what could change about the application

“We still have serious doubts”, the National Online Gaming Authority (ANJ), an independent administrative authority, said about the French nugget Sorare. With its fantasy football NFT platform, where players can purchase football player cards, his fate could be sealed new restrictions.

The ANJ did “a notice and information requested by this company”, said Frédéric Guerchoun, his legal director on the set of BFM Business. From now on, it will be necessary to prove that it is not a sports betting platform.

Sorare risks stronger regulation if it does not provide new topics before the 2022 school year begins. And the consequences could be significant. “We should take a stand”, the ANJ official said. To justify itself, the $ 4.3 billion French startup will highlight the usefulness of cards, once purchased, to be used in virtual team tournaments.

Money, in cryptocurrencies, is present everywhere on the platform, but Sorare justified its difference with sports betting by saying this “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 “.

For the ANJ, “For there to be gambling, there must be an offer made to the public, a gain in kind or cash, as well as a financial sacrifice. In our eyes, the economic sacrifice intended by jurisprudence is an expense. But in the case of Sorare it is a must to buy the cards to participate “.

What Sorare risks

In addition to the French regulators, it is also our British neighbors who have targeted Sorare. Another market where the company has users. If the authorities preferred to classify the platform as a sports betting platform in September, the impact would be significant.

In France, between gambling, only casinos and sports bets are accepted. Exceptions that require obtaining an approved operator license, such as Betclic or Winamax for sports betting. Such a request could create a waiting period during which Sorare would not have sufficient rights to operate with its current model.

Speaking of model, Sorare investors would certainly see the platform suffer a slowdown in growth in terms of profitability. Despite its impressive valuation, at a time when venture capital is much more selective in its funded projects, valley of death between investment and economic equilibrium could make Sorare fear the worst.

The platform is in the midst of an international expansion phase and was also opening in the United States with the arrival of baseball licenses. Kylian Mbappé and Zinédine Zidane also granted him two important marketing operations, promoting him to certainly very important financial counterparties.

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