Analysis: What lessons can be learnt after Football Index collapse report

The core of the issue was the unsustainable dividend model, which led to a drastic reduction in the amount customers could earn per share. Football Index reduced the maximum payout from 33p to just 6p, triggering a sharp decline in share values. This change, coupled with the company’s failure to properly manage its finances, led to a massive loss for its users. At the time of its collapse, BetIndex, the operator of Football Index, was found to have significant discrepancies in its operations, including not informing the Gambling Commission about the nature of the product and changes to its operations. The review by the Department for Digital, Culture, Media & Sport (DCMS) criticized the Gambling Commission for failing to properly scrutinize Football Index when it first launched in 2015. The report found that the Gambling Commission allowed the platform to operate under the wro ng type of licence and did not respond swiftly enough when issues arose. Moreover, the Gambling Commission did not properly collaborate with the Financial Conduct Authority (FCA), which could have helped prevent the crisis. As a result, there were major gaps in the regulatory framework for this novel product.