Blockchain-based fantasy football platform Sorare has been quick to respond to the UK Gambling Commission’s suspicions concerning the former party’s lack of license. Sorare has defended its business, claiming it doesn’t fall under the gambling regulator’s remit.
UKGC’s Investigation on Sorare
The whole issue stems from the UKGC’s decision to investigate Sorare. According to the regulator’s own words in a notice to the public, it had learned that the fantasy football outlet doesn’t have a license to operate gambling in Britain. The timing of this statement is rather bizarre because Sorare is massively popular and it has been available in the UK since around 2019, GamblingNews understands.
As a result, the UKGC launched an investigation on Sorare’s business to determine whether it actually needs one. In the meantime, UK’s gambling regulator advised the public to be vigilant when using Sorare’s services.
Fans were quite unhappy with UKGC’s resolve to act against Sorare as they still don’t trust the regulator because of the Football Index situation. The Football Index was Britain’s licensed sports betting platform. In its eventual collapse customers lost roughly $109 million (£80 million).
The UKGC refused to comment until the investigation is over and a conclusion is drawn. Sorare was quick to respond to the investigation. Although the fantasy football provider defended its position, it affirmed the UKGC’s right to ask questions and said it will cooperate with the authority.
Sorare’s Business Doesn’t Constitute Gambling
Sorare’s response reminds that its blockchain offerings do not constitute gambling as they are devoid of the randomization element. The platform pointed out that since everything is blockchain-based, this can be easily confirmed. The cards aren’t generated by chance but are actually pre-determined by Sorare. Therefore, they cannot be really considered as loot boxes or a game of chance.
In its statement, Sorare explained that it has consulted legal experts in the fields at its very inception back in 2018 and is sure of its stance. This has been reconfirmed during Sorare’s several funding rounds.
However, Sorare added that it realizes sometimes regulatory questions can arise. The company calmly defended its position and acknowledged that it isn’t out of the ordinary for the UKGC to have suspicions. Sorare explained:
“At Sorare, fans can celebrate their passion for football in a unique way. By collecting rare NFT cards and playing our global fantasy football game, our community has unlocked a new way to connect with the players and clubs that they love. 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
Sorare explained that it is always open for a dialogue with authorities and it will gladly explain everything about its fantasy football game. “We believe this is the responsible way to grow our game and community globally,” Sorare added.