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The UK Gambling Commission (UKGC) has taken legal action against Sorare, a popular crypto fantasy sports platform, accusing it of offering unlicensed gambling services in the UK. Sorare will face these charges in the Birmingham Magistrates’ Court on October 4.
The case revolves around Sorare’s business model, which allows users to buy, sell, and trade digital player cards. Users can manage teams in football, basketball, and baseball, competing for rewards like cash, merchandise, and VIP experiences. These activities have raised concerns about whether Sorare’s platform qualifies as a form of gambling under UK law.
Sorare’s business has been scrutinized before. In 2021, France’s gambling regulator, ANJ, launched an investigation due to concerns about the platform’s similarities to betting exchanges. At that time, Sorare agreed to improve free access to its tournaments to address legal uncertainties raised by the ANJ.
Sorare’s platform, which blends fantasy sports with digital trading, has secured high-profile partnerships and investors. The site boasts agreements with major sports leagues such as Spain’s La Liga, Germany’s Bundesliga, the English Premier League, and the Major Soccer League (MLS). In addition, top athletes like Kylian Mbappe and Serena Williams are investors in the company alongisde former football players Gerard Pique and Rio Ferdinand. Sorare has attracted over three million users from 180 countries and raised $769 million in funding, with a valuation of $4.3 billion.
Despite the legal pressure from the UKGC, Sorare denies that its platform constitutes gambling under UK law. A spokesperson for the company stated, “The commission has misunderstood our business and wrongly determined that gambling laws apply to Sorare. We cannot comment further while legal proceedings are under way,” as reported by The Guardian.