The securities regulators in Texas and Alabama have blocked Sand Vegas Casino Club from selling NFTs that promise profit sharing from its metaverse platforms.
ETHUSD is down -1.21%
The Cyprus-based casino utilizes part of its profits from the 11,100 Gambler NFT to buy land in Decentraland and Sandbox.
The directive by the regulators is the first of its kind and remains to be seen if it will have a direct impact on the firm’s operations with the location being outside the US.
The NFT holders can share in the profits from the operations. The company projects profits of up to $24,480 from the Gambler NFT and $81,000 per year from the Golden Gambler NFTs.
The regulators allege that Sand Vegas is not regulated as securities despite the profit-sharing aspect. Gambler NFTs have 4200 holders and 624 owners of Golden Gambler NFTs.
Gambler NTFs have a 30-day average price of 0.3293 ETH, equivalent to $1,030, while Golden Gambler NFTs are valued at 1.89 ETH of $5900 on average.