Should Sorare be considered as gambling and, as such, be subject to the same obligations as sports betting sites, among others? This is the question posed by the National Gaming Authority.
Sorare, the French fantasy football start-up that has embraced the NFT card model, will it have to accept new rules of the game? It is likely, as the National Gaming Authority looks into his case, believing that it could be considered gambling and fall under sports betting legislation.
This would obviously be a blow as Sorare, already valued at 4.2 billion euros, is growing, simultaneously surfing on interest in cryptocurrencies and non-fungible tokens. However, the risk is real for the company and its hundred employees, decisions limiting its activity having already been taken in several countries. In Switzerland, for example, Sorare is considered gambling and is subject to a temporary ban. In Great Britain, an investigation was opened.
A crucial decision for the future of Sorare
It is in this context that the leaders of Sorare must meet ANJ agents in September. Among them, Nicolas Julia, co-founder, believes that if it is undoubtedly necessary to supervise the activity of his company, the rules to which it must be subject should not be those of gambling. Logic: seeing Sorare fall under this legislation would greatly disrupt its development, forcing the platform to more checks and verifications. The company would therefore have no choice but to seek approval from the ANJ, to verify the identity and age of the users, to provide a response to the phenomena of addiction and to pay more taxes.
For Nicolas Julia, Sorare constitutes “a new innovative model”based on “an emerging technology”who “does not fit into any existing framework”. However, certain characteristics of its activity could correspond to the definition of gambling as formulated by the Internal Security Code. It is indeed a speculative game that requires an investment and dangles gains. As a reminder, users buy cards from professional players in the form of NFTs, their value varying according to various parameters ranging from their rarity to the sports performance of said players in real life. And although there is no obligation to pay to access Sorare, the heart of the game does revolve around paying cards.
Asked by The worldJulien Pillot, professor of digital economy, considers that Sorare’s line of defense could hold, and that only part of its activity is reminiscent of gambling.