UKGC Silent on Sorare Enquiry Status
Regulator refuses to confirm or deny outcome of investigation into NFT fantasy football platform, citing law enforcement exemptions.
The UK Gambling Commission has refused to disclose the status of its 2021 enquiry into Sorare. Citing law enforcement exemptions, the regulator leaves consumers without clarity on whether the NFT platform is considered gambling.
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Regulator Withholds Outcome of Sorare Investigation
The UK Gambling Commission (UKGC) has refused to confirm or deny the status or outcome of its enquiry into the NFT-based fantasy football platform, Sorare. The response, obtained through a Freedom of Information (FOI) request, leaves consumers in the same state of uncertainty that prompted the UKGC's initial warning over two years ago.
On 8 October 2021, the Commission announced it was “carrying out enquiries into the company to establish whether Sorare.com requires an operating licence or whether the services it provides do not constitute gambling.”
An FOI request dated 25 February 2023 sought to clarify the results of this enquiry. The requester stated they needed the information to make an informed decision about investing money in the platform.
Why the Information Was Withheld
The UKGC refused to provide the requested details, invoking Section 31(3) of the Freedom of Information Act, which relates to law enforcement. This exemption allows a public authority to neither confirm nor deny whether it holds information if doing so would be likely to prejudice its regulatory and investigative functions.
In its response, the Commission argued that confirming or denying the existence of an investigation could:
- Alert individuals or companies, giving them an opportunity to alter behaviour or evade detection.
- Discourage stakeholders from sharing sensitive information with the regulator in the future.
- Prejudice the outcome of any ongoing or future investigations.
The requester filed for an internal review, arguing that the lack of communication left consumers in “limbo” and that transparency was in the public interest. However, the UKGC upheld its original decision, stating that the potential harm to its regulatory functions outweighed the public interest in disclosure at this time.
What This Means for Consumers
The Commission’s refusal to comment leaves the regulatory status of Sorare in the UK undefined. While the regulator will not confirm if its enquiry is concluded, ongoing, or dropped, it did state a key fact in its response: “as of the date of this email, Sorare remains unlicenced by the Gambling Commission.”
This means that UK consumers using the platform are not protected by the UKGC's Licence Conditions and Codes of Practice (LCCP), which licensed operators must adhere to. The UKGC advises that “any consumers who gamble with unlicensed operators are unlikely to receive the protections the Commission requires from its licensees.”
Ultimately, the “neither confirm nor deny” response prolongs the uncertainty for UK users. The Commission has stated that if and when a formal regulatory decision is made, it will ordinarily be published in full. Until then, consumers must decide for themselves whether to engage with a platform that operates in this regulatory grey area.