Asked by: Keir Mather (Labour - Selby and Ainsty)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, if her Department will make an assessment of the potential merits of offering financial compensation to people affected by the collapse of BetIndex.
Answered by Stuart Andrew - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
The collapse of BetIndex Ltd, the operators of the novel gambling product Football Index, had a significant impact on former customers, and we recognise the frustration and anger that this has caused. As a result, the Government announced an Independent Review, conducted by Malcolm Sheehan KC, which looked at how the company had been regulated and identified lessons learned for various agencies. These recommendations have since been implemented.
Company liquidation proceedings are ongoing, and former customers will be considered among the creditors as company assets are divided.
Asked by: Philip Davies (Conservative - Shipley)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what discussions she has had with the (a) Gambling Commission and (b) Financial Conduct Authority on potential proposals to regulate companies like Football Index.
Answered by Stuart Andrew - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
The collapse of BetIndex Ltd, the operators of the novel gambling product Football Index, had a significant impact on former customers, and we recognise the frustration and anger that this has caused. As a result, the Government announced an Independent Review, conducted by Malcom Sheehan KC, which looked at how the company had been regulated and identified lessons learned for various agencies. These recommendations have since been implemented.
Following the collapse of Football Index, the then-Minister held several meetings with the Gambling Commission, and officials have worked closely with their counterparts at His Majesty’s Treasury on the role of the Financial Conduct Authority (FCA) in this case. I also met representatives from the Football Index Action Group last year and officials from the department are discussing the issues raised by the group with the Gambling Commission.
Asked by: Dan Jarvis (Labour - Barnsley Central)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, whether she plans to allocate specific funding from the public purse to female grassroots football teams.
Answered by Stuart Andrew - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
We are determined to support more women and girls to get active and football is the most popular team sport in terms of participation for women and girls.
The Lionesses’ fantastic performance at the 2022 Women’s Euros has inspired the nation and it is essential that we take the opportunity to build on the success and legacy of the tournament. This includes Sport England’s investment in 2020 of £1 million into legacy groups to help develop and create recreational women’s football opportunities in each of the nine host cities up and down England. It also includes the Sport England Adult Recreational Football Project, which is led by seven recreational football officers across the country who will develop this area of the game over the next two years.
We will continue to invest in grassroots sport through Sport England funding. In April 2022, Sport England awarded a total of £199,562 in 169 organisations to start new grassroots women’s and girls’ teams in high Index of Multiple Deprivation (IMD) areas. Sport England has also committed over £26 million until 2027 to support the FA’s aim to harness the power of grassroots football to unite communities and improve the health of the nation.
We are also focused on supporting the future development of women’s and girl’s football, and inspiring the next generation. The recently announced Women’s Football Review will look at how to deliver bold and sustainable growth of the women’s game at elite and grassroots level. The Football Foundation is also working with facility owners to name pitches and facilities in towns and cities that have a strong link to each tournament winning squad member, in order to raise the profile of facilities in the UK, and to commemorate the Lionesses.
Asked by: Richard Holden (Conservative - North West Durham)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, how investigations into the collapse of football index are progressing; when she expect those investigations to conclude; and if she will make a statement.
Answered by Damian Collins
In March 2021, the Gambling Commission launched an investigation into BetIndex, the operator of Football Index. This has now concluded and resulted in the revocation of BetIndex’s licence to operate.
Following information received from the administrators and the Gambling Commission, the Insolvency Service has confirmed that the conduct of Betindex Limited’s directors is currently being investigated by them. The progress and outcome of the investigation will depend on the evidence obtained. It will not be possible for the Insolvency Service to comment on the investigation while it is ongoing.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if her Department will make an assessment of the potential merits of offering non-financial redress to people affected by the collapse of BetIndex, the operators of Football Index.
Answered by Chris Philp - Minister of State (Home Office)
The Government appreciates the significant impact that the collapse of the novel gambling product Football Index had on former customers. We recognise the frustration and anger that this situation has caused and the hardship that some people have suffered as a result. However, 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. We are not aware of requests for non-financial redress or what form that might take.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps his Department is taking to provide redress for consumers that have experienced investment losses due to (a) the collapse of BetIndex, the operators of Football Index, and (b) other regulatory failures.
Answered by Chris Philp - Minister of State (Home Office)
The Government appreciates the significant impact that the collapse of the novel gambling product Football Index had on former customers. We recognise the frustration and anger that this situation has caused and the hardship that some people have suffered as a result. However, 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. We are not aware of requests for non-financial redress or what form that might take.
Asked by: Sarah Owen (Labour - Luton North)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if she will provide redress to the people affected by the collapse of BetIndex Limited, the operators of Football Index.
Answered by Chris Philp - Minister of State (Home Office)
I refer the hon. Member to the answer I gave on 3 February to Question UIN 112706.
Asked by: Sarah Owen (Labour - Luton North)
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 provide redress to the people affected by the collapse of BetIndex Ltd, the operators of Football Index.
Answered by Chris Philp - Minister of State (Home Office)
The Government appreciates the significant impact that the collapse of the novel gambling product Football Index had on former customers. We recognise the frustration and anger that this situation has caused and the hardship that some people have suffered as a result. However, 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: Mike Amesbury (Labour - Weaver Vale)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps his Department is taking to ensure the adequacy and effectiveness of the (a) Gambling Commission and (b) Financial Conduct Authority, in the context of the collapse of Football Index.
Answered by Chris Philp - Minister of State (Home Office)
The independent review into the regulation of Football Index, undertaken by Malcolm Sheehan QC and published last September, identified lessons to be learnt and provided recommendations for both the Gambling Commission and the Financial Conduct Authority (FCA).
Both regulators have taken steps to address the issues identified in the report. The Gambling Commission has updated the frameworks 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 Commission has also consulted on tighter rules for the terminology used to describe gambling products.
The Commission and FCA have also worked together to strengthen their Memorandum of Understanding in response to Mr Sheehan’s recommendations, including with new escalation routes and commitments on timeliness of responses to ensure regulatory impasses can not remain unsolved. The FCA has additionally nominated an Executive Director to oversee the relationship with the Commission.
Our Review of the Gambling Act 2005 called for evidence on the powers and resources of the Commission and how it uses them, and we will publish a White Paper in the coming weeks.
Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if she will provide redress to the people affected by the collapse of BetIndex Limited, the operators of Football Index.
Answered by Chris Philp - Minister of State (Home Office)
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.