The Swiss Gambling Supervisory Authority (GESPA) has filed a complaint against FIFA’s NFT platform, FIFA Collect, claiming it operates as an unlicensed gambling entity.
GESPA announced the complaint on Friday, asserting that the platform’s “competitions,” which include user rewards like airdrops and challenges, classify as gambling given the chance element in winning rewards. GESPA stated:
“Participation in the competitions is only possible in exchange for a monetary stake, with monetary benefits to be won. Whether participants win a prize depends on random draws or similar procedures.
According to GESPA, the contested offers blend elements of lotteries and sports betting. The only two nationally regulated sports gambling providers in Switzerland are Sporttip and Jouez Sport, as stated by GESPA.
Cointelegraph reached out to FIFA and Modex, the Web3 service provider for FIFA Collect, but received no response by publication time.
This regulatory complaint underscores the challenges that emerging technologies like NFTs and Web3 often face within existing legal frameworks as regulators evaluate their role in the digital economy.
Related: NFT markets rebound after $1.2B wipeout in Friday’s crypto crash
GESPA probes FIFA Collect
GESPA initiated its investigation into FIFA Collect in October regarding its “Right to Buy” NFTs, which provide the holder ticket reservation rights for the 2026 FIFA World Cup.
These NFTs allow holders the right, but not the obligation, to purchase a ticket at market value, preventing price gouging on secondary markets, a frequent issue at large sporting events.
Reservation NFTs for World Cup finals from prominent teams such as Argentina, Spain, France, England, and Brazil were priced at $999 and have all sold out, data from FIFA Collect reveals.
Launched in 2022 on the Algorand layer-1 blockchain, FIFA Collect has released various NFT collections since its inception.
However, FIFA has announced plans to transition to its own blockchain, known as FIFA blockchain, a layer-1 subnet within the Avalanche network.
Magazine: MapleStory apologizes for cheaters, Tokyo Beast blows up in Japan, FIFA Rivals: Web3 Gamer
