LDP Web3PT Creates Recommendations for Expanding Adoption of NFTs in the Sports Industry

Promoting the use of NFTs in the sports industry

It was revealed on the 6th that web3PT, the Liberal Democratic Party’s Digital Society Promotion Headquarters, has compiled recommendations on the use of NFTs (non-fungible tokens) in the sports industry.

Regarding the use of NFTs in the sports industry, including fantasy sports, which are gaining popularity overseas, the aim is to clarify the regulatory environment so as not to violate Japan’s gambling crimes, and to encourage companies to enter.

The Liberal Democratic Party’s web3 (decentralized web) project team plans to include it in the upcoming web3 policy white paper.In addition, we support the establishment of industry groups in the content industry that utilize NFTs, and we are asking them to work on the formulation of guidelines through public-private partnerships.

Fantasy Sports is an online game where you create your own team using data from professional athletes and compete against other players based on the performance of real players. Some tournaments and leagues offer prize money, and players may pay an entry fee to participate in the tournament.

In the United States, fantasy sports are regarded as “skill games” rather than luck, and each state has developed a regulatory environment. Sports leagues such as the major leagues and the NFL regard fantasy sports as a means of acquiring and expanding fans, and the four major sports leagues have invested in related companies and entered into partnership agreements.

On the other hand, in Japan, providing prize money from participation fees is considered a gambling crime, and it has been recommended that sponsors provide prize money and prizes. In addition, if a Japanese sports organization provides a license to an overseas business operator, and it is clear that the license is used for gambling, it may fall under the crime of abetting gambling. .

connection:The Liberal Democratic Party Web3PT aims for an urgent proposal on the virtual currency tax system, such as “subject to separate taxation at a tax rate of 20%”

NFT and fantasy sports

NFTs have been seen as a good match for fantasy sports. As a unique digital asset that can be verified and traded on the blockchain platform, athletes’ digital cards and collectibles can be created and sold or exchanged on various marketplaces.

Representative examples of fantasy sports that incorporate NFTs include Sorare (a digital card issuing and trading platform with an official license for football clubs), NBA Top Shot (officially licensed by the NBA), and Ultimate NFT (officially licensed by the NFL). . According to Sorare’s official website, it has over 600,000 registered users and over 150,000 monthly active traders.

connection:Sorare signs a multi-year partnership with the English Premier League, the pinnacle of soccer

The LDP Digital Society Promotion Headquarters Web3 Project Team (former NFT Policy Review PT) published the “NFT White Paper,” a proposal document announced in March 2010.

The second set of web3 policy proposals includes proposals on the use of NFTs in the sports field, as well as proposals to enable investment in startups that issue crypto assets (virtual currencies). Until now, there have been concerns about the outflow of cryptocurrency-related startups overseas due to restrictions on investment through LPS (Limited Partnership Schemes).

connection:LDP Web3PT to draft second NFT white paper = report

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