The UK Gambling Commission has suspended the licence of Football Index under the Gambling Act 2005.
Football Index is a 'stock market' for footballers, where customers purchase 'shares' in players in the hope that they increase in value, receiving dividend payments linked to player performance.
However share values and dividend payments have been slashed, wiping out thousands of pounds' worth of value for customers. It has also suspended the platform, meaning customers cannot withdraw their (depleted) funds from it.
The company has announced it is entering administration and its intention to pursue a restructuring arrangement with the possibility of “equity in BetIndex Limited being distributed to customers”.
The administration process will allow the company temporary breathing room from paying its creditors to allow them to explore such restructuring options - which hopefully it is able to do soon and give clarity to its customers.