“What happens in the Metaverse, does not stay in the Metaverse,” says Texas Securities Commissioner
Cyprus-based Sand Vegas Casino Club, not to be confused with Sheldon Adelson’s Las Vegas Sands, has been ordered by securities regulators in two U.S. states to stop selling NFTs that promise a cut of profits from casinos on Metaverse platforms.
Sand Vegas Casino Club is using part of the proceeds from the 11,100 “Gambler” NFTs to purchase land in Decentraland and the Sandbox.
Holders of the NFT can participate in profit sharing from the operations. The team forecasted proceeds of up to $24,480 from the “Gambler” NFTs and up to $81,000 per year from the higher-end “Golden Gambler” NFTs.
Authorities in Texas allege that Sand Vegas said the NFTs are not regulated as securities, despite the profit-sharing model as a selling point.
On-chain data shows that there are currently 4200 holders of the Gambler NFTs and 624 owners of the Golden Gambler NFTs.
Data shows that the Gambler NFTs have a 30-day average price of 0.3293 ETH, or $1030 while the Golden Gambler NFTs have an average price of 1.89 ETH or $5900.
Sand Vegas Casino Club is also developing a regular web-based casino, which it plans to launch in the summer according to a published roadmap as many metaverse platforms only have a few thousand users at most.
This order from regulators appears to be a first for the Metaverse. But as Sand Vegas Casino Club is not based in the US, it’s unclear if this order will actually have any material impact on their operations.