- Independent expert to be appointed to look at the
demise of Football Index
- Review will also assess action taken by the Gambling
Commission
- Findings will help to inform the Government’s ongoing
review into the Gambling Act
Football Index, operated by BetIndex Ltd, had a model that
allowed customers to buy ‘shares’ in footballers and
receive returns based on their performance. It entered into
administration in March with the Gambling Commission
suspending the firm’s operating licence shortly after.
The Government will appoint an independent expert to lead
the review into the company, which is understood to have
had many thousands of customers, with some having lost very
large sums of money as a result of its demise.
As well as establishing how the firm collapsed and
identifying any lessons to be learned, the review will look
at the decisions and actions of the Gambling Commission,
which licenses and regulates the gambling industry.
The findings will be made public in the summer and they
will form part of the evidence informing the wider review
of the Gambling Act. A White Paper setting out findings and
proposals for reform of the Act will be published by the
end of the year.
Minister for Gambling and Lotteries
said:
We know how difficult it has been for people affected by
the collapse of Football Index with some losing
significant sums of money. We are setting up an
independent inquiry so that we can find out how this
happened.
We are determined to ensure that regulators have the
right tools to protect customers and to deal with novel
products. The gambling landscape is evolving rapidly and
so we are also taking action by reviewing the Gambling
Act to make sure our laws are fit for the digital age.
The review will also look at the work of other relevant
regulators, to provide a clear account of how Football
Index’s activities were regulated and identify if there are
areas for improvement in how complex products are treated.
The period under review is September 2015 to 11 March 2021,
which is when the Gambling Commission suspended BetIndex’s
licence after concerns over customer funds.
The appointment of an independent reviewer and further
details of the terms of reference will be announced
shortly.
ENDS
Notes to editors:
The Gambling Commission’s regulatory investigation into
BetIndex is ongoing, and administrators are considering the
assets and liabilities of the company in terms of possible
recompense to customers. The call for evidence for the
Gambling Act Review closed last month and findings will be
announced later this year.
