The UK Gambling Commission (UKGC) has decided to publish more details about the background of its regulatory action into BetIndex Limited, trading as Football Index. The watchdog said it has focused the update particularly on the areas where it has received questions regarding its approach.
The gambling regulatory body said that BetIndex Limited was given an operating licence for Remote General Betting Standard Real Event on September 9th, 2015. The UKGC shared that the company is also licenced by the Jersey gambling watchdog.
The Commission explained that the current product offered by BetIndex allow customers, called traders, to place wagers, called shares, on some football players’ future performance. The duration of a bet is 3 years, during which customers receive dividends. After the expiration of the bet, players lose their stake, as well as the right to any more dividends derived from the bets. The product was changed in a way that allowed customers to purchase and sell bets with varying prices.
According to the UKGC, the product offered by BetIndex contains elements that can be classified as betting, which are regulated by the Commission. The elements of the product that are not considered gambling, are not subject to the regulatory body’s remit.
UKGC Had No Evidence to Suspend Football Index’s Licence at the Beginning of the Investigation
The UK Gambling Commission revealed that on May 20th, 2020, it started a formal review into the company’s operations under section 116 of the Gambling Act following some concerns regarding the operator. The review was aimed at addressing issues associated with the gambling aspect of the product offered by BetIndex. The UKGC further noted that at this stage of the investigation it had no evidence to suspend the company’s operating licence.
Then, the gambling regulatory body appointed expertise from an independent expert to examine the operator’s business model, its finances and the legal questions in regard to the appropriate regulatory framework that was applicable in its case.
The watchdog further noted that in early March 2021, the gambling operator had plans to self-suspend its services with the intention to restructure and relaunch. It was exactly these intentions that were found concerning by the UKGC, especially when it came to the timing and the position regarding players’ funds, and as a result, the gambling regulator decided to suspend the company’s licence on March 11th. The Commission further noted it worked in collaboration with the Jersey Regulator.
The UKGC shared it is aware of the fact that an operating licence suspension can result in a financial decline of a company and endanger some customer funds. Therefore, the regulator made it clear that it would only turn to suspension in cases when that is the only option to deliver the right regulatory outcome. That is why the UKGC said the licence suspension on March 11th was the only option left available to the watchdog.
Football Index Must Get Directions from Court Regarding Dividends Distribution
As revealed by the UK Gambling Commission, its investigation in BetIndex, trading as Football Index, is still ongoing but the regulator’s priority is to make sure that the licensee provides its customers with fair treatment and keeps them well-informed of any developments of the probe that affect them.
The gambling operator holds a Trust Account that is intended to ensure that all dividends are paid to winning consumers. As the company’s solicitors have assured the UKGC, all payments from this account have been suspended by BetIndex whilst the entitlements of its customers are calculated and processed after the Court gives the company some directions. The gambling operator is awaiting the Court for instructions on how to appropriately treat those funds, with the legal processes being underway.
The Gambling Commission has received assurance that the funds in the company’s Trust account will not be distributed to any other creditor than the operator’s customers. However, it is the Court that is expected to decide on the matters associated with the funds’ distribution, and not the UKGC.
- Author
Daniel Williams
