The UK Gambling Commission has launched legal proceedings against Sorare, a prominent fantasy football platform valued at $4.3 billion, for allegedly providing unlicensed gambling services. The case, which involves Sorare, a company widely recognized for its partnerships with the Premier League and other major football clubs, has raised significant concerns in both the gaming and regulatory communities. This marks one of the rare instances where the Gambling Commission has used its prosecutorial powers, placing a spotlight on the intersection of fantasy sports, cryptocurrency, and NFTs.
Founded in 2018 by Nicolas Julia and Adrien Montfort, Sorare has rapidly grown to become one of Europe’s fastest-growing startups. The company offers a unique fantasy football experience where players can create their own teams using digital cards, represented by non-fungible tokens (NFTs). These tokens are tradeable and can be used to compete for various rewards, including cash prizes, VIP tickets, and signed memorabilia. Despite its innovative business model, Sorare is now facing scrutiny over whether its operations classify as online gambling, which would require a formal license in the UK.
In October 2021, the UK Gambling Commission announced that it was investigating Sorare to determine if its products fell under the purview of gambling regulations. Nearly three years later, the Commission has officially charged the Paris-based company with offering unlicensed gambling services. Sorare is scheduled to appear before the Birmingham Magistrates’ Court on October 4th, where it will contest the charges. If convicted, this could lead to significant legal and financial consequences for the company, which denies the allegations.
A spokesperson for Sorare stated, “We are aware of the claims made by the Gambling Commission and have instructed our UK counsel to challenge them. We firmly deny any claims that Sorare is a gambling product under UK laws. The Commission has misunderstood our business model and incorrectly applied gambling laws to our platform.” The company remains confident in its legal stance but has refrained from making further comments due to the ongoing legal proceedings.
Sorare’s rise to prominence has been supported by several high-profile partnerships and endorsements. In addition to its affiliation with the Premier League, Sorare boasts collaborations with Real Madrid, Barcelona, and Bayern Munich. The platform has also ventured into the US market, forming agreements with Major League Baseball (MLB) and the National Basketball Association (NBA). Prominent sports figures, including Serena Williams, Lionel Messi, and Zinedine Zidane, are listed as investors and ambassadors for the brand, further elevating its profile in the global sports community.
In 2023, Sorare secured a four-year licensing deal with the Premier League, allowing the platform to sell digital sports cards of players from all 20 clubs. This deal, estimated to be worth £30 million annually, underscores the company’s strong ties to the sports world. Sorare’s innovative blend of fantasy sports, NFTs, and digital trading has drawn the attention of major investors such as SoftBank, Accel, and Benchmark, who have contributed to the company’s recent $680 million fundraising, bringing its total valuation to $4.3 billion.
Despite the legal challenges, Sorare’s future remains uncertain but promising. With over 3 million users across 180 markets, the platform has carved out a niche in the fantasy sports and NFT ecosystem. However, the outcome of the UK Gambling Commission’s prosecution could set a precedent for other companies operating in the crypto-based gaming space, where regulatory boundaries are still being defined.
As this case unfolds, it will be closely watched by industry stakeholders, regulators, and legal experts. The prosecution highlights the growing need for clarity in the regulation of fantasy sports platforms that incorporate blockchain technology and digital assets. Should the UK courts rule against Sorare, it could prompt further investigations into similar platforms, reshaping the landscape of online gaming and fantasy sports worldwide.
Ultimately, the legal battle between the Gambling Commission and Sorare will play a pivotal role in determining how cryptocurrency-driven platforms are regulated under existing gambling laws. Whether Sorare can successfully argue that its business model falls outside the scope of these regulations will likely have far-reaching implications for the broader industry.
