Legal expert: Sorare “could fall under regulated betting or gaming activity”
Sorare could fall into the category of pool betting or gaming regulated activity under the Gambling Act 2005, according to Richard Williams, gambling and regulation partner at Keystone Law.
The Gambling Commission put NFT fantasy football site Sorare.com on notice when it cautioned customers against using the platform, with the speculative nature of its digital trading cards raising questions about the company’s categorisation.
Since then, speculation has abounded about where Sorare will end up when the Commission completes its enquiry.
In quotes sent to Gambling Insider, Williams offered his insight on the possible outcomes: “The Commission will no doubt carry out a thorough review of the product, but there is certainly a legal question mark over this. It is possible that the product could fall into the betting (pool betting) or gaming regulated activity under the Gambling Act 2005, depending on how it is structured.”
With experience in remote and land-based gambling, Williams is regarded as an expert in his field and works with operators to advise on operating licences and the risks of operating in domestic and international markets.
While everyone awaits the results of the regulator’s investigation into the Paris-based blockchain company, Williams contemplated the worst-case scenario for Sorare, as well as examining the Commission’s motives.
“If it is gambling, it is highly unlikely that the Gambling Commission would issue an operating licence to a business which transacts with customers using cryptocurrency, as it is difficult to establish the source of funds of customers,” he continued.
“Given the recent issues surrounding the collapse of Football Index, this appears to be more proactive action by the Commission to ensure that consumers are protected, where an activity that may be regulated gambling is being offered to consumers in Great Britain without a licence.”
Source : www.gamblinginsider.com