FIFA World Cup Ticket System Faces Probe Over Gambling Concerns

Switzerland’s gambling regulator, Gespa, is investigating whether FIFA’s blockchain-based World Cup ticket system constitutes gambling.

As part of the system, fans can buy Right To Buy (RTB) tokens. These tokens give holders the right to purchase tickets for matches if certain criteria are met.

For example, there is a token called “Right to Final: England,” which has value only if England qualifies for the final. If England does not make it to the final, then the token becomes worthless. The token went on sale for $999 and is now sold out.

Holders of the token will still have to pay for the actual ticket, even if England makes it to the final. England has not yet even qualified for the tournament, but it is in a prime position to do so.

In total, 48 teams will compete next summer, with qualification for places taking place in the coming months. The majority of the RTB tokens will end up worthless when teams crash out of qualifying or the tournament itself.

Gespa director Manuel Richard told Bloomberg, “Based on an initial internal assessment, it cannot be ruled out that the offering on collect.fifa.com may be relevant under gambling legislation.”

He added, “Gespa will now proceed with further fact-finding to determine whether regulatory action is required.”

FIFA has already sold tens of thousands of RTB tokens, amounting to over $15 million in revenue for the soccer authority. The Swiss-based organization also partnered with betting company Betano for the last World Cup. Betano was also the betting partner for the Club World Cup this summer and is likely to secure a deal for next year’s tournament.

Convoluted System Cashing in on Fan Hopes

The online system developed for the World Cup, which will take place in the US, Mexico, and Canada next year, seems designed to maximize profit from fans hoping to attend matches.

The digital platform known as FIFA Collect includes RTB tokens as well as digital collectibles. Users can buy packs that contain digital items (e.g., video clips, player cards, historic moments, jerseys, etc.).

These are minted as NFTs on FIFA’s approved blockchain. Some packs include extra rewards, such as limited merchandise, VIP experiences, or can be converted to RTB tokens.

RTB Tokens Trading for Thousands Already

Users can trade the collectibles and RTB tokens on the marketplace. Some of the tokens are already trading for thousands of dollars.

For example, an RTB token for two tickets to the opening match at the Azteca Stadium on June 11 ranges in value from $8,399.25 to $25,000.

In addition to the RTB token, the pack includes an NFT commemorating a goal scored at the 1986 World Cup in Mexico. As a reminder, buyers do not receive actual tickets, but only the opportunity to purchase them at a later date.

Actual tickets for the World Cup final are available for $30,000 on the official resale platform.

FIFA has effectively created a trading platform based on the tournament and ticket sales. Users even receive a $5 welcome bonus upon signing up, similar to what a sportsbook may offer.

What Will Gespa Do?

Gespa has the authority to halt FIFA’s digital platform if it deems the organization is facilitating unregulated betting. Richard said the regulator is legally obligated to notify criminal prosecution authorities if violations are found to have occurred.

However, what that would mean for all the tokens already sold is unclear. If the system is blocked and removed, users holding highly valuable RTB tokens would be understandably frustrated.

It seems unlikely the system will be stopped at this stage. The tokens tied to a team’s progress could be construed as a convoluted form of betting. However, the NFTs and other “collectibles” are similarly risky. Users are gambling that others will see them as valuable in the future.

Fans would be advised to check the terms on FIFA’s site before making any purchases, as there is a high chance that what is being sold holds little actual value.