Fantasy sports platform Sorare is set to face a legal challenge from the UK Gambling Commission next week, the Financial Times reports. The Commission alleges that the company has been providing unlicensed gambling facilities to its users, potentially putting them at risk.

Sorare, which allows users to collect and trade digital cards of real-life footballers, has faced scrutiny in several countries over its business model. Critics argue that the platform’s “play-to-earn” features, which allow users to win prizes based on the performance of their virtual teams, constitute gambling.

The UK Gambling Commission’s legal action comes at a crucial time for Sorare, which has been expanding rapidly and attracting significant investment. The platform boasts millions of users worldwide and has secured partnerships with major football clubs like Real Madrid and Bayern Munich.

A spokesperson for Sorare declined to comment on the matter.

The outcome of the court case could have significant implications for the future of fantasy sports platforms like Sorare. If the UK Gambling Commission succeeds in its claim, it could force the company to obtain a gambling license and comply with stricter regulations. This could impact Sorare’s business model and its ability to operate in the UK market.

The case highlights the ongoing debate around the legal status of fantasy sports platforms and the potential for regulation in this rapidly evolving industry. As the line between entertainment and gambling becomes increasingly blurred, regulatory bodies around the world are grappling with how to effectively oversee these platforms and protect consumers.