UKGC: Sorare Inquiry Still Unresolved
FOI request reveals regulator's investigation into the NFT fantasy sports platform, launched in 2021, has 'not yet concluded'.
A Freedom of Information request has revealed the UK Gambling Commission's inquiry into Sorare is still ongoing, nearly two years after it began. The regulator confirmed the platform is unlicensed but refused to disclose details, citing potential harm to its investigation.
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A Freedom of Information (FOI) request has revealed that the UK Gambling Commission's (UKGC) inquiry into the popular NFT-based fantasy football platform Sorare remains ongoing, nearly two years after it was first announced.
In response to a request dated 27 July 2023, the regulator confirmed that the matter has "not yet concluded" but refused to disclose details of its investigation, citing exemptions that protect its regulatory functions.
Context: A Two-Year Wait for Clarity
On 16 October 2021, the UKGC issued a consumer information notice stating it was conducting enquiries into Sorare to establish whether the platform's services constitute gambling and require a UK licence. The notice warned consumers that, as Sorare is not licensed, any activity on the site falls outside the UK's gambling regulations and consumer protection framework.
With no public updates since 2021, the recent FOI request sought to clarify the platform's current regulatory status and gain insight into the Commission's decision-making process. The lack of a definitive ruling leaves UK consumers operating in a grey area, without the typical safeguards provided by licensed operators, such as formal dispute resolution and responsible gambling requirements.
Details of the FOI Response
The UKGC's response confirmed two key points:
- Sorare remains unlicensed: The Commission reiterated that Sorare.com is not licensed to operate in Great Britain. Details of all licensed operators can be found on the UKGC's public register.
- The inquiry is not finished: The Commission refused to provide internal communications or details on the outcome of its enquiries, stating that the matter has "not yet concluded."
To justify withholding the information, the UKGC cited Section 31 of the Freedom of Information Act, which provides an exemption for information that would likely prejudice law enforcement and regulatory functions. The Commission argued that disclosing details about an active investigation could:
- Hinder its ability to conduct the investigation effectively.
- Enable those being investigated to avoid detection or scrutiny.
- Undermine the trust required for operators to voluntarily provide information.
An internal review requested by the applicant on 14 September 2023 upheld the Commission's original decision. The review concluded that the public interest in protecting the integrity of its regulatory processes currently outweighs the public interest in transparency regarding this specific, ongoing case.
Significance for Consumers
The disclosure confirms that the regulatory status of Sorare in the UK is still undecided. For the platform's substantial UK user base, this means the uncertainty continues. While the UKGC is actively assessing the product, consumers using the platform do so without the protections afforded by a UKGC licence.
The case highlights the challenge that novel products combining elements of gaming, collecting (NFTs), and prize competitions pose to existing gambling legislation. The Commission's refusal to provide a timeline or details indicates that a final decision on whether Sorare's model constitutes gambling under the Gambling Act 2005 is not imminent.