Securities Regulators block sales of "Metaverse" Casino NFTs
"What happens in the Metaverse, does not stay in the Metaverse", says Texas Securities Commissioner.
The Sand Vegas Casino Club has been ordered by the securities regulators in two U.S. states to stop selling NFTs. Those NFTs promise a cut of profits from casinos on Metaverse platforms.
Sand Vegas Casino Club is buying land in Decentraland and the Sandbox with the part of the profits from the 11,100 "Gambler" NFTs.
The holders of the NFTs are promised a share of profits from the operations. The casino forecasted proceeds of up to $25,000 from the "Gambler" NFTs and up to $81,000 per year from the higher-end "Golden Gambler" NFTs.
Since the NFTs are not regulated as securities, despite the profit sharing model as a selling point the authorities in Texas stepped in.
Currently, there are 4,200 holders of the "Gambler" NFTs and 624 owners of the "Golden Gambler" NFTs.
This order from regulators is the first of the Metaverse. Since the Sand Vegas Casino Club is based in Cyprus, it's not clear if this order will have any material impact on their business.
