Government announces independent review into collapse of Football Index

The collapse of betting operator Football Index is to be the subject of an independent review, the government announced on Tuesday.

Football Index mimicked the stock market by allowing customers to buy 'shares' in footballers, with users receiving dividends based on how the footballers performed, while the share prices rose and fell.

However, the firm went into administration in March with the Gambling Commission suspending the firm’s operating licence shortly afterwards.

The Gambling Commission has been criticised for not acting sooner over warnings about Football Index's business model, with estimates that its customers have lost up to £90 million as a result of the collapse.

A group of MPs and peers wrote to prime minister Boris Johnson last week calling for a public inquiry into Football Index, but the government's announcement stops short of that.

Instead ministers said they would appoint an independent expert to lead the review into the circumstances surrounding the company's demise, including the decisions and actions of the Gambling Commission.

The review would be separate to the Gambling Commission's ongoing investigation of the case.

John Whittingdale: 'We know how difficult it has been'

Gambling and lotteries minister John Whittingdale said: "We know how difficult it has been for people affected by the collapse of Football Index, with some losing significant sums of money. We are setting up an independent inquiry so that we can find out how this happened.

"We are determined to ensure that regulators have the right tools to protect customers and to deal with novel products. The gambling landscape is evolving rapidly and so we are also taking action by reviewing the Gambling Act to make sure our laws are fit for the digital age."

The Betting and Gaming Council, which halted Football Index's membership of the organisation after its licence was suspended by the Gambling Commission, said it strongly welcomed the review.

A spokesperson added: "We have been concerned about reports that the Gambling Commission was made aware of issues surrounding Football Index’s business model as early as the start of 2020, something the BGC was not made aware of at the time.

"The top priority remains consumer welfare and we hope that the inquiry leads to vital lessons being learned for the future."

The government said the findings of the review would be made public in the summer and would form part of the evidence informing the wider review of the 2005 Gambling Act launched last year.

The appointment of the independent reviewer and further details of the terms of reference would be announced "shortly".

A White Paper setting out findings and proposals for reform of the Gambling Act would be published by the end of the year, the government added.

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