The UK Gambling Commission has opened an investigation into Sorare, a popular NFT fantasy football game that raised $ 680 million in a fundraising round last month.
“The Gambling Commission is currently investigating the company to determine whether Sorare.com requires a business license or whether the services it provides do not constitute gambling.”
However, Sorare – who closed a $ 680 million funding round for his NFT trading card platform in September – has denied being involved in anything close to “regulated gambling.”
“We are very confident that Sorare does not offer any form of regulated gambling. This has been confirmed by expert legal opinions at every stage since the inception of the company, including a number of fundraisers, ”he said on the company’s blog.
According to a Commission “consumer information notice” released earlier this week, Sorare is currently not licensed and consumers should be careful when interacting with the site:
Sorare added: “We will always engage and have an open dialogue with the authorities who contact us to learn more about our game.
According to Sorare’s website, “Sorare is a blockchain-based Fantasy Football game, where you can earn rewards for choosing the best lineups.. ”
Developed in 2018 by Nicolas Julia and Adrien Montfort, players buy, sell, trade and manage a virtual team with digital player cards. The Ethereum-based platform has partnered with 100 football clubs, including well-known names like Real Madrid and Liverpool.
In an opinion piece on Gambling Insider, Richard Williams, a gaming and regulatory partner at Keystone Law, argued that Sorare could fall under the category of pool betting or gaming regulated activities under Gambling. Act 2005:
“The Commission will undoubtedly conduct a thorough review of the product, but there is certainly a legal question mark about this. The product may fall within the regulated activity of betting (pool betting) or gaming under the Gambling Act 2005, depending on how it is structured.