The UK Gambling Commission (UKGC) has alerted the public that Blockchain-based fantasy football operator Sorare (Sorare.com) does not carry a UK gambling licence.
The Commission warned players 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”.
Launched in 2018, Sorare is an Ethereum blockchain built football game that allows players to buy, sell and trade ‘virtual football cards’ to manage their virtual fantasy teams competing in leagues and head-to-head matches.
Sorare brands itself as the only ‘digital collectables game’ for football as its player card purchases and exchanges are recorded on the Ethereum blockchain as a non-fungible token (NFT).
The blockchain business is led by Paris co-founders Nicolas Julia (CEO) and Adrien Montfort (CTO), who this September raised $680 million in funding led by venture capital Atomico in partnership with former Premier League footballer and England International Rio Ferdinand.
The UKGC disclosed that it was currently evaluating whether Sorare’s business constituted gambling with regards to whether its platform would require an operating licence.
“Consumers are being advised to consider this information when deciding whether or not to interact with the site,” the UKGC advised.
The Commission’s approach to granting online gambling licences has come under scrutiny following the high-profile collapse of Football Index, which left its customers an estimated £80 million out of pocket.