The U.K. Gambling Commission has launched an investigation into Sorare, the French fantasy soccer non-fungible token (NFT) platform.
Fast facts
- The gambling watchdog said that any activity on Sorare by British citizens falls outside of gambling regulations in Great Britain, since Sorare is not registered with the commission. Therefore, the notice advised Sorare users to take this into consideration when deciding whether or not to use the platform.
- The notice also said the commission is currently conducting “enquiries into the company” to determine whether Sorare needs an operating license or if its services do not constitute gambling.
- In its official response to the notice, Sorare said it is confident that none of its services fall under 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,” Sorare added. The company went on to say that it will engage in an “open dialogue” with any regulatory authorities that reach out to Sorare.
- Based in Paris, Sorare raised US$680 million led by Japanese investment giant SoftBank at a valuation of US$4.3 billion last month. While Sorare may not offer traditional forms of gambling, its NFTs are speculative in nature since their values can fluctuate widely based on player performance — it is this feature that potentially is raising eyebrows with the U.K. gambling commission.