Sorare, the fantasy sports platform utilizing blockchain technology, has come under scrutiny from UK regulators for allegedly offering unlicensed gambling services. This marks a significant development as it’s the first time the Gambling Commission has taken action against a blockchain-based platform.

Based in France, Sorare provides fantasy games centered around soccer, basketball, and baseball, where users can purchase and trade digital collectible cards as NFTs. The company has formed partnerships with major sports leagues, including the English Premier League and Germany’s Bundesliga.

The UK Gambling Commission has charged Sorare with “providing facilities for gambling without holding an operating licence” in violation of the Gambling Act 2005. This case could set a precedent for how regulators approach Web3 and NFT-related companies in the future.

Following a three-year investigation that began in 2021, Sorare has been ordered to appear at Birmingham Magistrates’ Court on October 4. The investigation aimed to determine whether the fantasy sports firm required a gambling license to operate in the UK.

This move aligns with increasing enforcement by UK regulators against suspected illicit activities in the crypto sector, following recent actions against unregulated crypto ATMs.

Sorare has firmly denied that its platform constitutes a gambling product under the laws of England and Wales. The company argues that the regulator has misunderstood its business model and applied inappropriate gambling laws to its operations.

As the first case of its kind against a blockchain-based platform, the outcome could have far-reaching implications for the regulation of Web3 firms and the broader cryptocurrency industry in the UK.