Sorare Faces Illegal Gambling Accusations in the UK
A court hearing is scheduled for October 4
September 27, 2024 11:10 AM
Reading time: 1 minute, 37 seconds
TL;DR The UK's Gambling Commission has accused Sorare of unlicensed gambling. Sorare disputes the allegation, claiming a misunderstanding of its business model.
The UK's Gambling Commission has thrust the fantasy football platform Sorare into the spotlight. The commission has accused Sorare of providing facilities for gambling without holding an operating license.
This allegation is in direct contradiction to the Gambling Act 2005. A court hearing is now scheduled for October 4.
Sorare operates a fantasy league football game utilizing the Ethereum blockchain. Players can trade football cards, which has drawn both admiration and scrutiny. Sorare disputes the Gambling Commission's claims.
The company argues that the law has been wrongly applied to its business model. In a statement to the Guardian, Sorare said, "The commission has misunderstood our business and wrongly determined that gambling laws apply to Sorare."
Sorare is taking the allegations seriously. The company has instructed its UK counsel to challenge the charges. "We firmly deny any claims that Sorare is a gambling product under UK laws," they added.
The outcome of this case could have significant implications for the burgeoning world of blockchain-based games.
The platform boasts sponsorships from top-tier football teams. Champions League teams like Atlético de Madrid, Sturm Graz, and AC Milan are among the 23 teams sponsored by crypto firms, including Sorare. These high-profile partnerships add another layer of complexity to the ongoing legal battle.
Interestingly, the Gambling Commission has rarely used its powers to bring such charges. The Guardian reports that the commission has received a similar charge only once.
That case involved a man who was drugging dogs to fix greyhound races, resulting in a successful prosecution and jail time. This case underscores the rarity and gravity of today's charge against Sorare.
"The commission has misunderstood our business and wrongly determined that gambling laws apply to Sorare," said a representative from Sorare, emphasizing the company's stance.
The court hearing scheduled for October 4 will be watched by both the blockchain and sports communities. This case could set a precedent for how blockchain-based games are regulated in the UK.
