Sorare Stands Its Ground in the Face of UKGC Accusations

The company pleaded not guilty, insisting its services do not fall under UK regulations, as they do not fall under the criteria of “gambling”Image Source: Shutterstock.com

Sorare, the fantasy sports platform known for its partnerships with renowned soccer leagues like thePremier League, has pleaded not guilty to accusations from the UK Gambling Commission(UKGC) of offering illegal gambling services. The French-based company, which allows users to collect and trade digital cards featuring professional sportspeople, entered its plea atBirmingham Magistrates’ Courton Friday.

The Debate Hinges on What Constitutes Gambling in the UK

The charges cite the 2005 Gambling Act, alleging that Sorare offered gambling without a license over three separate periods between 7 February 2022and 5 April 2024. Sorare argues its platform, based on blockchain and usingEthereum-based cards, does not provide gambling products as defined by UK licensing requirements.

Sorare developed its crypto-based fantasy sports game in 2018, allowing players to assemble their dream team. Sorare players can collect digital playing cards representing professional soccer athletesand assemble them into five-player teams. The company also offers basketball and baseball-themed games. Similar to other fantasy sports offerings, many feel Sorare’s games are dangerously close to gambling.

During the short court hearing, the lawyer representing Sorare stated the company does not offerany gambling facilities despite opposing claims by the UKGC. The trial should commence on16 June 2025and will likely last seven days. This case could have significant repercussions for the broader industry, as it willprovide a precedentfor the legal status of fantasy sports offerings in the UK.

France Has Ngaken Steps to Resolve Similar Issues

Despite Sorare’s legal troubles, the platform continues togrow in popularity, securing high-profile partnerships, such as a four-year deal with the Premier League in 2022. The operator has also attracted high-profile investors and advisers, including global sports stars like Lionel Messi, Serena Williams, and Zinedine Zidane.

France, Sorare’s home nation, sought to resolve the ambiguity surrounding crypto games in October 2023 via its “Sorare law.” The legislation aims to provide the foundation for a regulatory frameworkfor games using NFT and crypto features, differentiating such titles for gambling. However, the UK has yet to codify crypto-based offerings, leading to the current legal predicament.

The commission has misunderstood our business and wrongly determined that gambling laws apply to Sorare.

Sorare statement

While sports fans have embraced Sorare’s products, UKGC’s case threatens to deprive the platform of one of its most lucrative markets. The result of this trial may have significant implications for the future of fantasy sports and blockchain-based gamingin the UK, at least until the nation follows in France’s footsteps and enactsnew legislation to resolve this burgeoning issue.