UKGC CEO sets record straight amid ongoing Football Index uproar

UK Gambling Commission (UKGC) CEO Andrew Rhodes has moved to dispel fears surrounding the ongoing Football Index debacle following a series of angry messages aimed at the regulator.

Rhodes took to Twitter to delve into the apparent lack of a company voluntary arrangement (CVA), which many Football Index customers believe to be key in reclaiming their lost funds.

Rhodes said a CVA, which is used by an insolvent company to pay creditors over a fixed period and allow the company to continue trading, was a matter that had nothing to do with the UKGC.

Rhodes said: “A CVA may or may not happen – it is not something the GC is involved with and would not be. It’s between the administrators and any potential investor/buyer to set up a CVA.

“If a CVA does happen, then they will likely make an ‘offer’ for the debts the company has which would be your bets as well as any other debts.

“This does not mean you would get all your original stake back – it depends on what they offered. Then the CVA would need to apply for a licence to operate from us, which we would be obliged to consider,” he added.

On the value of Football Index player portfolios, Rhodes noted customers would need to lower their expectations as any potential CVA may not consider the value of the dividends as the same as the original stakes.

He continued: “[The bets] need to be valued by the administrators. There are several ways of valuing the debt and while many feel this should be the original stake, there are several ways of looking at it.

“Realistically, this will be part of attempting a CVA and if there is no ultimate rescue for the company the debt would need to be valued as part of winding a company up.”

Rhodes went on to relay that the review into the collapse of Football Index, which he stressed was not being conducted by the UKGC, would be due this summer but he did not have a date at the moment.

Rhodes also reaffirmed the fact the UKGC plays no role in repaying funds and covering losses when a regulated company goes into administration.

He said: “Being regulated does not prevent a company going into administration and unlike some other sectors, there is no insurance or compensation scheme to cover gambling companies that go into administration and then liquidation.

“Funds protection needs to be made clear by the operator, but this will vary between companies and aside from funds held separately, often the cash balances, this does not protect against a company going into administration.

“Administration for operators is not common – there have been four in recent years, though orderly wind-up is a bit more common,” he added.

Finally, the interim chief exec pleaded with Football Index users and scrutinisers to wait for the full publication of the report into the matter before coming to their own conclusions.

He continued: “Many have assumed the GC ‘did nothing’ and you are entitled to your view. What I would ask you to have in mind is that we currently cannot say very much at all about these matters because of ongoing investigations and reviews.

“I’m not asking that people change their view, just that you understand that we have not been able to set out what we know and what we did, which is normal when there are ongoing proceedings.”

Elsewhere, Index Labs, the technology firm that powered Football Index, has gone into administration and will close down.

Matthew Tait and Neville Side of BDO LLP were appointed as joint administrators on 2 August and will retain a small portion of Index Labs’ 27 staff to oversee the shutting down of business operations.

Tait said: “Following the administration of its sole customer, Index Labs Limited was unfortunately unable to continue operating outside of an administration process.

“As Index Labs Limited administrators, we are focused on finding a solution that achieves the best outcome in the circumstances for its creditors, acting as smoothly and swiftly as possible.”