Sorare: Fantasy football rejected by the British Gambling Commission

At the heart of the debate surrounding Web3 regulation, Sorare, the revolutionary fantasy football game, finds itself in a difficult position with the UK Gambling Commission. Accused of offering gambling-like activities without an appropriate license, the future of this iconic French company is now at stake. Let’s analyze the ins and outs of this complex situation. Sorare’s rise to prominence Sorare, founded in 2018, has attracted a huge audience thanks to its innovative concept that combines NFTs and sports. By allowing users to create virtual teams based on football players, the game has captivated more than three million fans around the world. Having stars like Lionel Messi and Antoine Griezmann as ambassadors only adds to its appeal. With a valuation reaching over $4 billion, the company has established itself as a major player in the sector. An investigation launched by the British Commission In October 2021, the British Gambling Commission opened an investigation to determine whether Sorare’s activities constituted gambling. This review followed growing concerns about the regulation of new business models related to online gambling. After several years of review, the Commission finally concluded that Sorare does indeed offer gambling, leading to legal action.Implications of this legal action On October 4, Sorare’s representatives will have to defend their position before the Birmingham Magistrates’ Court. The company finds itself in a delicate position, as the court’s decision could set a precedent that would affect not only its future, but also that of many other players in the Web3 sector.The contested business model

Sorare’s business model is based on the sale of player cards as NFTs.

Users buy, sell, and trade these cards while basing their team’s value on the athletes’ actual performance. This is therefore a dynamic where speculation plays a central role. Critics of the Commission believe that this system closely resembles sports betting, a strictly regulated field in the United Kingdom.A reaction from Sorare A spokesperson for Sorare categorically denied the Commission’s accusations, stating that gambling laws do not apply to their business. They argue that the fantasy football model is fundamentally different from traditional gambling. By asserting that the Commission misinterpreted their business model, Sorare seeks to defend itself against these accusations, which could have disastrous consequences. A regulatory framework in transition This case is part of a broader context of regulations struggling to keep pace with innovations such as those offered by Web3. Current regulations were not necessarily designed to address emerging business models like Sorare’s. This situation raises questions and highlights the justice system’s ability to cope with new technologies. The stakes for the industry The court’s verdict on October 4 could have repercussions not only for Sorare, but for the entire fantasy football and NFT industry. Indeed, if the British Commission wins its case, it could exacerbate mistrust around online gambling and slow the adoption of blockchain technologies in this sector. Conversely, if Sorare succeeds in proving its model legal, it could pave the way for other innovations and collaborations in the sports and digital fields. https://www.youtube.com/watch?v=ytHD8StYSKc