NFT Game Sorare Responds to U.K. Gambling Commission Investigation

As things continue to heat up in the NFT and NFT gaming scene, more eyes are turning to the platforms that support these assets and applications. On Oct. 11, fantasy soccer NFT game Sorare was given a warning that it would be placed under investigation through the U.K. Gambling Commission (UKGC). The investigation is about whether or not the business needs to operate under a license for gambling. Is Sorare gambling?

The investigation comes after Paris-based Sorare raised $680 million last month. After confirming that the commission would be evaluating Sorare, representatives spoke out to make it clear that they're “very confident” it doesn't offer any form of regulated gambling.

Sorare functions as an Ethereum-based blockchain game. The assets are represented by tokenized cards, which are the NFTs. More than 100 soccer clubs have licensing partnerships with Sorare, including teams Real Madrid, Liverpool, and Juventus F.C.

The game allows its users and players to buy and sell the NFTs on the marketplace. Users can then build their lineups with their tokens to enter fantasy contests and earn points based on their player’s real-life performances.

Prizes are distributed either in Ethereum (ETH) or in "rare" in-game player cards. However, the issue that the UKGC has with the fantasy soccer game is the uncertainty of how players select and purchase the tokenized cards. The UKGC speculates that it's more randomized than fixed.

Sorare maintains that although there's an exchange element to its platform, players can only participate in fantasy football games or leagues by purchasing "fixed-price player cards."

In response to the UKGC's impending investigation, Sorare has spoken out regarding the matter. The company has expressed its confidence that the platform doesn't offer any form of regulated gambling. Sorare has received support and confirmation from legal counsel since the inception of the platform including during several fundraising rounds.

A statement from the company said, “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.”

With full cooperation, Sorare is willing to discuss the game further with the UKGC. Sorare understands the attention it has garnered alongside its overall success.

"When a product with a nascent technology becomes successful, such as Sorare’s digital collectible cards and game, it is normal and expected for there to be regulatory questions,” Sorare states. The platform reaffirmed that there's "no randomized mechanism" to how players purchase digital cards. Customers are purchasing collectible items that can't be defined as "loot boxes"—randomized boxes with in-game contents or assets.

According to the platform, fantasy soccer games don't have a fixed-odds outcome. Player prizes are allocated by Sorare and not a betting pool placed by the users and players.

While the UKGC can't prevent players from registering or participating in games, it did put out a warning. The UKGC said, "Consumers are being advised to consider this information when deciding whether or not to interact with the site." Only time will tell what will come out of the investigation.