Date Published: September 27, 2024, 11:41h.
Last updated on: September 27, 2024, 11:44h.
The UK Gambling Commission (UKGC) has charged Sorare, a multibillion-dollar fantasy soccer platform, with illegal gambling, a rare move by the regulatory agency.
The charges mark the end of a three-year investigation into Sorare, a Paris-based company, promoted by the English Premier League and licensed to sell digital sports cards representing players from all 20 teams in the league, reportedly under a $40 million annual deal.
Sorare allows users to buy and sell soccer playing cards in the form of NFTs, inviting them to create fantasy teams that fluctuate in value based on real-world player performances.
High-scoring fantasy teams stand to receive cash rewards, game tickets, and signed jerseys.
NFT Frenzy
The UKGC initiated its investigation in 2021 during the height of the NFT craze, with Sorare attracting significant attention. The platform had recently secured a $680 million investment led by SoftBank.
Currently, Sorare is valued at $4.3 billion, with offices in New York and Paris, serving 3 million users across 180 markets
In 2021, Sorare stated to Casino.org that it had consulted with legal experts and firmly believes its services do not constitute gambling in the UK or any other jurisdiction where it operates.
Sorare ‘Not a Gambling Product’
In the UK, companies offering real-money fantasy sports and daily fantasy sports are required to obtain a pool-betting license from the UKGC. Sorare does not possess such a license and maintains its stance that it doesn’t require one.
“We have been made aware of the allegations by the Gambling Commission and have instructed our legal team to contest them. We categorically deny that Sorare is a gambling product under UK laws,” a company statement read.
The commission has misunderstood our business and wrongly determined that gambling laws apply to Sorare. We cannot comment further whilst legal proceedings are under way,” Sorare added.
An official post on the UKGC website declared Sorare to be “charged with providing facilities for gambling without holding an operating license,” in violation of the 2005 Gambling Act, without further elaboration.
An initial hearing is scheduled for October 4th at 10 a.m. at Birmingham Magistrates’ Court.
Sole Previous Prosecution
Prior to this case, the UKGC exercised its prosecutorial powers only once in 2015, convicting Wimbledon-based greyhound trainer Chris Mosdall of race fixing.
Mosdall had confessed to illicitly doping greyhounds to fix matches, earning him a sentence of four and a half months in prison.