Sorare Accused of Offering Unauthorized Gambling Services in the UK: First Regulatory Action Against a Blockchain-Based Virtual Casino Platform

The fantasy sports firm Sorare has found itself in hot water as it faces accusations of 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.

Sorare, headquartered in France, allows participants to engage in fantasy games based on soccer, basketball, and baseball events by buying and trading collectible cards as NFTs. The company has recently partnered with major sports leagues, including the English Premier League and Germany’s Bundesliga, to offer NFTs as digital tokens representing assets within the platform.

The UK Gambling Commission has charged Sorare with providing facilities for gambling without holding an operating license, in violation of the Gambling Act 2005. The company is set to appear in court on October 4 following a three-year investigation by the commission. This case is significant as it sets a precedent for how regulators may approach Web3 and NFT-related companies in the future.

Sorare has denied that its platform constitutes a gambling product under the laws of England and Wales, stating that the regulator has misunderstood its business model. This development highlights the increasing enforcement by UK regulators against illicit activities in the crypto sector, following recent actions against unregulated crypto ATMs.

As the case unfolds, it will be interesting to see how the court’s decision may impact the future regulation of blockchain-based platforms and NFTs in the UK and beyond. Stay tuned for updates on this developing story.