Hurts to Develop NFT Fantasy Game at French Gambling Authority’s Request – Ledger Insights
At the request of The French National Gambling Authority (ANJ), NFT fantasy gaming platform Hurt has agreed to adapt its blockchain-enabled NFT games by March 31, 2023.
The news comes after extensive discussions since March 2021 about the ANJ’s concerns about the lack of regulation for web3-enabled gaming offerings such as Sorare’s. ANJ wants to protect the public from excessive gambling, protect minors and ensure anti-money laundering compliance.
Powered by blockchain technology, Sorare’s fantasy football game allows players to buy, sell and trade virtual teams represented by digital player cards. The NFTs are priced in ETH, but can be bought and sold with fiat or cryptocurrencies. The game itself is free, as are some regular cards that can be used in certain games but are worth nothing financially. But the more attractive NFT cards for players can be very expensive. Buying NFTs for a decent quality fantasy football team can easily cost a player hundreds of Euros.
The French web3 startup has seen tremendous growth since launching in 2018, having raised $680 million in Series B financing and collaborate with over 300 sports teams and organisations, including LaLiga, The Bundesligaand Series A in football as well as NBA and MLB.
The solution proposed by Sorare will consist of changing the offer of free access to games to take effect within the agreed timeframe. In the meantime, ANJ will implement controls to ensure compliance with Sorare before 31 March. Failure to meet the deadline will result in ANJ exercising its regulatory powers. It also plans to have its regulations updated to take account of web3 activities.
In response to ANJ’s announcement, the gaming company said in a statement, “Sorare has decided, at the request of the Autorité Nationale des Jeux (ANJ), to temporarily change its offer by opening up new gaming opportunities for free users. This development is part of the company’s roadmap for to build an inclusive ecosystem.”
It continued: “To make the development of these innovations possible in France, ANJ agrees with the importance of building a long-term regulatory framework adapted to this new situation. Sorare shares this urgent need and is committed to working with all stakeholders, including ANJ, to to define this new framework.”
Since Sorare is one of the pioneers of this innovation in Europe, ANJ is not the only regulator knocking on Sorare’s doors. Last year was UK Gambling Commission issued a notice that Sorare is not licensed by the commission and began an investigation. However, the commission has since remained silent on the matter.
