Slowdown for Sorare in France? The Gaming Authority would like to frame the start-up’s activity

Should Sorare be considered a game of chance and, as such, be subject to the same obligations as sports betting sites, among others? This is the question posed by the National Gaming Authority.

Will Sorare, the French fantasy football start-up that embraced the NFT card model, have to accept new rules of the game? It is likely, as the National Gaming Authority looks into her case, believing it could be considered a game of chance and fall under sports betting legislation.

This would obviously be a blow given that Sorare, already valued at 4.2 billion euros, grows, simultaneously navigating on the interest in cryptocurrencies and non-fungible tokens. However, the risk is real for the company and its 100 employees, and decisions limiting its business 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 opened in Great Britain.

A crucial decision for Sorare’s future

It is in this context that the Sorare leaders must meet the Anj agents in September. Among these, Nicolas Julia, co-founder, believes that if it is undoubtedly necessary to supervise the activity of his company, the rules to which it must be subject should not be those of gambling. Logic: seeing Sorare come under this legislation would greatly upset its development, forcing the platform to carry out more checks and verifications. The company would therefore have no choice but to seek the approval of the ANJ, verify the identity and age of users, provide an answer to addiction phenomena and pay more taxes.

For Nicolas Julia, Sorare constitutes “a new innovative model”based on “an emerging technology”who “does not fit into any existing framework”. However, some characteristics of its activity could correspond to the definition of game formulated by the Internal Security Code. It is truly a speculative game that requires investment and dangles earnings. Recall that users buy cards from professional players in the form of NFTs, the value of which varies according to various parameters ranging from their rarity to the sports performance of said players in real life. And although there is no payment obligation to access Sorare, the heart of the game revolves around paying for cards.

Asked by The worldJulien Pillot, a professor of digital economics, believes Sorare’s line of defense could hold up and that only part of his business resembles gambling.

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