Football Index

That this House is deeply concerned about the recent collapse of the betting firm Football Index, following the suspension of the company’s licence by the Gambling Commission and its entry into administration; notes with concern that customers collectively have over £90 million trapped in the company, with average losses of around £3,000 per customer; understands that the firm operated as a football stock market, offering customers the ability to buy shares in footballers, and customers could be paid in dividends based on player performances; recognises that only a few days after the company minted new shares in footballers, enticing customers to purchase shares, the company drastically decreased dividend payments by 82 per cent, leading to a virtual market crash on the site which caused significant losses for customers; notes that concerns have been raised that the firm operated like a pyramid scheme, and further notes it had been admonished by the Advertising Standards Authority in 2019 for creating the impression that the product was a lucrative investment opportunity; recognises that this scandal has called into question the adequacy of gambling regulation in the UK, given the Gambling Commission awarded this company a licence and would seem to have failed to ensure adequate oversight; and calls for a full independent public enquiry into this scandal to ensure that gambling regulation is fit for purpose in protecting consumers.