UK Gambling Commission under attack after Football Index falls through
There has been rising pressure set on the UKGC after the Football Index stated last week that it was unable to keep operating the business because of some problems with liquidity. People are now demanding the UKGC to explain this event and provide clear information as to why this happened.
The new DCMS undersecretary, John Whittingdale, who is currently supervising the UK’s gambling laws, has reported had discussions with the leaders of the UKGC concerning the issue with Football Index. Many traders have lost thousands of pounds after the price of the exchange plummeted.
The involvement of Whittingdale in this case comes after the shocking resignation of Neil McArthur, who was the UKGC’s Chief Executive, after his resignation was announced to the stakeholders on Tuesday. Up until now, the UKGC had suspended ‘BetIndex Limited’’s licence, which is the company that operates Football Index, as they claimed that Football Index will not be able to go forth with licenced activities.
In the meantime, the APPG said that the company’s downfall clearly showcased why the Commission desperately needs wholesale reforms concerning its mistakes when it comes to checking operators’ worthiness of licencing.
Many have been concerned on why the Commission would go forth with the approval of a sports betting licence for a brand that is widely known as being a trading exchange platform, who actually does not provide any sports betting services. Back in 2019, ASA rebuked BetIndex after it released many videos promoting Football Index as being a source of income that people can rely on, and mentioned none of the risks associated with it.
And despite the fact that Football Index was promoted as a trading platform, it was never approved by the FCA, therefore the prices that players set were bets and were not protected.
The downfall of Football Index is now being said to be the Commission’s largest failure, and the DCMS is now undertaking a review of its regulatory structure and its operational methods, included in the review of the 2005 Gambling Act.