The UK Gambling Commission has initiated legal proceedings against Sorare, a blockchain-based fantasy sports platform, alleging that it operates unlicensed gambling facilities.
Sorare, which is based in France, allows users to collect and trade non-fungible tokens (NFTs) linked to real-life athletes and fantasy sports teams.
The platform has been under investigation since October 2021, but the Commission has kept its findings largely confidential until now. A court appearance is scheduled for October 4, marking a significant moment after nearly three years of scrutiny.
Founded in 2018, Sorare enables users to create fantasy teams that compete based on the actual performance of athletes across various sports, including football, basketball, and baseball.
The NFT cards representing these athletes can be traded or sold, sometimes fetching high prices. Despite the allegations, Sorare maintains that it does not operate as a gambling platform under UK law, arguing that the Gambling Commission has misinterpreted its business model.
The company has faced legal challenges previously, including a case in France, which was settled before reaching court. In a bid to broaden its user base, Sorare began accepting traditional fiat currency payments in 2023, expanding beyond its initial crypto-only model.
The outcome of the UK case could have far-reaching effects not only for Sorare but also for the evolving NFT gaming landscape, where the distinctions between collectibles, gaming, and gambling are increasingly blurred.
