The UK Gambling Commission has brought charges against French fantasy sports platform Sorare, accusing it of operating unlicensed gambling services in Britain. This case, three years in the making, marks a rare instance of the commission taking legal action against a company. Sorare, which has partnerships with major sports leagues like the Premier League and NBA, will appear in court on October 4 to contest the charges.
Since its establishment in 2005, the UK Gambling Commission has only levelled charges against one other entity, making this case particularly significant. Earlier this year, the commission also launched investigations into several politicians.
In its brief statement, the commission said:
No further comments were made by the commission.
Sorare has firmly denied the charges, maintaining that the UK Gambling Commission has misunderstood the nature of its platform. The company describes itself as a fantasy sports and collectibles game, where players assemble fantasy teams using digital cards in the form of NFTs (non-fungible tokens). These cards can be traded, and their performance is linked to real-world athlete activities.
“We are aware of the claims made by the Gambling Commission and have instructed our UK counsel to challenge them,” a Sorare spokesperson said. “We firmly deny any claims that Sorare is a gambling product under UK laws.”
Founded in 2018, Sorare boasts over five million users in 180 countries. The platform allows users to buy and sell athlete cards using cryptocurrency and compete in fantasy leagues based on real-world sports results.
The company has partnerships with over 300 sports teams, including some of the most prominent football clubs and leagues in the world, such as the Premier League and La Liga. Additionally, Sorare has secured backing from major investors like SoftBank and Accel, while collaborating with global sports figures like Serena Williams and Lionel Messi.
This isn’t the first time Sorare has faced scrutiny over its operations. According to a report on The Sorare Ramble podcast, the company was subject to similar charges in France, though the case was resolved before reaching court.
The UK Gambling Commission’s investigation into Sorare began in 2021. Given the commission’s history of rarely taking such legal action – this being only the second time it has done so – this case is particularly noteworthy for both the online gambling and fantasy sports industries. With the hearing just days away, the outcome of this legal battle could have far-reaching implications, not only for Sorare but for the growing intersection between blockchain-based games and gambling regulations worldwide.