Two months after the operator went into administration, Football Index issued a statement about the allocation of missing funds to its customers.
Begbies Traynor, Football Index’s parent company BetIndex’s insolvency practitioner, started processing consumer claims against the company in April.
All users of the football player trading site, including those who had self-excluded through Gamstop, had access to the claims process.
On May 10, a hearing will be held to determine the allocation of up to £4.5 million to former Football Index customers.
Football Index detailed the following in a recent update: “On 30 April 2021 the Administrators of BetIndex Limited issued an application for the determination of the appropriate distribution of the monies held in the Football Index Player Protection Account, and the identification of the customer classes who may be entitled to participate in those funds.
“This is the first step towards the distribution of cash balances to customers of the Football Index platform. The hearing will take place at 11:30am on Monday 10 May 2021.”
Football Index temporarily halted operations in March after a mass exodus of consumers and investors as a result of its decision to reduce player dividends from 14p to 3p, resulting in some users losing hundreds of thousands of pounds.
License and membership
The UK Gambling Commission subsequently revoked the operator’s licence, as well as its membership in the Betting and Gaming Council (BGC).
The business then hired Begbies Traynor to handle insolvency proceedings, with the aim of ensuring the ‘best outcome for customers,’ while BetIndex expressed the intention of continuing to operate ‘in a restructured form.’
While the news is good for former Football Index owners and consumers, the fallout from the operator’s demise appears to have political consequences, as the UK government continues to overhaul the 2005 Gambling Act.
The UK Gambling Commission (UKGC) in particular has been chastised for its handling of the situation, with its decision to revoke Football Index’s licence being criticised as having been made too late.
Ministers in the UK, who were reportedly “deeply concerned” by the developments, launched an investigation into the trading exchange’s collapse in April, although MPs on the All Party Parliamentary Group for Gambling Related Harm (GRH APPG) called the situation a “scandal.”