The National Gaming Authority attacks Sorare for hidden sports betting!

Sorare offers what is called a fantasy football game. The player who is registered on Sorare composes teams from player cards which are as many NFTs. However Sorare could be considered as a proposed platform for hidden sports betting according to the National Gaming Authority (ANJ).

According to information from BFM Business, the National Gaming Authority has issued an opinion against Sorare, which will have to prove that it is not a sports betting site.

To understand the accusations against Sorare, it is essential to go back to how it works: customers can buy virtual cards (whose ownership is in the form of an NFT) with different levels of rarities, and linked to a player of football to speculate on their growth according to the growth of the notoriety of the latter.

Then they use those same cards to participate in virtual tournaments. These tournaments reward players based on map player stats in real matches. For example when they score goals or make an assist. It is this use that reveals the ANJ’s doubts.

“Are deemed to be gambling and games of chance and prohibited as such are all offered to the public, under any denomination whatsoever, to give rise to the hope of a gain which owed, even partially, to chance and for that the financial sacrifice is required from the participants” specifies article L320-1 of the Internal Security Code.

A definition that could correspond to the mode of operation of Sorare, who, for example, recently hired Kylian Mbappé as ambassador and investor according to Frédéric Guerchoun, legal director of the ANJ.

For there to be gambling, there must be an offer made to the public, a gain in kind or in cash, as well as a financial sacrifice. In our eyes, the financial sacrifice as understood by the case law is an expense. But in the case of Sorare, it is imperative to buy cards to participate” says Frédéric Guerchoun, comments collected by BFM Business.

This idea of ​​financial sacrifice is not thought of in the same way by Sorare who defends the functionality of its platform.

“In the state of current laws, our analysis is that Sorare does not fall within the scope of gambling regulations. […] On Sorare, there is no notion of stake or financial sacrifice, depending on a sporting event. When a Sorare card is played in our fantasy game, it is never lost. This card can be played 1 time or 500 times, in the first season as well as in the tenth season ”defends Sorare, to BFMTV.

For Sorare, this risk could be a significant threat. French law prohibits gambling, but there are some exceptions such as sports betting and casinos. If the purchase of virtual cards for the purpose of winning money on sporting events is classified as sports betting, then Sorare must apply for approval from the ANJ to become a licensed online operator like The Bet, Winamax and others.

In addition to having to deal with the weight of taxation, Sorare would have to determine the identity of each user, and block access to minors (which is already the case according to its terms of use). This could have serious consequences on the number of active users of the site in France, but open the door to restrictions in other countries, particularly in Europe where gaming legislation is beginning to be standardized.

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