NFT Football Manager Sorare Under Review by UKGC
Fast-growing European fantasy football and digital collectibles platform Sorare has come under the attention of the U.K. Gambling Commission.
The U.K. gambling watchdog is initiating an investigation into the popular game and warned in a consumer information notice dated October 8 that Sorare is operating “outside of the gambling regulations that a licensed operator should comply with.” The UKGC advised customers to keep this in mind when deciding to register on the platform and invest in the game as the game hold some sportsbetting characteristics.
Furthermore, the Gambling Commission is now reviewing if Sorare should need to acquire a gambling license, unless the game does not actually constitute gambling.
Although the non-fungible token (NFT), Ethereum powered game does not quite fit the traditional sportsbetting space and does not make use of odds, there is a speculative nature of the digital cards that can be traded. The value of the cards is being determined by actual player performance.
In response to the warning, Sorare issued an official statement and said it is “very confident [it] does not offer any forms of regulated gambling” and that it has consulted with legal experts since the beginning. The platform added:
“We will always engage and have an open dialogue with authorities who reach out to us to learn more about our game. We believe this is the responsible way to grow our game and community globally.”
In September, the NFT Football Manager game raised $680 million in a Series B funding round and received a $4.3 billion valuation.
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Author: Peter Siu