Sorare, a blockchain-based fantasy sports company, is facing charges for allegedly providing unlicensed gambling facilities. This marks the first time a blockchain platform has been targeted by the Gambling Commission, setting a potential precedent for how Web3 companies will be regulated in the future.
The charges against Sorare highlight a growing concern around the intersection of blockchain technology and gambling laws. The company, headquartered in Saint-Mande, France, offers fantasy sports games for soccer, basketball, and baseball, where players can buy and sell collectible cards using non-fungible tokens (NFTs). These NFTs serve as unique digital assets representing player cards in the game.
With partnerships in place with prestigious leagues like the English Premier League and Germany’s Bundesliga, Sorare has attracted a global audience of sports fans and collectors. However, the Gambling Commission alleges that Sorare has been providing gambling services without the necessary operating license.
Following a lengthy investigation spanning nearly three years, the regulator determined that Sorare may be in violation of gambling laws in the UK. The upcoming court appearance on October 4 at Birmingham Magistrates’ Court will be a crucial moment for the company and the broader blockchain industry.
This enforcement action against Sorare reflects a broader trend of increased scrutiny and regulation in the cryptocurrency and blockchain space. The UK authorities have recently cracked down on unregulated crypto ATMs, signaling a more proactive approach to combating illicit activities in the industry.
In response to the charges, a spokesperson for Sorare has vehemently denied any allegations of operating a gambling product under UK laws. The company maintains that the Gambling Commission has misunderstood its business model and wrongly applied gambling regulations to its operations.
As the case unfolds, it will be closely watched by industry observers and stakeholders to assess the implications for other blockchain-based platforms. The outcome of this legal battle could shape the regulatory landscape for Web3 companies and set a precedent for how they are expected to comply with gambling laws.
For more information, check out: Fantasy-Sports Firm Sorare Looks to Increase Appeal by Diluting Crypto Association