Football Index Must Pay off Players
In March of this year, a completely unexpected announcement went through the media: Football Index filed for insolvency. Admittedly, the company had tried to prevent this with some measures. Unfortunately, this idea did not lead to success. Now comes just as surprisingly another message: Football Index must refund partial losses.
Football Index with Stock Exchange Character
Football Index was not a typical sports betting site.
Instead, players could buy shares in the platform and in the future had the right to bet on the performance of football players or on the platform itself.
Thus, this platform was a mix of typical stock market actions and betting.
The fact that this idea was enormously popular is shown by the sums paid in.
Shortly before the bankruptcy filing, players were still making deposits totaling 90 million pounds.
Then suddenly it was said that the company was suffering losses.
These were to be compensated by reducing the returns.
Apparently, this idea did not work, as insolvency is already in full swing.
Thus, Football Index's assets are now in an escrow account.
Customers who either still had money deposited or even suffered a loss recently will be very happy about this news.
In this context, there is already the first court ruling that will make those who generated losses recently sit up and take notice.
Those affected certainly did not expect such a verdict.
BetIndex Must Pay Back 4.5 Million Pounds
The Football Index scandal led to the APPG getting involved.
APPG is the abbreviation of All-Party Parliamentary Group.
This company ordered an investigation.
The main accusation was against the British gambling regulator.
Latter was guilty of not having sufficiently under the radar Football Index.
The order of the investigation led to the result that the umbrella company of Football Index – BetIndex – must pay out more than 4.5 million pounds to the players.
But how does this sum come about? This is the amount that is currently in the business account.
To carry out a sensible distribution, which is also neutral, the money was transferred to an escrow account.
On the positive side for all concerned, BetInex only has a liability of 3.2 million pounds.
Thus, there is a surplus of 1.3 million pounds.
There is already an idea how this money will go out.
It first goes to those who still have money in their accounts or whose bets are still running.
However, the players should still hold back with their joy.
As soon as an insolvency is underway, more creditors will sign up.
These will also be in the distribution of the available assets.
However, according to Football Index's terms and conditions, it must happen in such a way that players' investments are safe from creditors' claims.
The situation is different with pure bets.
These do not fall under any protection, as is the case with other games of chance.
If bets are currently still active, these are again subject to a special regulation.
It has not yet been clarified whether a refund option is available here.
Investigations Against UKGC
The affected players are not keeping quiet and have already contacted a lawyer with a class action lawsuit.
Currently, the chances of getting the losses back are still in their investigations.
According to APPG, each player has lost an average of 3,000 pounds.
APPG attributes this fact in large part to the UKGC, as it had issued a license to Football Index.
Now it is to be checked whether everything went correctly during the license application process and whether the regulatory authority dealt with Football Index's business model sufficiently and in detail.
Other experts have already found a problem around terms and conditions: Football Index was only able to pay the announced and promised dividends because new customers kept signing up.
With their investments it was possible to pay the existing customers.
Such a procedure is completely unacceptable in the field of gambling. Such words have been used, for example, by those involved in the Clean Up Gambling campaign.