The review will
cover the period from September 2015, when BetIndex’s
licence was granted by the Gambling Commission, to March
this year when the licence was suspended.
Malcolm Sheehan QC will review the steps taken by the
Gambling Commission and other regulatory bodies regarding
BetIndex. As set out in the terms of reference published today,
it will examine the regulatory environment around the novel
football betting product which collapsed earlier this year
leaving thousands of customers out of pocket.
The review will examine the actions of the Commission in
assessing, licensing and monitoring the operator. In
addition, the review will examine the actions taken by the
Financial Conduct Authority in determining whether the
product should be regulated under the Financial Services
and Markets Act.
The Gambling Commission is carrying out a separate
regulatory investigation into BetIndex’s licence and the
review is also independent of the ongoing administration
proceedings, which are looking at the assets and
liabilities of the firm.
Malcolm Sheehan QC will report on the findings of the
review in the summer. Alongside any lessons learned for the
regulators, the report will feed into the government’s
ongoing Gambling Act Review. The government intends to
publish a white paper following the call for evidence on
the Gambling Act Review before the end of the year.
ENDS
Notes to editors:
- Malcolm Sheehan QC is experienced in commercial and
common law practice, with a particular focus on product
liability and group actions, as well as public and
regulatory law.
- The Gambling Act
Review Call for Evidence closed on 31 March, but
former customers can continue to provide information to
DCMS (gamblingactreview@dcms.gov.uk) about the Football
Index case where it falls within the Act Review’s scope.
Where relevant to the independent review, these will be
passed onto Malcolm Sheehan QC. Customers can also
continue to contact the Gambling Commission with evidence
related to the regulatory investigation.
- Football Index, operated by BetIndex Ltd, had a model
that allowed customers to bet by buying ‘shares’ in
footballers and receive returns based on their performance.
The Gambling Commission suspended the firm’s operating
licence in March, and it entered administration shortly
after.
