Sorare Gambling Case: UK’s First Blockchain Regulatory Action

First Regulatory Action Against Blockchain Platform in UK: Sorare Case

Fantasy sports platform Sorare is facing charges from the UK Gambling Commission for allegedly offering unlicensed gambling services.

Sorare Accused of Unlicensed Gambling Services

Sorare, a popular fantasy sports platform that allows users to buy and trade NFTs based on soccer, basketball, and baseball, has been accused of offering unauthorized gambling services in the UK. The UK Gambling Commission, after a three-year investigation, has charged the French-based company for operating without the required gambling license.

NFTs and Sports Partnerships Under Scrutiny

Sorare’s platform enables participants to collect and trade digital sports cards as NFTs. The company has secured partnerships with major sports leagues like the English Premier League and Germany’s Bundesliga, which has helped it gain popularity globally. 

However, the UK Gambling Commission has classified these NFT-based activities as gambling, potentially setting a precedent for how blockchain and Web3 companies will be regulated in the future.

UK Gambling Commission’s First Action Against a Blockchain Platform

This marks the first time the UK Gambling Commission has taken legal action against a blockchain-based company. The regulator’s investigation, which began in 2021, was aimed at determining whether Sorare’s operations required a gambling license. The commission believes that Sorare's platform constitutes gambling under the UK Gambling Act of 2005.

Legal Precedent for Web3 Regulation

Sorare is expected to appear in court on October 4 at Birmingham Magistrates' Court, where this case could have far-reaching implications for other Web3 and NFT platforms. The outcome could influence how future regulations around blockchain and digital assets are structured in the UK and beyond.

Sorare Denies Gambling Allegations

Sorare has denied the accusations, arguing that its platform does not fall under the definition of gambling under English and Welsh law. The company claims that the Gambling Commission has misunderstood its business model and wrongly applied gambling laws to it. As the case moves forward, the decision could have lasting effects on how blockchain companies are regulated in the UK.

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