Two Members of Parliament, who are also part of the All-Party Parliamentary Group for Gambling Harm (APPG), have criticised the UK Gambling Commission (UKGC), saying it has failed the Football Index’ users. As revealed by The Athletic, this week politicians are expected to ask questions about the virtual stock market gambling website-related problem in Parliament.
The MP from the Conservative Party Richard Holden told The Athletic that the UK gambling regulatory body must immediately address some crucial questions associated with oversight. According to Mr Holden, the existing regulation is unfit to serve its purposes and the 2005 Gambling Act review that is being carried out by the Government has to take into account the case that has been described as the “most serious disaster” that has affected British gamblers to date.
A week ago, the operator that offers virtual shares in real football players revealed that its dividend payments suffered a massive decrease, which led to a value decline of its share price. As a result, many customers of the company lost tens of thousands of pounds in several hours.
Currently, the company is in administration. Several days ago, the UK Gambling Commission suspended its operating licence, with many customers still having their money trapped in the platform.
Football Index Had Its Licence Suspended by the UKGC on March 12th
On March 12th, the UKGC publish an announcement revealing its decision to suspend the operating licence of BetIndex Limited, which has been trading as Football Index, in line with section 118(2) of the country’s Gambling Act.
As the UK gambling regulator revealed, the licence suspension follows an ongoing review into the operator under section 116 of the Gambling Act, as the UKGC had been concerned that activities may not have been carried out in line with a condition of the licence under which Football Index may not be fit to continue the provision of its licensed activities. The Gambling Commission further noted that it has addressed the gambling company that it is expected to treat its customers fairly and keep them informed about any developments that affect them.
Although the UKGC has been proactive in suspending the gambling company’s licence, politicians are now asking questions on why the company had been given an operating licence in the first place, especially considering its complex structure and the risk of shares losing their value. Furthermore, some Members of Parliament believe the UKGC was not right to provide the company with a licence, as many consumers were led to believe that the operator’s platform was more of an investment rather than a gambling one.
Carolyn Harris, an MP for the Labour Party, also criticised the UKGC for doing nothing while the company had its “dreadful practice” exploiting and tricking punters.
As The Athletic reported, a spokesperson of the UK main gambling regulatory body said people use the services offered by gambling companies at their own risk. They also shared there was no guarantee that online gambling operators would remain in line with the requirement of keeping customers’ funds in a separate account that would make sure consumers get their money back in case the operator faces financial difficulties.
The UKGC spokesperson further explained that the procedure of issuing an operating licence to a gambling company includes suitability and financial circumstances checks but the business is not overseen on a daily basis. The financial health of gambling companies is not directly monitored in real-time, either.
- Author
Olivia Cole
