Footstock, a football betting trade company, has surrendered its UK gaming licence and ceased operations, just two weeks after the UK Gambling Commission (UKGC) suspended rival Football Index’s licence, following its warning of the company being a ‘Pyramid Scheme’ Back In January 2020
Footstock introduced a ‘playing cards’ feature into its trading site, comparable to the popular panini trading stickers game, in which players played to build their squad by winning and trading cards, with large premiums added to the best players.
Players were divided into five divisions depending on their average results in the Footstock model, with player pricing mirroring traditional fantasy football patterns in which the better performers became rarer as their worth increased.
Recent developments rocked company
Footstock claimed in surrendering its licence that recent developments have rocked its company and culminated in major setbacks.
The start-up was forced to abandon its Seedrs crowd-funding campaign, and it has since lost important investors that are now referred to as “pause companies.” As a result of these conditions, the operator has been put into what is known as the “German equivalent of UK administration.”
Footstock’s statement read: “These unprecedented circumstances have crushed our company in this crucial period of growth. But without funding, Footstock cannot survive. Over the last few days, we tried incredibly hard to find a solution that allows us to stay operational.”