State securities regulators in Texas, New Jersey, Kentucky, and Alabama issued orders.
Slotie runs gambling games in more than 150 different online casinos.
State securities agencies in four jurisdictions have joined forces to accuse a metaverse casino of breaking the law. By offering for sale NFTs that are considered securities.
Slotie NFT, a virtual gambling entity based in Tbilisi, Georgia, claims to be “the largest and fastest growing online casino network on the blockchain.” But on Thursday, state securities regulators in Texas, New Jersey, Kentucky, and Alabama issued emergency cease-and-desist orders against the company.
Claim of NFTs as Securities
Slotie runs gambling games in more than 150 different online casinos. And the company offers NFTs that purport to provide buyers an ownership stake in those establishments. Along with passive stake in the company’s gaming income. Slotie released 10,000 NFTs, with the rarer ones supposedly entitling their holders to a larger portion of the casino’s profits. A huge number of NFT initiatives on the market currently provide holders with the same or comparable services and revenue-sharing benefits.
It was determined by state authorities that the NFTs were unregistered securities issued in contravention of state law. Four states have sought orders requiring Slotie to immediately stop selling its NFTs.
If Slotie doesn’t comply with the instructions by the end of the 30-day period, its owners may face two to ten years in prison in addition to penalties. Meanwhile, the gaming corporation hasn’t publicly addressed the allegations and is even more adamant about its supposedly unlawful operations on Twitter today.
The move is being made at a time when tensions between U.S regulators and NFTs are at an all-time high. Although authorities have been notoriously tight-lipped about their intentions to treat NFTs as securities, recent events suggest that this might soon change.