The UK Gambling Commission launched an investigation into the NFT soccer game Sorare.

The UK gaming authority is examining whether or not Sorare, a fantasy NFT soccer game, should be needed to get a gambling license.

In the United Kingdom, the Gambling Commission has launched an investigation into Sorare, a popular NFT fantasy soccer game that received $680 million in a financing round last month.

“The Gambling Commission is currently carrying out enquiries into the company to establish whether Sorare.com requires an operating license or whether the services it provides do not constitute gambling.”

However, Sorare — which raised $680 million in September for its NFT trading card network — denied any involvement in “regulated gambling.” “We are sure that Sorare does not provide regulated gambling. This has been verified by professional legal views at every step of the business’s development, including many funding rounds,” the company said on its blog.

According to a “consumer information notice” issued earlier this week by the Commission, Sorare is not licensed at the moment, and customers should exercise caution while dealing with the site: “We will always engage and maintain an open conversation with authorities that contact us to learn more about our game,” Sorare said.

According to Sorare’s website, “Sorare is a blockchain-based fantasy football game in which players earn prizes for selecting the best lineups.”

Nicolas Julia and Adrien Montfort created the game in 2018. Players purchase, sell, trade, and manage a virtual team using digital player cards. The network, which is built on Ethereum, has collaborated with more than 100 soccer teams, including big names like Real Madrid and Liverpool.

Richard Williams, a gambling and regulatory partner at Keystone Law, stated in an opinion article for Gambling Insider that Sorare may come within the category of pool betting or gaming regulated activity under the Gambling Act 2005:

“While the Commission will undoubtedly do a comprehensive examination of the goods, there is undoubtedly a legal gray area here. Depending on how the product is organized, it may come under the betting (pool betting) or gaming regulated activity under the Gambling Act 2005.”

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