FIFA's World Cup NFT platform faces criminal complaint from Swiss gambling regulator

Geldspielaufsicht, the Swiss Gambling Supervisory Authority or GESPA, has filed a criminal complaint with prosecutors over FIFA's World Cup-themed NFT platform, alleging potential violations of national gambling laws.

Headquartered in Zurich, FIFA — the Fédération Internationale de Football Association — is the global governing body for football (also known as soccer).

In a statement on Friday, GESPA said it became aware of the online platform collect.fifa.com (FIFA Collect) in early October, where various competitions such as drops and challenges involving so-called collectibles are offered in the form of non-fungible tokens.

Following an investigation, the regulator claimed that FIFA Collect is providing gambling services not licensed in Switzerland and is therefore operating illegally. Participation in competitions on the platform requires a monetary stake, with cash prizes available to be won, it explained, and the outcome for participants depends on random draws or similar chance-based procedures.

From a gambling law perspective, GESPA determined that the offerings constitute, in part, lotteries and, in part, sports betting under the Right to Final provision. In accordance with its legal obligations under the Federal Act on Gambling, GESPA notified authorities of the violation.

The final determination of any criminal liability rests with the law enforcement authorities. FIFA did not immediately return a request for comment from The Block.

FIFA's World Cup NFT project

FIFA unveiled the digital collectibles project marking notable soccer moments ahead of the World Cup in 2022, initially launching on Algorand before migrating to Polygon in 2023, with a new collection offering early adopters the chance to win 2026 World Cup tickets.

"This makes FIFA collectibles available to any football fan, democratizing the ability to own a part of the FIFA World Cup," FIFA Chief Business Officer Romy Gai said at the time. "Just like sports memorabilia and stickers, this is an accessible opportunity for fans around the world to engage with their favorite players, moments and more on new platforms."

Earlier this year, FIFA then announced plans to launch its own EVM-compatible blockchain leveraging the Avalanche tech stack, with its NFTs to migrate to the new network dubbed "FIFA Blockchain."