UK Gambling Commission Sues Sorare for Illegal Gaming

Sorare is a cryptocurrency-based game focused on fantasy sports. Founded in 2018, the platform allows users to build virtual teams. Players can collect digital cards representing professional footballers and form teams of five players using cards based on Ethereum technology. In addition to football, Sorare offers basketball and baseball games.

Despite the product’s popularity among sports fans, some question whether the game is a form of gambling.

The Gambling Commission has decided that Sorare is providing illegal gambling to UK players and has taken the matter to court. The matter has been under investigation since 2021, when the regulator first launched an investigation. In July 2023, Sorare was sent a Freedom of Information Act request for information.

According to the latest developments, the UKGC alleges that the platform is providing gambling without a license, breaching sections 33(1), (4) and 36(3), (3A) of the Gambling Act 2005. A formal hearing into the case will take place on October 4 at 10am at Birmingham Magistrates' Court, and will be chaired by the commission itself. The UKGC said it would not comment on the case until the trial is complete.

Amid the case, the UKGC recently released statistics on the gambling participation of Britons from January to April 2024. Based on a survey of more than 5,000 citizens, gambling participation levels remain stable.

However, another report has shown that a significant number of Britons continue to gamble on unlicensed platforms, creating a tax gap. In addition to tax concerns, the authorities are concerned that unlicensed operators are failing to comply with measures to protect players from problem gambling, increasing the risks for consumers.

In response, Entain, one of the largest licensed operators in the UK, has called for greater enforcement, based on a report by Regulus Partners.