Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment she has made of the potential merits for gambling regulation of requiring the Gambling Commission to assess the novelty of an (a) operator or (b) product when conducting scrutiny.
Answered by Chris Philp - Shadow Home Secretary
Officials from the Department for Digital, Culture, Media and Sport worked closely with their counterparts at the Treasury to discuss the collapse of BetIndex, the role of the Financial Conduct Authority (FCA) in this case, the independent review conducted by Malcolm Sheehan QC and the lessons learnt that were identified by the review.
Following the publication of the review, the Gambling Commission updated its framework for risk based regulation so that product novelty is properly considered alongside other factors in determining the level of scrutiny an operator is placed under.
The review also clearly states that the FCA’s concluded position was that no part of Football Index fell within the FCA’s remit on legal grounds. Only one company is currently regulated by both the Gambling Commission and the FCA. The Commission continues to be vigilant about emerging products and operators and, under the terms of the new Memorandum of Understanding (MoU) with the FCA, identify and highlight the potential need for its involvement wherever necessary.
The FCA and the Gambling Commission strengthened their Memorandum of Understanding in response to Mr Sheehan’s recommendations in the independent review, including establishing new escalation routes and commitments on timeliness of responses to ensure regulatory impasses are identified and overcome quickly. The FCA has additionally nominated an Executive Director to oversee its relationship with the Commission.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what discussions her officials have had with their counterparts at the Treasury on the actions of the Financial Conduct Authority with regards to its regulation of BetIndex Limited.
Answered by Chris Philp - Shadow Home Secretary
Officials from the Department for Digital, Culture, Media and Sport worked closely with their counterparts at the Treasury to discuss the collapse of BetIndex, the role of the Financial Conduct Authority (FCA) in this case, the independent review conducted by Malcolm Sheehan QC and the lessons learnt that were identified by the review.
Following the publication of the review, the Gambling Commission updated its framework for risk based regulation so that product novelty is properly considered alongside other factors in determining the level of scrutiny an operator is placed under.
The review also clearly states that the FCA’s concluded position was that no part of Football Index fell within the FCA’s remit on legal grounds. Only one company is currently regulated by both the Gambling Commission and the FCA. The Commission continues to be vigilant about emerging products and operators and, under the terms of the new Memorandum of Understanding (MoU) with the FCA, identify and highlight the potential need for its involvement wherever necessary.
The FCA and the Gambling Commission strengthened their Memorandum of Understanding in response to Mr Sheehan’s recommendations in the independent review, including establishing new escalation routes and commitments on timeliness of responses to ensure regulatory impasses are identified and overcome quickly. The FCA has additionally nominated an Executive Director to oversee its relationship with the Commission.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, when her Department first received correspondence from the Gambling Commission on its investigation into Football Index.
Answered by Chris Philp - Shadow Home Secretary
The first piece of correspondence from the Gambling Commission alerting DCMS to the BetIndex Limited case was an email to officials on the 10th of March 2021.
Since then ministers and officials have had a number of meetings with the Gambling Commission on the case, the independent review, and lessons learnt. Records of ministerial meetings are published quarterly and are available on gov.uk.
Officials at the Advertising Standards Authority and DCMS have discussed the Betindex case periodically since the company’s collapse in March 2021, but there has been no written correspondence on it.
Asked by: Lord Brennan of Canton (Labour - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what recent assessment she has made of the implications for her policies of the proposals for changes to Gambling Commission fees published by the independent review of the regulation of BetIndex Limited in June 2021.
Answered by Chris Philp - Shadow Home Secretary
The Government’s Gambling Act Review is taking a close look at how the Gambling Commission licence fees are set and we are considering all the evidence carefully, including the conclusions of the independent review of the regulation BetIndex Ltd, the operator of Football Index, which we published in September. We will publish a White Paper outlining our conclusions and proposals for reform in the coming months.
Asked by: Lord Brennan of Canton (Labour - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what recent assessment she has made of the potential merits of introducing a statutory timeframe for the review of the Gambling Commission’s licence fees.
Answered by Chris Philp - Shadow Home Secretary
The Government’s Gambling Act Review is taking a close look at how the Gambling Commission licence fees are set and we are considering all the evidence carefully, including the conclusions of the independent review of the regulation BetIndex Ltd, the operator of Football Index, which we published in September. We will publish a White Paper outlining our conclusions and proposals for reform in the coming months.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps the Government is taking to help ensure that those responsible for the collapse of Football Index are held to account.
Answered by Chris Philp - Shadow Home Secretary
The Gambling Commission has revoked the licence of Football Index’s operator, BetIndex. It has also referred it to the Insolvency Service to consider whether directors breached fraud or insolvency laws.
The Insolvency Service investigates allegations of Directors misconduct and they can conduct criminal investigations against those suspected of committing criminal offences.
Senior members of the company have also surrendered their Personal Management Licences.
Asked by: Apsana Begum (Labour - Poplar and Limehouse)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if she will make it her policy to develop a plan for how compensation will be guaranteed for people affected by the collapse of the Football Index.
Answered by Chris Philp - Shadow Home Secretary
The government appreciates the significant impact that the collapse of the novel gambling product Football Index had on former customers. BetIndex, the company which operated Football Index, went into liquidation on 5 November. The process is continuing and it is likely that this will result in some amounts being reimbursed to creditors. There is no compensation scheme for losses caused by a gambling firm ceasing to operate and the government does not think it would be appropriate to use public funds for these purposes.
Asked by: Virendra Sharma (Labour - Ealing, Southall)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, when she plans to publish her Department's White Paper on the future of the Gambling Act; and whether that White Paper will include recommendations relating to the collapse of the Football Index.
Answered by Chris Philp - Shadow Home Secretary
The Government will publish a white paper setting out next steps regarding the Gambling Act Review in the coming months. We are considering all the evidence carefully, including the conclusions of the independent review of the regulation of BetIndex Ltd, the operator of Football Index, which we published in September.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, whether the Government plans to compensate people who lost money as a result of the collapse of Football Index; and if she will make a statement.
Answered by Chris Philp - Shadow Home Secretary
The Government appreciates the significant impact that the collapse of the novel gambling product Football Index had on former customers. BetIndex, the company which operated Football Index, went into liquidation on 5 November. The process is continuing and it is likely that this will result in some amounts being reimbursed to creditors. There is no compensation scheme for losses caused by a gambling firm ceasing to operate and the government does not think it would be appropriate to use public funds for these purposes.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps is she taking to ensure that the victims of the Football Index scandal are compensated for their losses on investments.
Answered by Chris Philp - Shadow Home Secretary
The government appreciates the significant impact that the collapse of the novel gambling product Football Index had on former customers. BetIndex, the company which operated Football Index, went into liquidation on 5 November. The process is continuing and it is likely that this will result in some amounts being reimbursed to creditors. There is no compensation scheme for losses caused by a gambling firm ceasing to operate and the government does not think it would be appropriate to use public funds for these purposes.