Sorare, the blockchain-powered fantasy sports platform, is heading to UK court. Here’s why.
The UK Gambling Commission is taking aim at Sorare, a popular blockchain-based fantasy sports platform, accusing it of offering unlicensed gambling services.
This rare legal move, which has been three years in the making, will see the France-based company in court on October 4.
Since its founding in 2018, Sorare has revolutionized fantasy sports by integrating collectible NFTs. Players create fantasy teams using digital athlete cards, with real-world player performance impacting their fantasy league standings.
Sorare’s NFTs have become highly sought-after, with some trading for hundreds of thousands of dollars.
However, the UK watchdog isn’t impressed. In a recent statement, the Gambling Commission accused Sorare of operating illegally in Britain by providing unlicensed gambling services. This is a significant step for the agency, which has only pursued one other such case since its inception in 2005.
Sorare has swiftly denied the charges, stating:
We are aware of the claims made by the Gambling Commission and have instructed our UK counsel to challenge them. 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 Sorare.”
The company’s troubles aren’t confined to the UK. Sorare has faced similar regulatory issues in France, though it managed to settle those matters before they escalated to court.
Also Read: The Fight To Define NFTs: Consumer Goods Or Securities?
Meanwhile, an investigation opened by the UK’s Gambling Commission in October 2021 remained under wraps until this year, giving the agency plenty of time to assess Sorare’s operations.
As the NFT sports industry booms, Sorare has adapted, now accepting fiat currency alongside crypto to broaden its reach. The outcome of this legal battle could have far-reaching implications for both the fantasy sports market and the growing world of NFTs.
