The UK Gambling Commission accused Solare of providing an unlicensed gambling service. The UK Gambling Commission has been investigating Sorare for three years. Mr Solare denied any wrongdoing and insisted it was not a gambling platform under UK law.
The UK Gambling Commission has taken legal action against blockchain-based fantasy sports platform Sorare, accusing it of operating an unlicensed gambling facility.
Sorare, headquartered in France, offers non-fungible tokens (NFTs) tied to collectibles from fantasy sports teams and athletes. The platform is scheduled to appear in a UK court on October 4 following the Gambling Commission's action.
The Gambling Commission launched an investigation into Sorare in October 2021, but its findings have been largely kept secret.
As of July 2023, the Commission has not published its conclusions, instead stating that it will engage in further dialogue with operators and third parties before reaching a final verdict.
The upcoming legal battle will be the culmination of nearly three years of regulatory scrutiny.
What is Sorare?
Founded in 2018, Sorare allows users to collect and trade digital cards in the form of NFTs. These cards represent real-life athletes and allow users to create fantasy teams to compete based on the players' real-world performance.
The platform covers multiple sports such as soccer, basketball, and baseball. Player performance in real games directly impacts fantasy teams, making the platform interactive for users.
Sorare's NFT cards can be traded or sold, reaching values in the hundreds of thousands of dollars in some cases.
Mr. Solare denies wrongdoing
In response to the accusations, Mr. Solare categorically denied any wrongdoing.
In a public statement released by a company spokesperson, Mr Solare insisted the company was not a gambling platform under UK law and criticized the Gambling Commission for misunderstanding its business model.
As quoted by the Guardian, a spokesperson said: “We categorically deny any claim that Solare is a gambling product under UK law. The Commission has misunderstood our business and believes that gambling law does not apply to Solare. I mistakenly judged that it would.”
Solare has faced legal challenges before, including a similar case in France. In this case, the company reached a settlement before the matter went to court.
Initially, Sorare only accepted cryptocurrency payments for transactions on its platform. However, in 2023, the company expanded its payment options to include traditional fiat currencies in an effort to increase user adoption.
The outcome of the UK case could have significant implications for Sorare and the wider NFT gaming industry, which continues to blur the lines between collectibles, gaming and gambling.
