Fantasy sport crypto platform Sorare has pleaded not guilty after the UK Gambling Commission (UKGC) accused the company of unlicensed gambling activity in the UK. ReadWrite reported the charges earlier this month.
The UKGC has accused the Paris-based company of breaching the Gambling Act 2005 by “providing facilities for gambling without holding an operating licence.” At the end of last month, the commission made the announcement in an exceptionally rare instance of the regulator using its prosecutorial powers.
According to Casino.org, UKGC states: “The charges are the culmination of a three-year UKGC investigation into Sorare, which has a license with the English Premier League to sell digital sports cards of players from all 20 of the league’s teams, a deal rumored to be worth US$40 million a year.”
In response, Sorare issued a statement acknowledging the claims. However, the company stated: “The Commission has misunderstood our business and wrongly determined that gambling laws apply to Sorare. We cannot comment further whilst legal proceedings are underway.”
UKGC reports it will not be commenting further on the case until its conclusion.
On Friday (Oct. 4), the company reaffirmed its stance by entering a not guilty plea at the Birmingham Magistrates Court. A pre-trial hearing is set for March 10, 2025, with the trial scheduled to resume on June 16.
What is Sorare?
The football-themed NFT platform, which is a partner of the Premier League, allows players to take control of a virtual team consisting of digital cards – each purchasable with cryptocurrency.
Sorare has over five million users across 180 countries, as well as backing from investors like SoftBank, Accel, and Benchmark. It has also collaborated with well-known athletes like Serena Williams, Lionel Messi, Kylian Mbappé and Rio Ferdinand as investors, ambassadors, and advisors to gain traction in the world of sports.
The UKGC launched an investigation into the French company in 2021 to determine if it required a license to operate in the UK, which has since escalated into the ongoing legal dispute.
Update: A Sorare spokesperson told ReadWrite: “We will not be commenting further on the case until its conclusion.”
ReadWrite has reached out to the UK Gambling Commission for comment.
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