The UK Gambling Commission is examining Sorare: The virtual collectible card game may be categorized as unlawful gambling.
The British Gambling Authority (BGA), the UK's gambling overseer, has levied charges against Sorare and initiated investigations. Sorare is a platform that sells digital collector's items showcasing real-life athletes on a digital marketplace. The BGA suspects that this could be classified as gambling due to the game's mechanics sharing similarities with licensed gambling providers.
BGA Acts After Thorough Probe
Sorare, a French company founded in 2018 by Nicolas Julia and Adrien Montfort, has garnered significant attention since becoming a sponsor of the 2022/23 English Premier League.
As far back as October 2021, the BGA began monitoring Sorare [article in English], as reported by the iGaming Business magazine. A hearing has now been scheduled for October 4 at a court in Birmingham.
Potential Illegality in Sorare
Sorare presents itself as a crypto-based fantasy sports game, where players can create a virtual team of athletes to compete for real money prizes, VIP tickets, or exclusive merchandise. Such games are extremely popular in Britain.
The BGA has not disclosed the precise allegations, but they may focus on the game's resemblance to fantasy games provided by FanDuel and DraftKings, both of which possess a British gambling license.
The Distinctiveness of Sorare's NFTs
Unlike FanDuel and DraftKings, each player on Sorare is available in limited quantities due to being stored as non-fungible tokens (NFTs) on a blockchain. Their rarity determines the number of times they may be available, ranging from up to 1,000 to a sole instance in the entire game.
While players on FanDuel or DraftKings can freely select their team members, there are limitations in Sorare. This occasionally leads to cards being traded at seemingly confounding prices.
Sorare Denies Allegations
A representative from Sorare told The Guardian newspaper that the BGA had "failed to grasp the business model of Sorare" [English article]. The company asserts that Sorare does not fall under gambling regulations.
However, the resemblance to FanDuel and DraftKings' licensed offerings appears to be evident. It will be intriguing to observe how Sorare presents its case in court. Perhaps the company will argue that Sorare is not a real-money game because all transactions take place in the cryptocurrency Ethereum.
In light of the British Gambling Authority's (BGA) investigation, some online gamblers in Germany might be wondering if they can still engage with Sorare's platform, given the similarities between its mechanics and authorized online casinos in Germany.
Despite the ongoing investigation, Sorare continues to gain popularity in Germany, attracting a significant number of German users who are keen on digital collectibles featuring real-life athletes.
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