The UK Gambling Commission (UKGC) is investigating Sorare, a fantasy NFT platform for potential illegal gambling, and will let the platform run if it obtains a license.
UKGC announced that it will investigate whether blockchain-based fantasy NFT football platform Sorare has been offering gambling without a license. Additionally, authorities will also check whether the services provided by Sorare qualify as gambling or not.
As a follow-up, the Gambling Commission stated in a notice warning that UK has no record of any license permitted to Sorare. The authorities also cautioned the customers that the platform did not have the Gambling License and thus did not safeguard its users against the contingencies which licensed firms can.
Sorare offers users to trade player cards to build a fantasy football team. Players can also add tournaments and compete for rewards that range from hundreds to thousands of pounds based on the player’s performances. Investors in the site include Pro-league footballers like Antoine Griezmann and Gerard Pique, plus former player Andre Schurrle.
Sorare’s take on the pointed fingers
The French platform has released an official statement denying the ‘gambling’ allegations.
“We are very confident Sorare does not offer any forms of regulated gambling. This has been confirmed by expert legal opinions at every stage since the company was founded, including during a number of fundraising rounds,” the NFT platform wrote in a blog post.
Moreover, Sorare also said in its praise that because their eco-system is rising, it was just about natural to have some regulatory queries. The firm further invited the regulatory to start an “open dialogue” to get every fact out in the open.
The company was also in the news sometime back. It raised $680 million in its series B round in September from SoftBank and a handful of others that the institutions around the world very much appreciated. All the while, its most significant partnership is with French sports giant L’Equipe.