Sorare, a platform where users buy and trade NFT football cards to build a fantasy team, is under investigation by the UK’s Gambling Commission.
In a statement the Commission said that “any activity completed on the site by consumers in Great Britain is outside of the gambling regulations that a licensed operator should comply with.” The UK watchdog advised users to take a lack of regulatory oversight into account while on the platform.
“The Gambling Commission is currently carrying out enquiries into the company to establish whether Sorare.com requires an operating licence or whether the services it provides do not constitute gambling,” the statement confirmed.
Sorare hit back at the comments and said that multiple legal opinions had been sought at every stage since the company was founded. A spokesperson wrote “we are very confident Sorare does not offer any forms of regulated gambling.”
“We will always engage and have an open dialogue with authorities who reach out to us to learn more about our game. We believe this is the responsible way to grow our game and community globally,” the spokesperson added.
It comes after Sorare announced recent partnerships with Spain’s La Liga and the top two divisions of the German Bundesliga.
The partnerships brought Sorare a step closer to its ambition of securing deals with the biggest 20 football leagues worldwide and the platform said it would release tradable NFT clips of football highlights following the deal with Bundesliga.
Momentum behind the company, which sits at the intersection of sports and NFTs, has swelled in recent months with Sorare raising $680m in a series B funding round last month.
Not everyone is sold on the idea however, with Max Heinemeyer, Director of Threat Hunting at Darktrace, warning that security remains a major concern.
“While NFTs are easy to purchase, they are notoriously complex to secure,” said Heinmeyer. “Individual investors may not understand the risk or how to secure NFT football cards properly, which is something cyber criminals will take advantage of.”