UKGC Releases Football Index 'Test Account' P&L Data

Article Content

UKGC Discloses BetIndex Internal Account Data

The UK Gambling Commission (UKGC) has released several internal documents from the collapsed gambling operator BetIndex, trading as Football Index. The disclosure, made in response to a Freedom of Information (FOI) request dated 4 August 2023, confirms the existence of reports tracking the financial performance of so-called "test accounts" and "market maker" accounts on the platform.

This information provides consumers and industry observers with a clearer, albeit partial, view of the internal mechanisms at play before the platform's sudden collapse in March 2021, which resulted in significant consumer losses.

Context: The Football Index Collapse

Football Index operated a platform that allowed customers to buy and sell 'shares' in professional footballers, with dividends paid based on performance. Its administration and subsequent suspension of its operating licence by the UKGC left many customers with worthless portfolios and raised serious questions about the operator's business model and the regulator's oversight.

The use of internal accounts for market-making or testing has been a key area of concern for former customers, who have questioned whether such activities could have artificially influenced market prices.

What the FOI Response Reveals

The FOI request specifically asked for a report that could split out the activity of market maker and test accounts, which had been mentioned in a previous financial assessment. In response, the UKGC released four key documents:

• Profit and Loss Analysis for Market Trader Test Accounts: The existence of this document is highly significant. It confirms that BetIndex was not only operating these internal accounts but was actively tracking their financial performance. This raises questions for consumers about the purpose and profitability of these accounts relative to the main market.
• Production Testing Policy: This document suggests there was a formal, internal policy governing how testing was conducted on the live platform. Its release provides a potential framework for understanding the rules under which these accounts were supposed to operate.
• Football Index Betting Integrity Policy: The disclosure of the company's own integrity policy allows for a comparison between its stated principles and its actual practices, particularly concerning the use of internal accounts that could influence the market.
• Other extracted information: A collection of further documents, the contents of which are not specified by title.

Redactions and What They Mean

The UKGC noted that the release was a "Partial exemption." All personal information, such as the names of individuals, has been redacted from the documents. The regulator cited section 40(2) of the Freedom of Information Act, which protects personal data.

The Commission stated, "there is no strong public interest" in disclosing the personal data of the individuals involved and that it would not be fair to do so. For consumers, this means that while the existence and financial tracking of these accounts are now confirmed, the identities of those who operated them or discussed them in meetings remain unknown.

Significance for Consumers

This disclosure is a critical piece of the puzzle in understanding the Football Index failure. It provides official confirmation that internal, non-customer accounts were a feature of the platform and that their financial impact was being measured by the company.

For consumers researching gambling operators, this case underscores the importance of understanding the complex mechanisms that can operate behind the scenes on novel betting platforms. The release of these documents, even in redacted form, highlights how regulatory tools like FOI requests can slowly bring more information about an operator's conduct into the public domain, long after the event.