The agency in Britain responsible for the licensing of gambling activities announced it is looking at the status of football-theme website, Sorare.com.
The site is a fantasy football platform that deals in NFTs – non-fungible tokens – through cards of popular players, powered by the Ethereum Blockchain.
So far, more than 120 football clubs from around the world have launched player cards through the growingly popular website. Although the platform doesn’t have functionalities clearly linked to gambling, the price of a player’s NFT can fluctuate depending on the team’s performance, allowing users to speculate in their value based on match performance.
According to the Gambling Commission, Sorare doesn’t hold a licence issued by the agency, meaning that ‘any activity completed on the site by consumers in Great Britain is outside of the gambling regulations that a licensed operator should comply with’. In an official note, the agency stated that they are currently looking into whether Sorare.com will need an operating licence or whether the services it provides are not deemed to constitute gambling.
"In a statement issued to the crypto specialist site The Block, Sorare’s management said it is not surprised to have regulatory questions asked given the nascent nature of the technology, adding that they are ‘very confident that it does not offer any forms of regulated gambling’."