UKGC Withholds Sorare Investigation Details

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UKGC Confirms Sorare Enquiry is Ongoing, Cites Risk to Investigation

The UK Gambling Commission (UKGC) has confirmed its enquiry into the fantasy sports and NFT platform Sorare is still active, but has refused to provide any substantive details on its progress or findings. In a response to a Freedom of Information (FOI) request dated 19 July 2023, the regulator stated the matter has "not yet concluded" and that releasing information could prejudice its regulatory functions.

The response also revealed that the Commission holds "no recorded information" detailing a strategy for regulating the wider Web 3 gaming sector, highlighting a significant area of regulatory uncertainty for consumers.

Why This Matters

The UKGC first issued a consumer warning about Sorare in October 2021, stating it was conducting an enquiry to establish whether the platform's services constitute gambling and require a UK operating licence. This latest FOI response confirms that, years later, consumers are still using the platform without a definitive ruling from the regulator.

Without a licence, operators are not subject to the UKGC's stringent rules on consumer protection, fairness, and social responsibility. The Commission's response explicitly warns, "Any consumers who gamble with unlicensed operators are unlikely to receive the protections the Commission requires from its licensees."

Details of the FOI Response

The request sought a full update on the Sorare enquiry, including any decisions made about its status as a gambling product. The UKGC withheld all related information, citing Section 31 of the FOIA, which provides an exemption for information that could harm law enforcement and regulatory activities.

Key findings from the response include:

• Sorare Enquiry Information Withheld: The UKGC refused to provide any update on its enquiry, any actions taken, or its assessment of whether Sorare's services constitute gambling. It argued that disclosure would "prejudice the regulatory functions of the Commission."
• Investigation is Active: In its public interest test, the Commission stated, "this matter has not yet concluded," confirming the enquiry is ongoing.
• No Web 3 Regulatory Policy: In a significant admission, the UKGC confirmed it holds "no recorded information" that explains how it intends to regulate the Web 3 gaming sector. This indicates a lack of a formal, documented strategy for products involving NFTs, cryptocurrency, and blockchain technology.
• "Neither Confirm Nor Deny" on Similar Products: The request also asked for information on UNAGI's "Ultimate Champions" platform. The UKGC issued a "neither confirm nor deny" response, stating that even acknowledging the existence of information could tip off individuals and compromise potential investigations.

An internal review requested by the applicant upheld the Commission's original decision to withhold the information.

Significance for Consumers and the Industry

The UKGC's position underscores the complexity of applying the Gambling Act 2005 to new and emerging technologies. The prolonged nature of the Sorare enquiry, combined with the lack of a formal policy for the Web 3 space, creates a prolonged state of ambiguity.

For consumers, this means that platforms operating in this grey area may lack the essential protections mandated for licensed operators, such as robust age verification, responsible gambling tools, and access to official dispute resolution services. The response serves as a reminder for consumers to exercise caution and understand the risks of using services that have not been formally assessed and licensed by the UK regulator.