Gambling Commission interim CEO Andrew Rhodes used social media to clarify the level of regulatory involvement in ongoing proceedings involving the Football Index.
The Football Index, a betting offering that allows players to trade the stock of professional football players like the stock market, was launched in March this year following a massive churn of customers and investors as the company decided to cut its players dividend from 14p to 14p. ceased business. 3p ($0.04).
As a direct result of that decision, many clients lost thousands of pounds overnight and the Football Index went into administration and licenses were suspended by the Gambling Commission.
The Gambling Commission provided an update on the situation at the end of June and said it is in close contact with the BetIndex and Football Index platforms and that the company continues to manage it.
The new update has arrived in the form of a series of statements from Rhodes who visited Twitter to address the issue himself. Rhodes was announced as interim CEO of the board in June after Neil McArthur left.
While there was hope that a corporate voluntary agreement (CVA) could repay customers who suffered losses, Rhodes now said it could not help the gambling commission determine if this was a viable option. regulator.
“I got a lot of very angry and sometimes offensive messages about the Football Index late last night,” Rose tweeted. “A lot of it was similar to the previous messages and, as I always said, I read all of them, even the rude ones, and respond to what I think I can do.
“Why no CVA? CVA may or may not occur. It’s not something GC is involved in or won’t happen. Setting up the CVA is between the manager and the potential investor/buyer. When a CVA occurs, it will make an ‘offer’ for the debt the company has. This will be your bet like any other debt. This does not mean that all original shares will be returned. It depends on what you provide. The CVA will then have to apply for a license to operate with us, which we should consider.
“I never said ‘I don’t know’ how much the bet is worth, as one person said. It must be evaluated by an administrator. There are many ways to value debt and many people think that this should be the original equity, but there are several ways to view debt. Realistically, this would be part of a CVA attempt, and without ultimate relief for the company, the debt would have to be assessed as part of the company’s liquidation.”
Rhodes went on to say that he could not comment on certain issues related to the investigation, including the date a review of the Football Index is published.
“A lot of people have asked about individuals, what I know about money flow, what we’re going to do in certain scenarios,” he said. We cannot comment on any real-time investigation or individuals while the matter is ongoing.”
“I also don’t revise assumptions that people think are wrong for the same reason. There are a few things I simply can’t get into at this point. Some ask why the review hasn’t come out yet. I know it’s in the summer, not the GC, but the date hasn’t been set yet.”