UKGC Stays Silent on Active Sorare Investigation

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Regulator Confirms Ongoing Enquiry by Withholding Information

The UK Gambling Commission (UKGC) has confirmed its enquiry into the fantasy sports and NFT platform Sorare is still active, nearly two years after it first issued a consumer warning. In a response to a Freedom of Information (FOI) request dated 19 July 2023, the regulator withheld all substantive information about the case, stating that disclosure would likely prejudice its ability to carry out its regulatory functions.

This refusal to release details, while not providing a conclusion, signals to consumers that the question of whether Sorare's services constitute gambling under UK law remains officially unresolved. The platform continues to operate in the UK without a gambling licence.

Context: The Unresolved Status of Sorare

In October 2021, the UKGC published a notice stating it was conducting enquiries into Sorare to assess whether the platform required a UK gambling licence. The regulator advised consumers to consider this information before using the service, as it was not licensed and therefore lacked the consumer protections mandated by the Gambling Act 2005.

The recent FOI request sought an update on these enquiries, including any decisions made about Sorare's legal status and the need for an operating licence. The UKGC's response indicates that the matter is far from settled.

Details of the FOI Response

The Commission denied the request for information by invoking Section 31 of the Freedom of Information Act, which relates to law enforcement and regulatory activities. The UKGC argued that releasing information about the ongoing enquiry could:

• Hinder its ability to conduct the investigation.
• Allow those being investigated to avoid detection or alter behaviour.
• Undermine the trust required for operators to voluntarily provide information.

In its public interest test, the UKGC acknowledged the public's right to transparency but concluded that the need to protect the integrity of its regulatory process was greater. Crucially, the response states, "the public interest is better served by withholding the information... as this matter has not yet concluded."

Notably, the FOI request also asked for any documents detailing how the Commission regulates the "Web 3 gaming sector." The UKGC responded that it held "no recorded information" on this topic, suggesting a formal, documented strategy for this emerging area is not yet in place.

Significance for Consumers

The UKGC's response confirms that the legal and regulatory ambiguity surrounding Sorare persists. For consumers, this means the platform operates outside the UK's licensed gambling framework, which includes requirements for social responsibility tools, fairness checks, and access to formal dispute resolution services.

The regulator's explicit warning remains relevant: "Any consumers who gamble with unlicensed operators are unlikely to receive the protections the Commission requires from its licensees."

The prolonged nature of the enquiry highlights the challenge regulators face in applying existing laws to new and complex blockchain-based products that blur the lines between collecting, gaming, and gambling. Until the Commission concludes its investigation and makes a public statement, consumers on the platform operate in an unregulated space with limited recourse.