Football Index is not a Ponzi scheme, or at least Gambling Commission declares that Football Index does not work with Ponzi scheme.
In fact, the interim managing director of the English Gambling Commission, Andrew Rhodes, ha Published a post where he answered the most common questions that consumers have on the collapse of the start of Bethindex, who is the operator of the Football Index betting brand.
We remember, among other things, that Gambling Commission months ago saw the CEO Neil Mc Arthur resign.
Football Index is not a Ponzi scheme, but why Rhodes' post?
Rhodes, first of all, specified that Football Index is not a Ponzi scheme, as also found by the control made by the DCMS (Department of digital culture, vehicles and sport).
In addition, not only the Gambling Commission declares that Football Index does not work as a Ponzi scheme, but also that There was nothing in the Operating model of Football Index at the time of the granting of the license, in addition to the operation with a single product, which would make it different from other operators.
Then, always Rhodes, in the post he said that His goal is to clarify any misunderstanding on the actions of the Gambling Commission and to answer the questions regarding the brand.
Football Index errors
Football Index is not a Ponzi scheme, as mentioned by Gambling Commission, but However, he made mistakes that led him to the collapse of the start of the year.
As indicated in its financial evaluation of the beginning of 2022, The brand was able to cover its liabilities in dividends of bets For at least 12 months in cash, and potentially for three years making reductions in general business expenses. He therefore did not need new customers to satisfy his obligations, And he wasn't even operating like a Ponzi scheme.
However, during the pandemic of Coronavirus, without notifying the Gambling Commission As from his obligations, he did Two things that led to a quick exhaustion of financial reserves.
In the early ha Increased dividends to customers by 50% And then, when he heard air of dissatisfaction between users, it increased them 100%null Doing so it is Long -term protection for customers are reduced. Subsequently it also has changed its cash seal requirements to only one month, from the 12 months planned for dividends.
In this way Bethindex practically doubled the speed with which he was paying money, but at the same time he was not recruiting quite new customers to compensate the payments themselvesnull Which led to his collapse.
Gambling Commission also declares that Football Index is not a Ponzi scheme
Gambling Commission declares that Football Index does not work with Ponzi scheme, but that If he had been aware of the company's shares, the suspension of the license would have arrived much earlier.
In addition, the Gambling Commission declares that Football Index is not a Ponzi scheme, to defend yourself he says of Do not monitor the business of gambling operators on a daily basis, or to check its financial health directly in real time. And, moreover, he declares that They cannot offer, and have no legal power to do it, compensation for lost money.
Then, to conclude they also said that they give no licenses for a product that do not understandnull Bethindex offered functionality, such as the sale of betting between users, the function Instant Sell e Market Maker, which were not included in the terms of its license.
And, they added, that The reason why customers were not warned before the current investigations is that they cannot speak of individual cases or companies that are under investigation.