Football Index Users Lost £90 Million in Crash, ‘Failed’ by Gambling Commission, Say UK Pols
Posted on: March 15, 2021, 08:16h.
Last updated on: March 15, 2021, 10:35h.
Football Index users have collectively lost £90 million ($125.5 million) since the implosion of the soccer player-trading platform on March 5, The Times reports. The news comes as British politicians said they would ask questions in Parliament as to whether a lack of regulatory oversight was responsible for the collapse.
While Football Index is reported to have over 500,000 registered users, only around 30,000 were regular traders, according to The Times, This suggests average individual losses of around £3,000 ($4,120) each.
The company billed itself as a combination of fantasy sports and the stock market. Users could buy “shares” in soccer players and were offered “dividends” based on player performances and fluctuating real-world values.
But the market crashed after the company announced a dramatic cut to dividends in a bid to “ensure the long-term sustainability of the platform.”
Users found their shares plummeted in value overnight. Currently, what’s left of their balances is frozen, and they are unable to withdraw their funds.
Asleep at the Wheel?
Football Index is now in administration, and its parent company, Bet Index, has had its license suspended by the UK Gambling Commission (UKGC). But many are asking whether Football Index should have been licensed at all, and whether the gambling regulator should have intervened.
Some have likened the company to a Ponzi scheme, while others have suggested the decision to cut dividends was a deliberate attempt by Football Index management to devalue the platform’s market to reduce its liabilities.
What was the Gambling Commission doing the times when this dreadful practice was exploiting and conning punters?” Labour MP Carolyn Harris asked The Athletic.
“This is exploitation, plain and simple,” she added. “The Gambling Commission’s actions now are very much bolting gate after horse bolted. Unacceptable. Unprofessional. Unbelievable.”
QPR, Forest End Deals
Questions will also be asked about the due diligence of EFL Championship teams Queens Park Rangers and Nottingham Forest, whose jersey Football Index sponsored. The company was a visible brand around UK soccer, advertising regularly on television and radio.
Last Friday, the two soccer teams announced they would end their sponsorship deals with Football Index.
The scandal comes at a time when a regulatory review by the government promises to reshape the gambling landscape in the UK by exerting stricter controls on the industry. Advertising around sports – and soccer jerseys, in particular – is expected to be severely scrutinized.
People using gambling operators do so at their own risk,” the UKGC explained in a statement to The Athletic. “Although remote operators licensed by the Commission must keep customer funds in a separate account/s, there is no guarantee that this will ensure customers get all their money back if the company runs into financial difficulties.
“When the Gambling Commission licenses n operator, we look at suitability, including their financial circumstances. But we do not oversee their businesses on a day-to-day basis or monitor the financial health of operators directly in real-time. That would impose significant regulatory costs and could give a false sense of security to customers.”
Related News Articles
Caesars Casino Heist Suspects Apprehended in Atlantic City
Paul Phua Pleads Not Guilty in Las Vegas Sports Betting Case, Feds Want $13M
North Korea Decriminalizes Horse Racetrack Gambling, Minimum Age Set at 12
Most Popular
The Casino Scandal in New Las Vegas Mayor’s Closet
LOST VEGAS: Wynn’s $28 Million Popeye
MGM Springfield Casino Evacuated Following Weekend Blaze
Sphere Threat Prompts Dolan to End Oak View Agreement
Mark Wahlberg’s Latest Acting Role: Las Vegas Gym Operator
Most Commented
-
VEGAS MYTHS RE-BUSTED: The Final Resting Place of Whiskey Pete
October 25, 2024 — 3 Comments— -
Massachusetts Sheriff Drove Cop Car to MGM Springfield Drunk, Missing Tire
October 7, 2024 — 2 Comments— -
VEGAS MYTHS RE-BUSTED: A Roulette Color Can Be ‘Due’
October 11, 2024 — 2 Comments— -
Iowa Casinos Push Back Against Cedar Rapids Resort Pitch
October 7, 2024 — 2 Comments—
Last Comments ( 4 )
My friend Greg at the office introduced me to Bitcoin trading, which I ignored. The firm we worked for went into recession and closed down, which made him leave for a new job. Gradually, we watched the company fold after the demise of the owner. I ended up searching for a new pay job but couldn’t secure one due to the impact of the covid 19. I phoned Greg to inquire about the vacancy at his workplace, but never did I know that he had quit his job to be an agent for a crypto company. At little time of departure, he owns a car and scouting for a home to buy with his returns and referral bonuses. I engaged in learning through him but the situation got another shape when he was sent to Australia for management reasons. He referred me to his company address(Brigadiatechremikeable (@) Proton (.) Me) At the mention of his name, I was placed on an automatic investment plan of $1000 .its been 4 months now, and although the price of bitcoin isn’t constant, with this I have invested all my life savings into their program and I can boast of additional $70000 in my wallet. if your lost or stolen wallet needs retrieval and how to begin trading, talk to them.
I made the most stupid decision of my life when I decided to invest on a platform that only had positive reviews everywhere to deceive more people. Everything was going well until I decided to make a big withdrawal, they had let me withdraw a small amount at first and this even made me trust them even more until i needed to make a big withdrawal, they denied this and instead made me make several deposits as “tax” in order to approve my withdrawal. This went on for another three weeks and i had already lost a fortune and it didn’t look like they were going to release anything. That was the moment i realized what i had gotten myself into, i plunged into acute depression for about a month before i got in touch with specterlynx,com where i got help with getting all my money back.
I was a victim of WDC Markets investment scam some months ago myself. It was a sad experience for me. However chargebacksecured com helped me get my money back the right way.
I was scammed for a huge amount of money up, devastated I started to search for help. Someone referred an expert and private investigator, Optimus. I emailed him and as soon as I explained what had occurred he told me immediately that it was all a scam. He gathered my case together and within a few days we got a result and I got all of my money back! Optimus was amazing, professional and efficient, he guided me through the whole experience. I cannot thank him enough - I can now live again! His mail info is adamwilson. trading@ consultant.com/ Whatsapp +1879-345-7937