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Swiss Regulator Slams FIFA’s NFT Platform as Illegal Gambling in 2025: What You Need to Know

Swiss Regulator Slams FIFA’s NFT Platform as Illegal Gambling in 2025: What You Need to Know

Author:
C0inX
Published:
2025-10-17 20:09:02
17
1


In a bombshell move, Switzerland’s gambling watchdog has filed a criminal complaint against FIFA’s World Cup-themed NFT platform, alleging it operates as unlicensed gambling. The case centers on FIFA Collect, a blockchain-based platform offering "Right to Buy" tokens tied to match outcomes—a model regulators say ticks all three boxes of gambling: payment, chance, and prize. With tokens reselling for up to $30,000 and $15M already generated in sales, this clash could redefine how sports organizations use blockchain tech. Here’s the full breakdown.

Why Is Switzerland Calling FIFA’s NFT Platform Illegal Gambling?

GESPA (Swiss Gambling Supervisory Authority) dropped the hammer after investigating collect.fifa.com, where users buy NFTs linked to team performances. The regulator found the platform meets Switzerland’s legal definition of gambling: users stake money ($999 per "Right to Buy" token), outcomes depend on chance (whether teams advance), and prizes include World Cup tickets or resale profits. "These offers are partly lotteries, partly sports betting," GESPA stated. Officials particularly flagged the speculative frenzy—tokens tied to eliminated teams crash, while finalist-linked NFTs skyrocketed 2,900% to $30K.

How Does FIFA Collect’s Controversial Token System Work?

FIFA’s platform sells NFTs granting access to purchase World Cup tickets if specific conditions are met. Take the "$999 Right to Buy: England Finals" token—it only activates if England reaches the final. Most tokens will expire worthless given the 48-team tournament’s odds. FIFA claims this system manages ticket demand (23M requests for 3.4M seats in 2022), but regulators argue the secondary market creates a "gambling-like dynamic." The project, developed with Swiss blockchain firm Modex, has already raked in $15M, per TradingView data.

What’s at Stake for FIFA and the Sports Blockchain Industry?

This isn’t just about NFTs—it’s a threat to FIFA’s revenue playbook. Ticketing contributes to its $11B 2023-2026 forecast, and digital sales are a growing slice. The case also sets a precedent for how conditional-access tokens (like those offering VIP experiences or merch discounts) are regulated globally. Remember when NBA Top Shot skirted gambling laws by avoiding cash prizes? FIFA’s model pushes that boundary further. A ruling against FIFA could force leagues to rethink blockchain integrations, especially in Europe where gambling laws are strict.

FIFA’s Defense: Innovation or Exploitation?

FIFA’s CBO Romy Gai pitched the project as "democratizing access" to World Cup memorabilia, comparing NFTs to trading stickers. But critics see a paywall—fans must gamble on team success for ticket access. The Algorand-to-Polygon migration in 2023 expanded offerings, including 2026 World Cup ticket giveaways. "This is about engagement," claims FIFA, but with tokens functionally acting as binary options (team wins = token valuable; loses = worthless), the gambling parallels are hard to ignore.

The Bigger Picture: When Do NFTs Cross into Gambling Territory?

Swiss law isn’t alone in scrutinizing NFT utility. The UK’s Gambling Commission recently warned about "loot box" mechanics in crypto games. The key differentiator? Whether the asset’s value is primarily speculative versus collectible. FIFA’s case is murky because tokens derive worth from real-world events (match outcomes)—a gray zone regulators are rushing to address. As one BTCC analyst noted, "We’re seeing a global reckoning on how blockchain incentives align with consumer protection laws."

What’s Next for FIFA and NFT-Based Ticketing?

Prosecutors will now determine if FIFA violated Article 3 of Switzerland’s Money Gaming Act. Possible outcomes range from fines to platform restructuring. Meanwhile, FIFA pushes forward with its 2026 NFT collection, betting regulators won’t derail the $1.7B sports NFT market (CoinMarketCap data). But with the EU’s MiCA regulations looming, projects blending gaming and finance face tighter rules. "This case could be the canary in the coal mine," says a crypto compliance officer who requested anonymity.

Frequently Asked Questions

What exactly did FIFA’s NFT platform do wrong?

Swiss regulators allege FIFA Collect operates as unlicensed gambling by requiring monetary stakes, offering prizes tied to chance events (team advancement), and enabling speculative trading.

How much money has FIFA made from these NFTs?

Approximately $15 million has been generated from "Right to Buy" token sales as of October 2025, according to industry reports.

Could this affect other sports NFT projects?

Yes—the case may establish legal precedents for how conditional-access tokens (e.g., those granting perks based on game outcomes) are classified under gambling laws globally.

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