We have taken the decision to disclose some supplementary detail on the background to our regulatory action due to the number of customers involved in our BetIndex inquiry. This update focused on the areas where concerns about our strategy have been received.
A Remote General Betting Standard Real Event licence was issued on 9 September 2015 to BetIndex Limited. The operator already has a Jersey commission’s licence.
The current product of BetIndex permits customers to make bets (shares) on footballers’ potential results. A bet takes 3 years and it increases returns over that period. After three years of betting, consumers forfeit their stake and have the right to further dividends.
The product has grown to encourage consumers to buy and sell bets with demand-dependent rates. We also recognised that this substance includes components that are betting in nature and that thus are not known as gambling and are thus not subject to our control.
Funds at risk
BetIndex informed early in March of intentions to suspend itself in order to reorganise and relaunch papadewa online. Our reservations about this timing and the consumer funds situation prompted us on 11 March 2021 to revoke the licence. We have been working alongside the Jersey Regulator, which is also licenced by BetIndex. From the context of our experience, a suspension will itself cause or accelerate an operator’s financial downturn and jeopardise customer funds.
It’s why we’re still looking at whether there are any moves that can still achieve the right regulatory results without escalating a company’s financial collapse and fix the threats that customers pose. We would also only suspend if this is the only way to obtain the correct regulatory consequence and in reality, the statute allows us to exercise certain powers.
We were persuaded that the only regulatory alternative open to us was a suspension on 11 March. Although our research constantly reflects on ensuring that the licensee is fair to customers and keeps them completely updated of all the improvements that have been taking place.
Information for customers affected
BetIndex has a trust account designed to keep dividends payable to successful clients. Our petitioners told us that BetIndex has halted transfers from this account and that the entitlements of customers can be determined and guidelines are available awaiting an appeal to the Court. BetIndex needs the Court’s guidance as to whether those funds are adequately dealt with. We know that these legal procedures are in place.
The Commission’s pledge is that the Trust Account assets will not be allocated by any borrower other than consumers. It is nevertheless probable that it is capable of distributing directly to consumers situs taruhan sportsbook, if any, and not to the Commission, according to the orders of the Court.
Whilst the details we will disclose when regulatory inquiries are in progress will be limited, according to the UKGC, the BetIndex substance includes elements that are subject to Commission regulations and can be considered as betting. Product components which are not deemed to be gambling are not the responsibility of the regulatory authority.