United Kingdom: legal proceedings brought by the Gambling Commission against Sorare (NFTs)

Sorare, a French start-up specialised in NFTs featuring players and fantasy leagues, has been charged by the UK Gambling Commission with breaching UK law by offering gambling-like services without the necessary licence, according to the body on 26/09/2024. A hearing is scheduled to take place before Birmingham Magistrates' Court on 04/10/2024.

This is only the second legal proceeding initiated by the Gambling Commission since its creation in 2007. The Commission announced that it would be investigating Sorare's commercial practices in the UK in October 2021, taking the view that the platform's digital card acquisition system, which enables users to speculate on the future value of their cards, amounted to gambling. In France, the company received a "warning" from the Autorité Nationale des Jeux (National Gaming Authority) for a similar reason in July 2022, before upgrading its offering to avoid being reclassified as a gambling operator on 18/11/2022.

"We are aware of the claims made by the Gambling Commission and have instructed our UK counsel to challenge them. We firmly deny any…