Sorare.com, the Ethereum-based fantasy soccer game, has come under inspection by the UK Gambling Commission, with an investigation on the game and its gambling license, or lack thereof.
The scrutiny came after Sorare recently raised a $680m Series B funding round at a valuation of $4.3bn.
Sorare allows players to buy and sell officially licensed digital trading cards with over 100 worldwide soccer teams featured. Each card is sold as an NFT.
Due to the fantasy sports element of Sorare, users can build weekly lineups and compete against other users. Top players can win free cards and Ethereum cryptocurrency rewards.
A statement posted by the UK regulators, said: “The Gambling Commission is currently carrying out inquiries into the company to establish whether Sorare.com requires an operating license, or whether the services it provides do not constitute gambling.”
The statement suggested Sorare could be offering unregulated gambling, and continues to explore the question surrounding the website requiring a license to operate. The commission will cease comments until the investigation is complete.
However, Sorare is adamant that it does not require a gambling license, posting a retaliation statement, saying: “We are very confident Sorare does not offer any forms of regulated gambling. This has been confirmed by expert legal opinions at every stage since the company was founded, including during a number of fundraising rounds.
“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.”