Cryptocurrency based fantasy football game Sorare, an official Premier League partner, has been ordered to appear in court next week on the charge of providing unlicensed gambling facilities to British consumers.
The charges have been brought by the Gambling Commission, which first opened an investigation into Sorare in October 2021, and could lead to unlimited fines and even prison sentences if found to be proven.
The hearing is due to take place at Birmingham Magistrates’ Court on Friday 4 October.
Sorare is a French-based company which rose to prominence during the crypto boom by offering digital trading cards of footballers which can be used in fantasy games. The value of the cards fluctuates according to how the players perform.
It became an official partner of the Premier League in January 2023 despite the Gambling Commission’s investigation still being in progress.
Premier League chiefs said they had undertaken thorough due diligence before signing the four-year agreement with Sorare. As part of the deal, the platform also launched a free version of its fantasy football game.
The Gambling Commission’s charges threaten to embarrass the Premier League, which deliberated for months about entering the NFT and digital asset space amid scepticism from supporter groups.
At the time of the partnership being announced, the Football Supporters’ Association said: “Supporters have repeatedly raised concerns about the proliferation of crypto partnerships in the game and the announcement from the Premier League’s is no exception.
“Cryptoassets are currently under-regulated and lack protection for the consumer buying them. Clubs, leagues and players promoting such schemes have frequently not undertaken the necessary due diligence, putting their own fans at financial risk.
“We will continue to work with the Government, Parliament and other interested parties to deliver greater protections for football supporters.”
The platform also has partnerships with the German Bundesliga, Italy’s Serie A, LaLiga in Spain, France’s Ligue 1 and has also branched out into NBA basketball and Major League Baseball.
Its ambassadors include Real Madrid and France superstar Kylian Mbappe, who also holds equity in the business. Other backers include Lionel Messi and Serena Williams.
A spokesperson for Sorare said: “We are aware of the claims made by the Gambling Commission and have instructed our UK counsel to challenge them.
“We firmly deny any claims that Sorare is a gambling product under UK laws. The Commission has misunderstood our business and wrongly determined that gambling laws apply to Sorare. We cannot comment further whilst legal proceedings are underway.”