Texas and Alabama Securities Regulators have ordered Sand Vegas Casino Club to stop selling NFTs that offer a percentage of earnings from casinos on Metaverse platforms.
Sand Vegas Casino Club is purchasing land in Decentraland and the Sandbox with some of the proceeds from the 11,100 “Gambler” NFTs.
The NFT holders will be able to share in the profits from the operations. The researchers estimated that the “Gambler” NFTs may bring in up to $24,480 per year, while the higher-end “Golden Gambler” NFTs might bring in up to $81,000 per year.
Despite the profit-sharing scheme as a selling element, authorities in Texas contend that Sand Vegas stated that the NFTs are not regulated as securities.
According to on-chain data, there are presently 4200 Gambler NFT holders and 624 Golden Gambler NFT owners.
The Gambler NFTs have a 30-day average price of 0.3293 ETH ($1030), while the Golden Gambler NFTs have a 30-day average price of 1.89 ETH ($5900), according to data.
Because many metaverse platforms only have a few thousand players at most, Sand Vegas Casino Club is also constructing a normal web-based casino, which it aims to deploy in the summer, according to a published roadmap.
This looks to be a first for the Metaverse, as this directive from regulators. However, because Sand Vegas Casino Club is not situated in the United States, it’s unclear whether this decision would have a significant influence on their activities.