Sorare Faces Charges for Operating Unlicensed Gambling in UK

• The UK Gambling Commission has filed charges against Sorare for providing unlicensed gambling services.
• Sorare has been under investigation by the UK’s Gambling Commission for the past three years.
• The company asserts that it operates outside of gambling regulations as defined by UK law.

The UK’s Gambling Commission has initiated proceedings against Sorare, a blockchain-based fantasy sports platform, claiming that the company has been operating unlicensed gambling operations.

Based in France, Sorare provides non-fungible tokens (NFTs) that relate to fantasy sports teams and collectible athletes. Following this legal action, the platform is scheduled to appear in a UK court on October 4.

The investigation into Sorare commenced in October 2021, but details regarding its findings have largely been kept confidential.

As of July 2023, the Commission had not disclosed its conclusions, indicating a desire to further engage with operators and third parties prior to arriving at a final resolution.

This upcoming court case marks the conclusion of nearly three years of regulatory examination.

What is Sorare?

Founded in 2018, Sorare allows users to collect and trade digital cards that are structured as NFTs. These cards depict real-life athletes, enabling users to assemble fantasy teams to compete based on the athletes’ real-world performance.

The platform spans several sports, including football, basketball, and baseball. Actual player performance in games directly affects the fantasy teams, offering an interactive experience for users.

Sorare’s NFT cards can be traded or sold, often reaching prices in the hundreds of thousands of dollars.

Sorare denies any wrongdoing

In light of the accusations, Sorare has categorically denied any misconduct.

According to a public statement from the company’s representative, Sorare contends that it does not qualify as a gambling platform under UK law and criticized the Gambling Commission for misinterpreting its business operations.

As reported by The Guardian, the spokesperson stated, “We strongly refute any claims that Sorare functions as a gambling product as per UK regulations. The Commission has misinterpreted our business model and incorrectly concluded that gambling laws apply to Sorare.”

Sorare has faced legal challenges in the past, including a similar case in France, which was settled before reaching court.

Initially, Sorare exclusively accepted cryptocurrency for transactions but expanded to include traditional fiat payment options in 2023 to attract more users.

The outcome of this UK legal case could significantly impact Sorare and the wider NFT gaming sector as boundaries between collectibles, gaming, and gambling continue to evolve.