UK Regulator Flags NFT Sorare as Gambling Concern!
Sorare, a fast growing European Ethereum-based fantasy football and digital collecting game, has been investigated by the UK Gambling Commission. NFT
The agency has demonstrate a statement on Friday (October 8th) that:
“The Gambling Commission is currently examining whether Sorare.com needs a license to operate or whether the services it offers represent games of chance.”
With Sorare, players can buy and sell officially licensed digital trading cards from players from over 100 teams around the world, including clubs like Juventus FC and Paris Saint-Germain FC. Each token is sold as a verifiable scarcity NFT that acts like a receipt for any type of rare digital item.
However, unlike the NFT project licensed by NBA Top Shot, Sorare also contains an element of fantasy sports. Sorare users can use their cards to assemble weekly squads and compete with other users and earn points based on the real world performance of their respective players. The best players in each cycle can win free tokens or even Ethereum crypto rewards.
The UK Gambling Commission notes that Sorare’s approach could be gambling in some form and it is deciding whether the company needs to apply for a license to continue operating in the country.
According to his statement, the committee does not want to comment any further until the investigation has been concluded. Meanwhile, Sorare does not believe that a gambling license is required to perform its service.
“When an early technology product becomes successful, like Sorare’s digital trading cards and games, that’s normal. We strongly believe that Sorare does not offer any form of regulated gambling, ”said Sorare emphasize after the charge.
“We have been advising legal experts in every phase since the company was founded, even during several financing rounds. We will always be committed and have an open dialogue with the authorities who contact us to find out more about our game. We believe that this is the responsible way to develop games and communities worldwide. ”
Sorare recently raised $ 680 million on a $ 4.3 billion valuation via a Series B funding round from well-known investors including social media influencer and NFT entrepreneur Gary Vaynerchuk and Alexis Ohanian – Reddit co-founder and founder by Seven Seven Six – collected.
In addition to last month’s funding, Sorare announced significant growth initiatives, including plans to open a US office, add women’s soccer teams, and expand its NFT-based brand to other locations.