Collapse of BetIndex Prompts Regulatory Changes

Collapse of BetIndex Prompts Regulatory Changes

The UK Gambling Commission (UKGC) has announced changes to its regulatory scope with respect to the digital gambling products in light of the independent review conducted of the collapse of BetIndex. The review highlighted the need for improvement in a number of areas that affect the functioning of the UKGC as well as the Financial Conduct Authority.

What changes have been announced?

The UK Gambling Commission announced that changes have been made with respect to the factoring of novel products that include the exchange platform model that is part of the football index platform of BetIndex. These changes are to be done while assessing operator risk. The UKGC’s Memorandum of Understanding with the Financial Conduct Authority is also in the process of being strengthened in order to be able to escalate issues that are considered to be issues of importance between the gambling enterprises as well as financial services.

Why have changes been made now?

In 2005, the government in the United Kingdom conducted a review of the Gambling Act. The Football Index declined during the period of review and there was a significant amount of public discussion regarding the oversight of the UKGC with respect to the situation. BetIndex entered administration and the license and membership of the company were revoked by the UK gambling commission as well as the Betting and Gambling Council. The criticism of the UKGC’s oversight came in wake of the collapse of the gambling operator. The result was a launch of an independent review of the gambling regulator by the UK Government. Malcolm Sheehan QC was the leader appointed to review the regulator by the DCMS.

Malcolm Sheehan QC comments

Mr. Sheehan QC commented that with the increasing complexity of product offerings and business models, lines have been blurring between gambling and other types of products such as computer games and financial services and statutory definitions of gambling don’t fit these products. He further stated that actions have always focussed on the protection of the consumers and operators have to be forced to comply with the regulations. However, it would be unfair to say that money would not have been lost by the collapse of BetIndex.

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About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.