Football Index Collapse
Debate between Nusrat Ghani and Patricia Gibson(1 year, 10 months ago)
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Patricia Gibson (North Ayrshire and Arran) (SNP)
I have a number of constituents in North Ayrshire and Arran who have lost significant sums of money as a result of the collapse of Football Index. Football Index customers were not properly protected, as we have heard today. We know that the Gambling Commission ignored warnings about the business model of the platform, and that the Financial Conduct Authority identified areas for improvement for the company.
The whole shameful episode underlines exactly why we urgently need gambling reform. Gambling must be better regulated. The Gambling Commission, which failed Football Index customers, must be more effective. Customers must have confidence that they will have better protection in future. It is very disappointing that there seems to be no route for redress for those who have suffered significant losses following the collapse of Football Index. In total, about £90 million was lost.
That platform was approved and its licence authorised by the Gambling Commission. The Gambling Commission failed to carry out due diligence, and consumers have paid very heavily for that failure. How is that fair? Why should unsuspecting customers pay for that failure? Clearly, the Gambling Commission’s conduct and competence was not what it needed to be, and its regulation and effectiveness of enforcement was not fit for purpose. One of the many lessons to learn from that is that we must have a gambling ombudsman, to ensure that consumers have a clear avenue for redress.
Those who were caught up in the Football Index scandal and lost a lot of money have been failed at every turn by the very regulation that is supposed to protect them. I urge the Minister to put that right and to not fail them again by turning his back on them. I urge him to compensate the victims and ensure a full review of the Gambling Act 2005, informed by the independent report on the regulation of Football Index. This cannot be allowed to happen again. The whole gambling industry, as well as consumers, will benefit if there is legislation and protection in which everyone can have confidence.
Ms Nusrat Ghani (in the Chair)
Before I call Ben Lake, I want to say that, because everyone’s contributions have been remarkably in time and so powerful, the Opposition Front-Bench spokesperson will have four minutes and the Minister will have eight. I have no doubt that he will take many interventions.