Andrew Rhodes, interim chief executive of the Gambling Commission of Great Britain, has published a blog post responding to common questions from consumers relating to the collapse of BetIndex, operator of the Football Index sports betting brand, earlier this year.
Rhodes said the post aimed to set out answers to recurring questions relating to the brand since the publication of the Department of Digital Culture, Media and Sport (DCMS)’s independent review into the matter last month.
He said the post aims to clarify any misunderstandings of the actions taken by the Gambling Commission relating to Football Index’s collapse.
First, Rhodes stated that the brand was not operating as a ‘Ponzi scheme’, as found by the DCMS’ independent review, and that there was nothing about Football Index’s operating model at the time of licensing that made it substantially different to other operators, besides its reliance on a single product rather than a diverse portfolio.
He said that as set out in its detailed financial assessment in early 2020, the brand was able to cover its liabilities in bet dividends for at least 12 months in cash holdings, and potentially for three years if it made significant reductions to its overheads.
It therefore did not need to rely on new customers to meet its obligations, and was not operating as a Ponzi scheme, Rhodes claimed.
He said the operator did however do two things during the novel coronavirus (Covid-19) pandemic,…