nterim Chief Executive of the UK Gambling Commission (UKGC) Andrew Rhodes has published a blog post discussing the collapse of BetIndex, operator of the Football Index sports betting brand, earlier this year.
In the statement, Rhodes aimed to tackle questions that have arisen in relation to the Gambling Commission’s role and responsibilities and the brand’s actions since the publication of a report published by the Department for Digital, Culture, Media and Sports (DCMS) last month.
“There are some incorrect interpretations of the actions we took or did not take and there is a degree of misinformation and misunderstanding I want to address,” said Rhodes.
The Chief Executive said the Commission did not license a Ponzi scheme, with the independent report concluding Football Index was not operating one. “There was nothing about Football Index’s operating model when we first licensed it that made it different to other operators, except its reliance on a single product rather than a diverse portfolio,” states the blog post.
Rhodes goes on to explain that a company collapsing with money lost does not automatically make that a Ponzi scheme. Moreover, at the detailed financial assessment in early 2020, BetIndex was able to cover the liabilities in bet dividends for at least 12 months and potentially for three years if it made significant reductions to its…