NFT platform Sorare is currently being investigated by the UK Gambling Commission in a move that had led many people to believe that legislation and regulations surrounding the trading of NFTs might be soon announced. NFT is a way to own the rights to a digital image or product. We’re starting to become much more familiar with the trading of digital products thanks to the likes of Bitcoin and other digital currencies becoming more popular within mainstream audiences. With NFT’s there is no way to say what the exact value of one is; or what they should be traded for. Currently, digital trading of this kind is not regulated, but could that be about to change?
Sorare Being Investigated
Sorare is a fantasy football game that is based on blockchain and it has recently been announced that it is being investigated by the UK Gambling Commission. There are several parts that the UK Gambling Commission are likely to be paying attention to and investigating, but the fact that it is a game that is not licensed within the UK is likely to be towards the top of the list.
The commission explained: “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. Consumers are being advised to consider this information when deciding whether or not to interact with the site.”
One of the first things the UK Gambling Commission are thought to be looking at is whether Sorare does indeed need a license in order to operate within the UK or whether it doesn’t count as gambling. The reason it is being investigated is that the game allows you to buy football players that are represented in the form of NFT – which you can then use to play within the game and they may decrease or increase in value, all based on how well your player is doing in real-life football.
There are mixed opinions when it comes to considering whether buying players within a game like this constitutes gambling. The most recent version of the popular football game Fifa has loot boxes that players can purchase within the game and these are also receiving mixed opinions from those that have an interest in the industry. For some, it is thought that these add-ons are optional and therefore harmless; because if you don’t want to purchase one you can still continue with most of the game without it. However, others feel that as these games are often aimed at children there should be no option to bet with real money – after all, you have to be over 18 to become a member of any online casino so should football bets in this way be classed any differently?
Gambling within the UK is a widely accepted pastime and something that many people choose to take part in but it does come with regulations and restrictions.
Gambling and sports betting within the UK has become more mainstream since the Labour government in the 2000s relaxed regulations surrounding the advertising and marketing of gambling and sports betting products. However, since this changes campaigners and critics have been pushing for tighter restrictions and more government controls over the industry – it’s an ever changing and evolving landscape based on the opinions of organisations and changes in technology. The aim of the UKGC is to ensure a majority of these regulations see players are given a fair and transparent gambling experience – for example, they know what the odds are of winning a prize and that these odds are accurate rather than just made up in order to entice players in with unrealistic expectations of what they could win.
Sites like Compare.bet are subject to regulation from the UKGC which means that people can use the casinos safely in the knowledge that they are going to be using a site that is safe. Anyone that is conducting any sort of financial transaction online, especially those that require them to enter personal details should make sure that the platform they are using is safe and secure. Gambling regulations and licensing go some way to making this happen, as users can opt to use a platform that is licensed and therefore safe to use.
Will We Be Seeing More Crypto and NFT Regulation In the Future?
When any shift in online betting happens, we see the UK Gambling Commission and gambling charities try to step up and make changes to keep everyone safe. Having regulations in place is a great idea for much of the gambling industry, but they don’t do much good if they only cover out of date gambling trends. We’re starting to see things like loot boxes and NFT transactions more often so it really is no surprise that the UK Gambling Commission are going to start to investigate these – after all, without regulation consumers could be left open to exploitation really easily.
However, just because we know that a change in regulation is likely that doesn’t mean that we can be sure what the new regulations are likely to be. Firstly, we need the UK Gambling Commission to decide on whether Sorare should be classed as a gambling platform or not – should they decide it is this will likely lead the way of other similar platform offers to be investigated in the same way. The first thing that will happen is likely to be that they will need to be licensed; which immediately gives consumers peace of mind that the product they’re buying is one that is the age to purchase. After this it could be that the age range of people that can access these games is changed – after all, you need to be 18 or over to place a bet on a physical football match so should betting on virtual players be any different? That will be down to the UK Gambling Commission to decide.
For now, Sorare and similar platforms are able to continue in the same way but should probably have an open mind to the fact that they may well have to change the way they operate in the coming months. The investigation into these platforms will take some time, but the outcome could affect a lot of what they offer so it is best for Sorare and other digital platforms like this start to be prepared.
Find more: Gambling commission nft sorare – Krypto-NFTs