In Brief:
- The UK Gambling Commission is investigating Sorare, an NFT Fantasy Football platform.
- Regulators are investigating whether the NFT game qualifies as gambling and, as such, requires proper licencing.
- Sorare has responded, claiming that its game is not gambling and that it has followed all regulations from start to finish.
Sorare, an Ethereum-based fantasy soccer game based on NFT digital trading cards, has been investigated by the United Kingdom’s Gambling Commission.
UK gambling commission believes Sorare’s approach may constitute gambling in some form. The Commission is looking into whether the game requires a gambling license, which it does not currently have, in order to continue operating in the country.
As Sorare.com is not licensed by the Gambling Commission, they advised consumers to consider this information before interacting with the site.
Sorare, unlike fellow licensed NFT project NBA Top Shot, includes a fantasy sports component. Users can use their cards to create weekly lineups and compete against other Sorare users, earning points based on the real-world performance of their players. Each cycle, the top players can win free cards or even Ethereum cryptocurrency rewards.
On Friday, the United Kingdom Gambling Commission issued a statement, writing, “The Gambling Commission is currently carrying out inquiries into the company to establish whether Sorare.com requires an operating license or whether the services it provides do not constitute gambling.”
The commission will not comment further until its investigation is completed, according to its statement. Sorare, for its part, believes that its service does not necessarily require a gambling license. “When a product with a nascent technology becomes successful, such as Sorare’s digital collectible cards and game, regulatory questions are normal and expected,” the company wrote in a statement released today. “We are confident that Sorare does not provide any form of regulated gambling.”
“This has been confirmed by expert legal opinions at every stage since the company’s inception, including during a number of fundraising rounds,” the statement continued.
Sorare recently raised $680 million in Series B funding at a valuation of $4.3 billion, led by social media influencer and NFT entrepreneur Gary Vaynerchuk and Reddit co-founder and Seven Seven Six founder Alexis Ohanian.
Sorare announced significant growth initiatives alongside its funding last month, including plans to open a US office, add women’s soccer teams, and expand its NFT-based brand into additional sports.
