Fantasy Soccer NFT Game Sorare Is Being Investigated by the U.K. Gambling Commission
The U.K. Gambling Commission is investigating fantasy soccer NFT platform Sorare to determine whether or not its crypto-backed fantasy game is a form of gambling.
The investigation comes after Paris-based Sorare raised $680 million last month. Sorare is not a licensed gambling operator and released a statement on Monday, saying it was “very confident” it does not offer any form of regulated gambling.
“The Gambling Commission is currently carrying out enquiries into the company to establish whether Sorare.com requires an operating licence or whether the services it provides do not constitute gambling. Consumers are being advised to consider this information when deciding whether or not to interact with the site,” the U.K. Gambling Commission said in a statement.
Sorare lets users buy and sell digital player cards that are tokenized on the Ethereum blockchain. Users can then build lineups with their tokens to enter fantasy contests and earn points based on their player’s real-life performances. Prizes are given in the form of ETH cryptocurrency or rare in-game player cards.
More than 100 soccer clubs have licensing partnerships with Sorare, including teams such as Real Madrid, Liverpool and Juventus F.C. The MLS Players Association also has a licensing deal with Sorare.
The U.K. government is planning to ban Premier League clubs from selling jersey ads to gambling firms, which would follow a ban Spain placed last year on betting sponsors appearing on La Liga club kits.
In the wake of Spain’s ban on gambling sponsors, brands in the cryptocurrency space are increasingly becoming shirt sponsors for La Liga clubs, such as Valencia’s jersey sponsorship with crypto-backed fan token platform Socios. A recent report from consulting firm GlobalData said La Liga clubs have received $36.8 million in crypto partnerships this season.
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