Switzerland's gaming watchdog has filed a formal complaint against FIFA's NFT platform, accusing it of operating an unlicensed gaming service. The move illustrates the growing regulatory pressure on digital collectibles and Web3 projects, as authorities continue to seek to adapt traditional gaming laws to blockchain-based reward systems.
In brief
- GESPA claims that FIFA Collect competitions are based on rewards linked to chance, thus equating them to gambling under Swiss law.
- The regulator maintains that users pay to participate in events with random draws, similar to lotteries or sports betting.
- FIFA Collect’s “Right to Buy” NFTs, sold for $999, would, according to GESPA, include elements of chance and monetary gain.
- The investigation follows the migration of FIFA's NFT platform to Avalanche, which introduces new mechanics close to the lottery.
GESPA says FIFA Collect NFTs cross gambling line
Switzerland's federal gaming regulator, GESPA, has filed a complaint against FIFA's non-fungible token (NFT) platform, FIFA Collect, which it accuses of operating as an unauthorized gaming service.
GESPA considers that certain competitions and reward programs offered on the platform include elements of chance which, according to Swiss law, assimilate them to gambling. According to the regulator, participation in these events requires the payment of a stake, while the prizes are awarded by drawing lots or similar processes.
Participation in competitions is only possible through a monetary stake, with financial gains at stake. Winning a prize depends on chance or similar procedures.
GESPA
The regulator adds that these activities are similar to lotteries and sports betting – two categories strictly reserved, in Switzerland, for approved Sporttip and Jouez Sport operators.
Migration from Collect to Avalanche increases regulatory pressure
GESPA opened an investigation into FIFA Collect in October, targeting in particular its “Right to Purchase” NFTs, which offered their holders the possibility of acquiring tickets for the World Cup at their face value. These NFTs, associated with major selections like Argentina, Spain, France, England and Brazil, were offered at $999 each and are now sold out, according to official data from the platform.
Initially launched in 2022 on the Algorand blockchain, the platform has since announced its intention to migrate to a dedicated infrastructure, built as a subnet on Avalanche. This change would have boosted FIFA Collect activity and introduced new distribution mechanisms inspired by lottery systems, attracting the attention of the authorities.
The complaint filed by GESPA marks a new episode in the standoff between digital collectibles and traditional laws governing gambling. The regulator said it had forwarded the file to law enforcement, responsible for determining whether FIFA's NFT activities violate Swiss regulations.
Although GESPA has not taken a position beyond filing its complaint, it has indicated that it is willing to collaborate with investigators. For their part, several observers believe that FIFA could seek to adapt its NFT distribution model or reach an agreement with regulators in order to avoid any legal action.
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