ‘Sorare’ on charges of operating an unlicensed gambling facility.
France-based Sorare 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 launched an investigation into Sorare in October 2021 but has kept its findings largely private.
As of July 2023, the Commission has not made its conclusions public and has instead indicated that it will engage in further dialogue with operators and third parties before reaching a final ruling.
The upcoming legal battle marks the culmination of nearly three years of regulatory scrutiny.
What is Sorare?
Founded in 2018, Sorare allows users to collect and trade digital cards in the form of NFTs. These cards represent real athletes, and users can create fantasy teams to compete based on the players’ real-life performances.
The platform covers a variety of sports, including soccer, basketball, and baseball. Player performance in real games directly impacts fantasy teams, allowing the platform to interact with users.
Sorare’s NFT cards can be traded or sold, sometimes reaching values of hundreds of thousands of dollars.
Sorare denied any wrongdoing.
In response to the charges, Sorare categorically denied any wrongdoing.
In a public statement released by a company spokesperson, Sorare claimed it was not a gambling platform under UK law and accused the Gambling Commission of misinterpreting its business model.
“We categorically deny any claim that Sorare is a gambling product under UK law,” a spokesperson said, as quoted by The Guardian. “The Commission misunderstood our business and mistakenly believed that gambling laws applied to Sorar.”
Sorare has faced legal challenges before, including a similar case in France. In this case, the company reached a settlement before the matter went to court.
Initially, Sorare only accepted cryptocurrency payments for transactions within 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 wider NFT gaming industry, which continues to blur the lines between collectibles, gaming and gambling.