Sorare Carves Out Unique Entry Method for France Due to NFT Regulations

Web3 fantasy sports company Sorare is introducing an alternate entry method for players based in France to abide by the country’s existing regulations, pending the implementation of a new regulatory framework surrounding in-game assets and non-fungible tokens (NFTs).

Sorare has agreed to a temporary solution with the French National Gaming Authority (ANJ) that creates an optional alternative method of entry for players based in France. Sorare said in a blog post that the solution is short-term while they continue to develop their long-term roadmap amid ongoing regulatory discussions. The temporary solution is currently live for its flagship category Sorare: Football and will roll out for Sorare: MLB on May 26, 2023 and finally for Sorare: NBA in the fall.

The news comes after the French government announces plans for a bill that will more robustly regulate trading of in-game assets. However, the current framework does not support games such as Sorare, leading the company to find ways to abide by the rules in the meantime.

"This development is part of Sorare’s roadmap to build an inclusive ecosystem uniting tens of millions of sports fans, and support its mission to bring these fans closer to the players, teams and leagues they love," a Sorare spokesperson told CoinDesk. "It does not impact the structure of Sorare’s core game or competition, or its cards.”

While the new entry method will allow France-based players who don’t own NFTs to access Sorare tournaments, it comes with a set of restrictions. Players in France who choose to play with this alternative method need to have their phone number verified and to submit a proof of residence. After providing this, a team of randomly generated non-blockchain cards will be allocated to them and submitted into eligible competitions by Sorare. Users will not be able to simultaneously submit another team made up of NFT-based cards in the game week.

Sorare has previously faced pressures from French authorities to alter its rules due to gambling regulations within the country. In November, the French Gaming Authority released a statement asking for regulators to better analyze Web3 gaming, leading Sorare to open greater up free access to its game to appease the ANJ.

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UPDATE (May 25, 13:25 UTC): Updated to reflect the new entry method is optional and players with NFTs can continue to play as before.