Date: 07.10.2024

by Adam Dworak

Last update: 07.10.2024 10:50

Sorare Faces Legal Battle Over Alleged Unlicensed Gambling Services in the UK

Sorare is in a legal battle with the UK Gambling Commission (UKGC). The company, which offers digital card trading with professional athletes, pleaded not guilty to operating illegal gambling services. Sorare’s defence was heard at Birmingham Magistrates’ Court last Friday.

UK Gambling Act at the Centre of the Dispute

The charges against Sorare are based on the 2005 Gambling Act. The UKGC says Sorare operated gambling services without a licence for three periods between 7 February 2022 and 5 April 2024.

But Sorare says its platform, built on blockchain and using Ethereum-based digital cards, doesn’t meet the UK’s definition of gambling.

Launched in 2018, Sorare is a fantasy sports platform where users collect and trade digital cards of athletes to build teams and compete.

Although it started with football, it has since added basketball and baseball. Despite its growth, Sorare’s business model has been under fire with critics saying it’s too close to traditional gambling products.

In court, Sorare’s lawyer said the company doesn’t provide any gambling services, disagreeing with the UKGC. The trial is set to start on 16 June 2025 and will last a week.

The outcome of the case will be a big test for fantasy sports platforms in the UK.

France’s Approach to Sorare and Crypto Gaming

While Sorare is facing legal issues in the UK, it’s growing internationally. The platform has big name partnerships, including a major deal with the Premier League, and has investors like Lionel Messi and Serena Williams.

In France, Sorare’s home country, the government has started to address the legal uncertainty around crypto gaming.

In October 2023, France introduced the so-called “Sorare law” to create a regulatory framework for games involving NFTs and cryptocurrencies.

This law defines these games as separate from traditional gambling services so operators like Sorare have clarity. But the UK hasn’t followed suit yet, leaving Sorare in a tricky spot.

What it means for the future of fantasy sports in the UK

Sorare may be in trouble in the UK if the UKGC wins. The outcome of this case will impact other fantasy sports platforms that use blockchain.

Until the UK introduces new laws to address the crypto-gaming space, Sorare’s status will remain unclear.

Sorare remains firm in its stance, stating, “The commission has misunderstood our business and wrongly determined that gambling laws apply to Sorare.”

The trial’s outcome could shape the future of both fantasy sports and crypto-based gaming in the UK market.