Switzerland’s Gambling Supervisory Authority (GESPA), the regulatory body for gambling in the country, has lodged a complaint against FIFA’s non-fungible token (NFT) platform, FIFA Collect, claiming it operates as an unlicensed gambling provider.
On Friday, GESPA announced the complaint, stating that the platform’s “competitions,” which include user rewards such as airdrop campaigns and challenges, classify as gambling according to current Swiss laws because of the chance involved in obtaining rewards. GESPA remarked:
“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.
From a gambling law perspective, the contested offers are partially lotteries and partially sports betting,” GESPA stated. Switzerland has only two nationally regulated sports gambling providers, Sporttip and Jouez Sport, according to GESPA.
Cointelegraph reached out to FIFA and Modex, the Web3 service provider backing the FIFA Collect platform, but did not receive a reply by the time of publication.
The regulatory complaint underscores the challenges faced by emerging technologies like NFTs and Web3 platforms as regulators navigate how new developments in the digital economy fit within traditional legal frameworks.
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GESPA embarks on investigation into FIFA Collect
GESPA initiated an investigation into FIFA Collect in October regarding its “Right to Buy” NFTs, which grant holders ticket reservation rights for the 2026 FIFA World Cup.
The NFTs allow holders the right, though not the obligation, to purchase a ticket at face value, aimed at circumventing price gouging in secondary markets—a prevalent issue during major sporting events.
World Cup finals reservation NFTs for top football teams, including 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 network, FIFA Collect has introduced several NFT collections since its inception.
However, FIFA has announced plans to transition to its own blockchain, referred to as FIFA blockchain, which is a layer-1 subnet on the Avalanche network.
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