The UK Government Starts an Investigation into the Collapse of the Football IndexMay 15, 2021 John Isaac
The UK government has launched an independent investigation of the collapse in the football index, which will also include a review of UKGC administrative activities.
The UK government will hire an independent expert to conduct the investigation, which works as a trading venue where players can buy shares and receive profit.
The review will examine how the company crashed in March 2020, later the UKGC suspends the membership of the company, as well as would review the activities and decisions made as a result of the actions of the gambling regulator.
The government said findings of the inquiry are hoped to be released this summer and will serve as further proof of the ongoing investigation of the Gambling Act 2005.
According to Minister John Whittingdale, they know how hard it was for those impacted by the crash of the football index and that they lost large amounts of wealth.
The Right Tools to Protect Customers
They are conducting a transparent investigation to identify how this occurred. They are committed to making sure that regulators have the appropriate tools they needed to secure users and manage novel products.
The world of betting is changing quickly, so they are also taking measures by examining the Gambling Law to ensure that the laws are in line with the digital era.”
The investigation will carry out when Football Index clients request a payment from a bankrupt company. The directors of the parent company of operator BetIndex began filing complaints last week.
The BGC, which terminated BetIndex’s license following a UK Gambling Commission lawsuit against its gambling membership, has backed the government’s investigation.
According to the Betting and Gambling Council spokesman, they warm welcome this transparent investigation of the Football Index rule until the operator’s membership was terminated in March.
After the Gambling Commission suspended BetIndex Ltd’s membership last month, they instantly suspended the Betting and Gambling Commission license.
The Problem with the Business Model
Also, the regulator said that it was careful about the information that BGC was briefed of problems related to the Football Index business model in early 2020. This news indicated that the UK Gambling Commission has been advised that the football index activities portrayed pyramid plans.
Although the spokesman said the BGC was unaware of the charges, he concluded, “Consumer welfare remains a top priority, and he expects the investigation will provide important lessons for the future.”
According to John Whittingdale, the government will choose a transparent expert to perform a regulatory investigation into the company. The UK government is taking the football index and the issues of those involved very honestly. The product crash is said to have affected thousands of users, some of whom lost large amounts of money.
The purpose of this review is to find out how these circumstances took place and what lessons we can learn for the future. The government said it would soon announce the appointment of a transparent evaluator and more information on the mandate.