British Authorities Investigating If NFT Company Needs Gambling License

  • Sorare, an NFT fantasy soccer company, is under investigation by the U.K. Gambling Commission.
  • The Commission will look to determine whether or not Sorare’s platform constitutes gambling.
  • Sorare claims that their services do not constitute gambling in any way.

LONDON - Are NFT’s gambling? Can their use cases make them such that they need to be regulated by gambling authorities?

The United Kingdom’s Gambling Commission has opened an inquiry into one such sports related NFT company called Sorare.

Sorare, an NFT technology company based out of the United Kingdom, offers an NFT version of fantasy soccer.

Think of it as a bit like normal fantasy soccer, but with NFTs. Sorare’s players buy, sell and trade NFT versions of famous soccer players and attempt to build the best team.

Gambling Commission Inquiry

The Gambling Commission has been remarkably short with words when discussing the case against Sorare - or whether there even is one.

The Commission issued one short statement, in the form of a consumer information notice, which pointed out that Sorare was not licensed by the Commission in any way, and that customers should take this into account.

The commission statement also noted that there was going to be an inquiry into whether or not Sorare required such an online gambling license in order to operate.

Per the statement:

“The Gambling Commission is currently carrying out enquiries into the company to establish whether requires an operating licence or whether the services it provides do not constitute gambling.”

Sorare’s Response

Sorare has been clear in stating that the company does not believe that their NFT market constitutes gambling.

Their official statement on the matter includes the following:

“We are very confident Sorare does not offer any forms of 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.“

In the statement, Sorare places the blame for the inquiry on the natural questioning that people do when a new technology arises.

“When a product with a nascent technology becomes successful, such as Sorare’s digital collectable cards and game, it is normal and expected to receive regulatory questions,” the statement reads.

The Commission’s statement specifically noted that no further communications with the public will be made on the matter until the inquiry is finished, so for now, sports bettors and NFT fans have to wait with bated breath for the resolution of this case.