Football Index to enter administration
The football player stock exchange has taken its platform offline while the Gambling Commission has suspended its licence.
UK.- The football player share dealing site Football Index has suspended its platform as its owner, BetIndex, prepares to enter administration.
The British regulator, the Gambling Commission, has suspended the operator’s licence.
The news comes just days after Football Index announced a reduction in the dividends it pays.
The Gambling Commission said it had suspended the operator’s licence after conducting a review following those changes.
The regulator said it had “concerns activities may have been carried on in purported reliance on the licence, but not in accordance with a condition of the licence, and that Football Index may not be suitable to carry on with licensed activities.”
It said: “We have made it clear to the operator that as the investigation progresses, we expect it to focus on treating consumers fairly and keeping them fully informed of any developments which impact them.”
BetIndex is now looking to restructure, a move that may result in customers receiving equity as well as representation on its board. A new management team may also be brought in.
The company said in a statement: “The board of BetIndex Limited has consulted with external legal and financial advisors, and the [British] and Jersey Gambling Commissions. The decision has been made to suspend the platform.
“We are pursuing a restructuring arrangement to be agreed with our stakeholders including, most importantly, our community. We are preparing this through an administration with insolvency practitioners Begbies Traynor, to seek the best outcome for customers with the goal of continuing the platform in a restructured form.
“The board have at all times been seeking the best way to sustain the platform as we believed a recovery was not only possible but also in the best interests of our customers. This decision is deeply regrettable and is the outcome we were seeking to avoid by restructuring dividends.
“However, we believe it is the most responsible route forward for our community given the situation as it has developed.”
Football Index was launched in 2015 by entrepreneur Adam Cole, who stepped down as chief executive at the end of last year.
