Softbank-Backed Sorare Faces Scrutiny From UK, Swiss Gambling Regulators
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Sorare, a blockchain-based fantasy soccer game based on nonfungible tokens, is facing scrutiny from gambling regulators in the U.K. and Switzerland shortly after finalizing a $680 million funding round led by SoftBank Corp.
The U.K. Gambling Commission recently said that it is carrying out enquiries into the company to establish whether Sorare requires an operating license, or whether its services don't constitute gambling.
Meanwhile, the Swiss Gambling Supervisory Authority last week added the company's site to its list of blocked "gambling sites." The regulator blocks foreign-based companies from the Swiss market.
France-based Sorare has argued that its game doesn't constitute gambling but instead sells nonfungible tokens, which give access to a free fantasy soccer game.
"When a product with a nascent technology becomes successful, such as Sorare's digital collectable cards and game, it is normal and expected to receive regulatory questions," Sorare said in a statement late on Monday.
"We are very confident Sorare does not offer any forms of regulated gambling. This has been confirmed by expert legal opinions at every stage since the company was founded, including during a number of fundraising rounds," it added.
The company declined to comment on any measures it would put in place for Swiss users blocked from using its services.
In September, Sorare said the latest funding round led by SoftBank valued it at $4.3 billion, making it one of the most valuable private-technology startups in France. It has struck a number of partnerships with soccer leagues in Europe and has said it intends to expand to the U.S.
Write to Adam Clark at adam.clark@wsj.com
