A prominent fantasy sports company, Sorare, is facing charges in the U.K. for allegedly providing unlicensed gaming facilities, marking the regulator's inaugural move against a blockchain-based entity.
The Paris-based firm offers fantasy soccer, basketball, and baseball games, enabling users to purchase and trade unique digital collectibles, known as non-fungible tokens (NFTs), which serve as one-of-a-kind digital assets. Having secured partnerships with esteemed sporting associations, including the English Premier League and Germany's Bundesliga, Sorare's business model has drawn scrutiny.
According to the Gambling Commission, 'Sorare is accused of providing gaming facilities without the requisite operating licence,' prompting a court appearance on October 4. This development follows an extensive three-year investigation, initiated in 2021, when the commission first explored whether Sorare required a gaming licence. As the first instance of regulatory action against a blockchain-based platform, the outcome may establish a precedent for future interactions between regulators and Web3 companies. Furthermore, this move reflects the U.K.
authorities' increasing efforts to curb suspected illicit activities within the cryptocurrency space, as evidenced by recent crackdowns on unregulated crypto ATMs. In response, a Sorare spokesperson stated, 'We categorically deny that Sorare constitutes a gaming product under U.K. law. The Commission has misinterpreted our business model and wrongly applied gaming laws to our operations.'