Sorare to pay for unlicensed gambling services in the UK
The UK Gambling Commission charges Sorare with providing gambling services without a licence. The UK Gambling Commission has been investigating Soarer for almost three years. Sorare denies wrongdoing, saying it is not a gambling platform under UK law.
The UK Gambling Commission has taken legal action against Sorare, a blockchain-based virtual sports platform.
Headquartered in France, Sorare offers net worth funds (NFTs) tied to fantasy sports teams and athletes. The platform is set to appear in a UK court on October 4 following the Gambling Commission's action.
The Gambling Commission opened its investigation into Soror in October 2021 but has largely kept its findings under wraps.
In the year Starting in July 2023, the commission has not made its conclusions public, saying it will hold further discussions with operators and third parties before reaching a final decision.
The upcoming court battle represents the culmination of a nearly three-year regulatory investigation.
What is Sorare?
Founded in 2018, Sorare allows users to collect and trade digital cards in the form of NFTs. These cards represent real-life athletes, and users can create virtual teams to compete against based on the players' real-world performances.
The platform covers several sports including football, basketball, and baseball. A player's performance in real games directly affects virtual teams, making the platform interactive for users.
Sore NFT cards can be traded or sold, sometimes reaching hundreds of thousands of dollars in value.
Sorare denies any wrongdoing
In response to the allegations, Sorare strongly denied any wrongdoing.
In a public statement issued by a company spokesperson, Sorare argued that it was not a gambling platform under UK law and that the Gambling Commission had misinterpreted its business model.
According to The Guardian, a spokesperson said: “We strongly deny any claim that Sorere is a gambling product under UK law. The Commission misunderstood our work and wrongly decided that gambling laws applied to Soror.
Sorare has previously faced legal challenges, including a similar case in France. In that case, the company reached an agreement before the case went to court.
Initially, Sorare only accepted cryptocurrency payments for transactions on the platform. However, in 2023, the company expanded its payment options to include traditional fiat currencies in an effort to increase user adoption.
The outcome of the UK case could have significant implications for Soror and the wider NFT gaming industry, which continues to blur the lines between collection, gaming and gambling.
