OpenSea Suspends Trading of Sands Vegas Casino Club NFTs

NFT marketplace OpenSea has suspended the trading of “Gambling Apes” non-fungible tokens from the Sand Vegas Casino Club after regulators in Texas and Alabama ordered trading to halt as they were categorized as unregistered securities.

The Sand Vegas Casino Club in Cyprus stated that the Gambling Apes NFT holders can share the profits of the casinos.
BlackyJefferson21 a community leader for the project updated us on its discord. He said that the team is working closely with lawyers and had reached out in “good faith” to Alabama and Texas to discuss the next steps.
Another admin stated that while the team plans to comply with all laws, regulations, it “was not subject to any registration obligations and was not contacted by any government regarding registration requirements.”
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.
“It seems that the primary issue with the ‘Gamblers’ NFTs was the explicit expectation of profit sharing. This appears to have run afoul the terms of the [Securities and Exchange Commission’s] Howey test Christopher LaVigne, a partner of the international law firm Withers’ litigation and arbitration team, said:
LaVigne stated that if an NFT marketplace provides a trading platform to securities, the SEC will most likely conclude that the marketplace operates as an unlicensed market.
OpenSea has not responded to a request by press time for comment.
LooksRare now lists the NFTs and they continue to trade. according to data from Etherscan.
The project’s Twitter profile has been removed, and many of the listed team members haven’t tweeted for months.
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