Crypto

Slowdown for Sorare in France? The Gambling Authority would like to formalize the operation of a startup

Should Sorare be treated like a gambling game and, as such, be subject to the same obligations as sports betting sites? This is a question asked by the National Gambling Authority.

Sorare, the French fantasy football startup that has adopted the NFT card model, should it embrace the new rules of the game? Probably because the National Gaming Authority is looking into his case, believing it could be considered gambling and subject to sports betting legislation.

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This will obviously be a hit as Sorare, already valued at €4.2 billion, is growing while increasing interest in cryptocurrencies and non-fungible tokens. However, the risk to the company and hundreds of its employees is real, and decisions to restrict its activities have already been made in several countries. In Switzerland, for example, Sorare is considered gambling and is subject to a temporary ban. An investigation has been launched in the UK.

A decisive decision for the future of Sorare

It is in this context that Sorare leaders are to meet with ANJ agents in September. Among them, Nicolas Giulia, the co-founder, believes that if it is absolutely necessary to control the activities of his company, the rules to which it must obey should not be the rules of gambling. Logic: If Sorare falls under this legislation, it will severely undermine its development by forcing the platform to conduct additional checks and reviews. Thus, the company would have no choice but to get approval from ANJ to verify the identity and age of users, respond to addiction phenomena, and pay more taxes.

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For Nicolas Giulia, Sorare represents a “new innovative model” based on “emerging technology” that “does not fit into any existing framework.” However, some characteristics of its activities may meet the definition of gambling, formulated by the Internal Security Code. This is a truly speculative game that requires investment and brings profit. We remind you that users buy cards from professional players in the form of NFTs, their value varies depending on various parameters, from their rarity to the sports performance of said players in real life. And while you don’t have to pay to access Sorare, the essence of the game really revolves around payment cards.

Asked by Le Monde, Julien Piyo, a professor of digital economics, believes that Sorare’s line of defense can stand, and that only part of its activity resembles gambling.

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