FIFA Faces Swiss Gambling Complaint Over NFT Competitions on Avalanche

FIFA’s venture into NFTs has come under scrutiny as Switzerland’s gambling authority, Gespa, filed a criminal complaint alleging that the football organization’s NFT-based competitions may constitute unregistered gambling. The complaint claims that FIFA’s NFT challenges and drops, which require monetary participation and offer digital collectibles with potential monetary value, resemble lotteries or sports betting under Swiss law.

Gespa stated that “various competitions related to NFT collectibles are offered on FIFA platforms… participation is only possible with a monetary stake, with monetary benefits to be won.” This implies that users are engaging in chance-based activities rather than straightforward purchases. The regulator emphasized that such mechanics fall under gambling laws, given the element of chance and potential profit involved.

Interestingly, Gespa’s complaint is non-binding and spans just one page. The regulator clarified that it will not lead a legal case but will cooperate with law enforcement if investigations proceed. It also indicated that the final decision on whether FIFA’s NFT operations violate gambling laws lies with Swiss prosecutors.

The issue comes shortly after FIFA transitioned its NFT partnership from Algorand to Avalanche, a move that reportedly spurred greater user engagement and introduced new distribution mechanics. This shift may have caught the regulator’s attention, as Gespa claimed it only recently discovered FIFA’s NFT platform and its challenge-based system for earning rewards.

While this complaint could lead to further legal scrutiny, FIFA may avoid litigation by revising its NFT distribution model or negotiating with authorities. For now, FIFA’s blockchain ambitions continue to blur the line between digital collectibles and regulated betting — an area that regulators worldwide are increasingly watching.