The UK’s Gambling Commission has initiated legal proceedings against Sorare, a digital fantasy sports platform, accusing the company of providing unlicensed gambling services. The case, which could have far-reaching consequences for the future of fantasy sports and NFT-based platforms, is set to be heard in Birmingham magistrates court on October 4.
Sorare, which is valued at $4.3 billion and backed by high-profile investors like SoftBank, operates an online fantasy football game that allows users to build virtual teams using digital trading cards in the form of non-fungible tokens (NFTs). These digital assets represent real-life football players, and users compete for rewards ranging from cash prizes to exclusive memorabilia.
The UK Gambling Commission began investigating the Paris-based company in October 2021, assessing whether Sorare’s model falls under the jurisdiction of gambling laws. Nearly three years later, the commission has decided to charge Sorare with providing gambling services without the required licence, raising questions about the intersection of digital assets, fantasy sports, and gambling regulations.
In response to the charges, Sorare has firmly denied that its platform constitutes gambling under UK law. A company spokesperson said: “We are aware of the claims made by the Gambling Commission and have instructed our UK counsel to challenge them. We firmly deny any claims that Sorare is a gambling product under UK laws. The commission has misunderstood our business and wrongly determined that gambling laws apply to Sorare.”
Founded in 2018 by Nicolas Julia and Adrien Montfort, Sorare has quickly become a prominent player in the digital sports world, boasting partnerships with 317 football clubs globally, including every Premier League team.
The platform’s popularity is further bolstered by collaborations with international athletes such as Kylian Mbappé, Lionel Messi, and Serena Williams, as well as partnerships with major sports leagues in the United States, including the NBA and MLB.
In 2023, Sorare secured a four-year licensing agreement with the Premier League, granting the company the rights to sell digital sports cards for all 20 clubs. This deal is reportedly worth £30 million per year.
The commission, which regulates all gambling activity in Britain, has rarely used its prosecutorial powers since its establishment in 2005. A notable previous case involved the prosecution of an individual for fixing greyhound races by drugging the dogs. The decision to pursue legal action against Sorare marks one of the few instances where the regulator has taken such a step.
Sorare’s business model operates at the intersection of several cutting-edge sectors, including cryptocurrency, blockchain, and fantasy sports, areas that have historically been difficult to regulate. The platform’s digital cards, which are bought and sold using cryptocurrency, can appreciate in value based on the performance of the football players they represent, introducing a speculative element that may fall under gambling laws in certain jurisdictions.
As the court date approaches, the case will likely garner significant attention from both the sports and tech industries, as well as from regulators worldwide who are grappling with how to handle the growing popularity of digital collectibles and NFTs.
The Premier League, which lists Sorare as an official partner on its website, has not yet issued a public statement regarding the Gambling Commission’s charges.
Sorare’s website highlights its relationships with top-tier sports figures and leagues, with many athletes acting as ambassadors, investors, or advisers for the platform. The company currently serves over 3 million users across 180 countries and employs 160 people in offices located in Paris and New York.
The Gambling Commission has so far declined to provide further comment on the charges, stating only that Sorare has been charged with “providing unlicensed gambling facilities to consumers in Britain.”
Original article: https://www.yogonet.com/international/noticias/2024/09/27/80073-sorare-to-face-court-over-unlicensed-gambling-charges-in-the-uk
