The First Blockchain-based Virtual Casino Platform in the UK Accused of Unlicensed Gambling
Sorare, a fantasy sports company, is under scrutiny for allegedly offering unauthorized gambling services in the UK. This marks the first time the UK Gambling Commission has taken action against a blockchain-based virtual casino platform.
Based in Saint-Mandé, France, Sorare offers fantasy sports games centered around soccer, basketball, and baseball events. Participants can engage in buying and trading collectible cards as NFTs (non-fungible tokens).
The company has established partnerships with major sports leagues, including the English Premier League and Germany’s Bundesliga. NFTs serve as unique digital tokens representing assets within the Sorare platform.
The UK Gambling Commission’s official announcement states that Sorare is facing charges for providing gambling facilities without a proper operating license, contravening sections of the Gambling Act 2005.
A Day in Court: Legal Battle Over NFTs and Gambling in the UK
Following a three-year investigation by the UK Gambling Commission, Sorare has been summoned to appear at Birmingham Magistrates’ Court on October 4. This investigation, initiated in 2021, aimed to determine whether the fantasy sports company required a gambling license to operate.
The charges stem from the regulator’s investigation into Sorare’s business model and potential need for a gambling license. This case represents a significant regulatory action by the Gambling Commission against a blockchain entity, setting a legal precedent for how regulators may approach Web3 and NFT-related companies in the future.
This development highlights the increasing enforcement measures by UK regulators against suspected illicit activities involving the crypto sector, following similar actions taken against unregulated crypto ATMs.
Sorare has denied that its platform constitutes a gambling product under English and Welsh laws, asserting that the regulator has misinterpreted its business model and applied inappropriate gambling laws.
In conclusion, the outcome of Sorare’s legal battle will likely have far-reaching implications for the regulation of blockchain-based platforms and NFTs in the UK. Stay tuned for further updates on this groundbreaking case.