Fantasy Sports Company Sorare Charged With Providing Unlicensed Gambling Facilities in U.K.

As an analyst with years of experience in both traditional finance and the burgeoning world of Web3, I find myself intrigued by the recent charges against Sorare. Having followed the development of blockchain technology and its applications closely, it’s fascinating to see this first-of-its-kind case involving a blockchain platform.

In a groundbreaking move, the Gambling Commission took action against Sorare, a fantasy sports firm, for allegedly operating unauthorized gambling services within the United Kingdom, marking the Commission’s first case involving a blockchain-based platform.

Located in Saint-Mande, France, this company runs interactive sports games focusing on soccer, basketball, and baseball, where players can trade collectible cards using Non-Fungible Tokens (NFTs). They’ve partnered with leagues like the English Premier League and Germany’s Bundesliga, as well as other national sporting organizations. Essentially, NFTs are distinctive digital tokens used to symbolize assets.

According to their statement, Sorare has been accused of offering gambling services without possessing a valid license. The company is expected to attend Birmingham Magistrates’ Court on October 4.

The charges follow an almost three-year inquiry by the regulator. In 2021 the commission said it was looking into whether Sorare needed a gambling license. The case is the first time it has clamped down on the use of a blockchain-based platform and the outcome could set a precedent for how regulators handle Web3 firms in the future.

This indicates that UK authorities may be intensifying their efforts to crack down on suspected illegal activities in the cryptocurrency sector, as evidenced by their recent raids on unlicensed cryptocurrency Automated Teller Machines (ATMs).

A representative from Sorare has stated, “We categorically refute allegations labeling Sorare as a gambling product according to U.K. regulations. Our operations have been misconstrued by the authorities, leading them to incorrectly assume that our business falls under gambling laws.