The All-Party Parliamentary Group for Gambling Related Harm (APPG) is seeking support. It has asked the Secretary of for Digital Culture, Media, and Sport (DCMS) to undertake a public investigation. To lead an inquiry into the collapse of the Football Index.
BetIndex, the platform’s operator, went into administration earlier in the month, citing a shift in its dividend structure. BetIndex said it was to ensure the platform’s sustainability.
This dividend change came just days after the operator promoted new investments from players by issuing new footballer shares.
The failure of the operator has put many players’ funds in jeopardy. Despite promises from the Gambling Commission that player account funds will be paid before all other debts, Football Index’s terms and conditions state that funds invested in players on the platform are not secured. It is because they are “sums at risk.”
Players lost all of their money as a result of the collapse.
“In a regulated market, when people gamble, they should have the trust they are doing so based on the result of a wager. It should not be a risky bet on the solvency or survival of the licensed operator,” said APPG chairs Carolyn Harris MP, Ronnie Cowan MP, and Lord Foster of Bath in a statement to the secretary of state.
As a result, we request that you hold an immediate public inquiry into the events that led to this. As well as the Gambling Commission’s conduct and competence.”
Shortly after the collapse, the Gambling Commission announced that it had been examining the platform for nearly a year. Still, it had not taken action, partially due to fears that any action would have exacerbated the company’s financial situation