- Regulator told of ‘exceptionally dangerous pyramid scheme’
- Football Index went into administration last week
The Gambling Commission was warned in January 2020 that the betting firm Football Index, which suspended its platform last week, was “an exceptionally dangerous pyramid scheme under the guise of a ‘football stock market’” and that immediate and urgent action was needed “to alert and protect their users”, the Guardian can reveal.
Football Index launched in 2015 under a licence from the Gambling Commission, which regulates betting companies, rather than the Financial Conduct Authority, which oversees investment products. The platform allowed its users to buy what it described as “shares” in leading footballers, which would earn “dividends” over the three-year term of their bet. Users could also buy and sell “shares” between themselves, with Football Index charging a 2% transaction fee.
