Football Index, an online betting company that expenses itself as a “stock market” for soccer, has entered management and had its playing licences suspended.
Betting has been suspended and consumers are not able to make deposits or withdrawals.
Championship aspect QPR have mentioned they’ll now not lift the Football Index emblem on the entrance in their house and away shirts.
BBC Sport seems at what has happened and what the response has been.
What is Football Index?
Football Index introduced in 2015 and permits customers to purchase what it calls “shares” in skilled footballers and can pay “dividends” in accordance to their performances.
If a participant plays neatly, their switch worth is going up or they signal for a larger membership, their “share price” is going up.
The goal for customers is to determine emerging stars, purchasing stocks in them whilst nonetheless rather reasonable sooner than promoting at a benefit after their worth rises.
Football Index calls itself a “challenge to traditional bookmakers” and another to the common inventory marketplace which “can seem intimidating and inaccessible”.
What has happened?
On 5 March, Football Index introduced a coverage trade which diminished the payouts on gamers, main to a worth crash. This adopted different price crashes on the exchange earlier this year.
On Thursday, dad or mum company WagerIndex Limited put out a statement, saying they’d entered management after appointing insolvency practitioners Begbies Traynor.
It mentioned the goal used to be to to find “the best outcome for customers with the goal of continuing the platform in a restructured form” and that each one facets of the platform will “remain suspended” till the directors are in place of business.
The UK Gambling Commission and the Jersey Gambling Commission, the place WagerIndex is primarily based, due to this fact each suspended its licence.
What does it imply for customers?
Users are not able to withdraw budget from their accounts and, if the industry collapses, it might go away person consumers dealing with considerable losses.
WagerIndex mentioned it’ll grasp customers’ cash in “a segregated account to be managed in conjunction with our advisors, protected by the trust arrangements that are in place”.
The UK Gambling Commission mentioned it “expects” the company to “focus on treating consumers fairly and keeping them fully informed of any developments which impact them”.
The Jersey Gambling Commission reminded WagerIndex it’s nonetheless topic to its licence stipulations “in particular customer funds that are under its duty to protect and return”.
What about the golf equipment it sponsors?
Football Index were the blouse sponsor for Nottingham Forest since the 2019-20 season and signed a blouse sponsorship take care of QPR sooner than the get started of this season.
QPR introduced on Friday that the Football Index identify and emblem will now not seem on the entrance in their house and away shirts, efficient from their subsequent recreation in opposition to Huddersfield on Saturday.
“We entered into a one-year agreement with Football Index in good faith,” mentioned QPR leader govt Lee Hoos.
“In light of recent events, the front property of QPR’s home and away strips will no longer sport the Football Index logo.”
Nottingham Forest, who host Reading on Saturday, are but to liberate a commentary on whether or not their shirts will nonetheless be subsidized through Football Index.