The NFTs entitled holders to various benefits, including a pro rata share of future profits from the casinos, along with other perks such as free entry into weekly tournaments, access to exclusive events, and guaranteed entry into a monthly lottery that included rewards such as airdrops, cash, iPhones and MacBooks, and Tesla automobiles. Of the Gambler NFTs, 334 were reserved for members of the team developing the Sand Vegas Casino Club, and for marketing the casinos and awarding prizes to virtual gamblers.
In December 2021, the founders of the Sand Vegas Casino Club began offering 11,111 “Gambler” NFTs and 1,111 higher-end “Golden Gambler” NFTs for sale through the OpenSea NFT marketplace in order to fund and build virtual casinos accessible through both the Internet and various metaverses. These developments highlight how the manner in which NFTs are sold and promoted can render them securities. However, state laws are important, as well, as evidenced by recent actions by Texas and Alabama securities regulators to shut down an NFT project that the regulators concluded violated their respective state’s securities laws.
In the non-fungible tokens (NFT) space, many have focused their attention on how the Securities and Exchange Commission (SEC) may view these digital assets.
