Sorare recently updated its product roadmap to comply with the French National Gaming Authority’s regulations. The update allows free-play access to fantasy sports leagues for players in France. The company’s decision to make this change is a response to the regulatory pressure it has faced from the ANJ for over a year.
Sorare operates by issuing virtual player cards as NFTs, which can be purchased through the Ethereum platform. The value of these cards fluctuates based on the players’ real-life performances. ANJ has required Sorare to provide enhanced access to its free play model and equal winning opportunities for all players, regardless of whether they pay to play or not. Failure to comply could have resulted in Sorare being blocked by the ANJ.
The new model allows French players to participate in tournaments without purchasing NFTs or blockchain cards. Existing account holders can choose to play with their cards or in free play mode. However, it is still unclear whether players with existing accounts will have the option to play without blockchain cards.
The ANJ has not yet validated Sorare’s new measures and will review them to ensure compliance with regulatory criteria. The French government is also working on establishing regulations for Web3 companies like Sorare, which operate games with exchangeable digital objects. These companies would not require a license from the ANJ but would be subject to a 20% VAT tax on digital goods sales.
Sorare has three million registered customers worldwide and has generated approximately $300 million in sales over the past year. The company’s future will depend on the ANJ’s approval of its new freeplay set up in France and the final regulatory framework established for companies offering games with exchangeable digital objects.
Source: Medium
