The non-fungible token (NFT)-based football platform Sorare.com has sent a statement to the Gambling Insider to respond to the recent notice of the UK Gambling Commission (UKGC). In its statement, the operator revealed that, for the time being, it does not provide British consumers with any forms of regulated gambling services.
As Casino Guardian reported, the major gambling regulatory body of the UK warned local customers that Sorare offers its services without an operating licence issued by the local competent authorities. In response, the NFT football platform has insisted that it currently does not offer any forms of regulated gambling in the country.
The company’s platform allows football fans to celebrate their passion for the game. The Gambling Insider cited Sorare’s statement saying that the community that the operator had created had unlocked a new way to connect the game lovers with professional football clubs and footballers, by collecting rare non-fungible token cards and playing the global fantasy football game of the company. Sorare believes that the occurrence of regulatory questions are something normal when a product featuring new technology becomes successful.
As the Gambling Insider reported, the company believes it does not offer any forms of regulated gambling. Furthermore, Sorare has explained that its claims had been confirmed by the opinions of some legal experts at every stage since the company was established. The company also pledged to remain open for a dialogue with local authorities whenever they address the operator to learn more about its game.
UKGC Currently Holding an Investigation into Sorare NFT Platform
At the time when the UK Gambling Commission (UKGC) issued the notice, the regulator shared that it is carrying out an investigation into the NFT daily fantasy football company in order to find out whether the Sorare.com platform requires an operating licence to offer its services in the country. The British gambling watchdog wants to check whether the services offered by Sorare are not categorised as gambling.
Although the UKGC said it would not make more comments on the situation until the enquiries are brought to an end, the regulator’s concern with the situation is understandable, especially after the collapse of the popular football trading platform Football Index, which went into administration earlier this year, causing massive financial losses to its consumers.
A few days ago, the UK gambling watchdog, which is currently the one responsible for monitoring and regulating the local gambling sector and the one issuing gambling operating licences in the country, advised British customers to take into account the consumer information notice about the operator and make a decision whether they are willing to interact with a fantasy football platform that could be potentially operating without a licence. The fact that the company does not hold a licence issued by the UKGC means that it is operating outside the regulations that all licensed gambling companies need to be in line with, including rules ensuring customer protection.
Sorare has taken advantage of the flourishing NFT space and has managed to turn into one of the fastest-growing startups in the sector, providing its customers with a platform to trade Ethereum-based non-fungible token player cards. Following the entrance of the company in the UK at the end of September 2020, the country has ranked first in terms of total time spent on Sorare’s platform per user, and fifth in terms of the operator’s overall number of users.
- Author
Olivia Cole
