The United Kingdom’s Gambling Commission has issued a notice against Sorare.com, a non-fungible token (NFT)-based fantasy football platform.
According to last week’s notice, the NFT platform is not licensed by the UK gambling regulatory authority and is now under scrutiny.
“This means that any activity completed on the site by consumers in Great Britain is outside of the gambling regulations that a licensed operator should comply with,” the Gambling Commission stated.
Though the regulator did not warn or take any harsh action against the platform, it asked consumers to consider its notice and decide ‘whether or not to interact with the site’.
The Commission additionally said that it 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.”
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An NFT Startup
Sorare tapped the booming NFT space and has become one of the fastest-growing startups. It provides a platform for football fans to trade Ethereum-based NFT player cards and also partners with more than 120 big and small football clubs.
The young company also attracted the attention of big-ticket investors and raised $680 million earlier this year in a Series B funding round led by Softbank. Last year, it raised $4 million in a seed round and $50 million in a consecutive Series A round.
Despite the regulatory notice, Sorare is confident that its services do not violate the mandatory requirements of the Gambling Commission.
“This has been confirmed by expert legal opinions at every stage since the company was founded, including during a number of fundraising rounds,” a company spokesperson told crypto-focused news outlet The Block. “We will always engage and have an open dialogue with authorities who reach out to us to learn more about our game.”