UKGC Pledges to Change Processes in Response to Government Criticism Over Football Index Collapse

UKGC Pledges to Change Processes in Response to Government Criticism Over Football Index Collapse

UKGC Pledges to Adjust Processes in Response to Government Criticism More than Football Index Collapse

UKGC takes the blame

When betting web site Football Index collapsed earlier this year, it reportedly placed about £90m ($125.4m) of its users’s money in danger. Now, the UK government is searching for answers as to why the regulatory physique in charge of the gambling industry could allow such a collapse to come about.

ought to have accomplished a lot more to safeguard the betting site’s customers

On Wednesday, MPs published the final results of a review into the UK Gambling Commission’s (UKGC) part in the collapse of Bet Index-owned Football Index. Through the review, carried out by Malcolm Sheehan QC, officials determined that the regulatory physique must have done more to shield the betting site’s consumers in the two years leading up to the crash.

In response to those findings, the UKGC has announced that it plans to make modifications to its regulatory oversight in regards to “innovative” digital gambling products. According to Commission CEO Andrew Rhodes, this will contain thinking about the novelty of a solution when forming an assessment of a gambling company’s risk.

The findings of the overview

UK Government officials began their independent overview of the Football Index collapse in April 2021. The investigation looked back as far as September 2015, when Football Index very first began operating in the UK marketplace, and up to March 2021, when it ultimately entered administration and lost its license.

A statement posted to the UK government web site on Wednesday noted three main findings from the assessment. Officials identified that BetIndex did not properly notify the UKGC of the nature of its product in its license application. Nonetheless, the assessment also determined that when the UKGC did understand “the complete nature” of Football Index in early 2019, it failed to act on the data for the subsequent two years.

Football Index was a betting site through which consumers could purchase or sell shares of soccer players, significantly like they would companies on a stock exchange. They then earned dividend payments based on a player’s overall performance or notoriety. In March, the betting exchange announced a important reduction in maximum dividends per share prior to its eventual collapse.

Added to this, officials also took concern with the handling of the predicament by the Economic Conduct Authority (FCA). It urged the physique to improve the speed to which its responds to requests from the UKGC and the consistency of messaging on regulatory responsibilities. The Commission has considering that confirmed that it has strengthened its Memorandum of Understanding with the FCA, therefore enhancing communication amongst the two bodies.

It is not over yet

While this week might have brought an finish to the government-led assessment into the Football Index collapse, the trouble is surely not over for the UKGC.

Earlier this week, a group of MPs called the Parliamentary All Celebration Betting and Gaming Group (APBGG) announced the starting of an inquiry into the regulator. The APBGG has asked members of the industry to submit any proof of the UKGC acting in a way they feel is “unnaceptable of an business regulator.”

In addition, government officials are at the moment assessing the regulator’s part as portion of their assessment of the Gambling Act 2005. The Division for Digital, Culture, Media and Sport started the procedure in December 2020 with officials set to contemplate reform of a number of gambling-associated laws.

Commenting on Wednesday, UK Gambling Minister Chris Philp confirmed that the findings of the Football Index investigation will feed directly into the ongoing Gambling Act evaluation.