Football Index: No compensation

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Maximilian Deininger 15. June 2023

The British government will not compensate former customers of the collapsed bookmaker “Football Index”. The conservative State Secretary Nigel Huddleston officially announced this. British players, who had sometimes lost high sums due to the collapse of the US gambling platform, hoped to compensate their own government until the end.

Football Index enabled its customers to buy shares for real footballers and to achieve dividends depending on the performance. ((© prapoth panchuea/unsplash)

No public funds for victims

In a special debate, the British Parliament came to the conclusion that No public funds for compensation the former customer of the US bookmaker “Football Index”. Many opposition figures had insisted on the fact that those affected in the UK should be received by the tax authorities. However, Nigel Huddleston prevailed in the debate and does not see responsibility with the government.

In his speech in the Westminster Hall in London, the conservative state secretary said that the collapse of “Football Index” and the associated financial damage for many British were a big scandal. He spoke out great sympathy for those affectedHowever, confirms that there are procedures and processes that the government cannot deviate.

Accordingly, politics does not consider it reasonable to absorb the financial collateral damage by public funds. The cheated ones would have I knowingly used your money for gamblingwhat losses would bring with it. In addition, the gambling supervision would have no legal powers to cover losses caused by the collapse of a gambling group.

Gambling supervision in criticism. The British supervisory authority UKGC brought in a lot of public criticism. Since the regulatory authority is responsible for the control of the British gambling market and the US sports betting platform has withdrawn too late, its faulty behavior is accused. The UKGC is directly subordinate to Huddleston and its Ministry of Digital, Culture, Media and Sport.

Social democrat is campaigning for victims

Liz Twist, social democrat and supporter of the Labor party, campaigned for the victims as the initiator of the special debate and tried to convince the MPs of the application for compensation. She showed the Financial and mental needs of the cheated ex-customers from “Football Index”. For this she led specific case studies. Twist clearly sees the government in responsibility to develop a solution for those affected. A financial compensation regulation is part of your eyes.

During the special debate, the politician not only tried to convince the MEPs present, but also the government also criticized for its many failures. In their opinion, the existential financial damage that the collapse of “Football Index” has brought with them for many British customers are due to the too late action of the Financial Market Authority FCA and the UKGC.

The gambling supervision in particular was taken into the lack by Twist. She quoted one Independent investigation report from September 2021, who was at an early stage in “Football Index” Inconsistencies and bizarre business practices found would have.

Support for Twist. Many MPs agreed to Liz Twist and supported them in their concerns. For example, Ronnie Cowan from the Scottish National Party said that “Football Index” was licensed by the UKGC and has obviously failed. The gambling supervision is responsible for the fact that the British consumers would have lost their money. Compensation regulation is therefore the least.

Football Index – The Revolution of Sports Betting

“Football Index” was considered a revolutionary sports betting and gambling platform when entering the market. The operators offered one Combination of classic sports betting and stock market on. Customers had the opportunity to buy shares from real football players – like on a stock exchange. The course and the development of the respective share were based on the performance of the respective player. Showed this good performance on the pitch, the value of the shares rose. With poor shape curve, the value dropped.

Due to dividends, customers were able to earn money through their shares. The capital was distributed by “Football Index” itself. However, the dividends were the main problem of the platform and regularly provided chaos on the digital stock market. For example, the operators repeatedly changed the rules or adapted the distribution of the premiums in their interest. As a result, the values of the players sometimes fell drastically.

The drop in price heralded the downfall. Many stocks no longer found buyers, so that the owners remain on their virtual proportions. Of the Market subsequently imploded And a snowball system spread.

High losses. When “Football Index” officially submitted an bankruptcy application, the users tried to panicked their money. However, withdrawals were only possible to a limited extent because the trade on the platform itself was blocked. This resulted in damage of 105 million $ .