Nigel Huddleston rejects calls to compensate Football Index users

Sports minister and Mid Worcestershire MP Nigel Huddleston said it would not be appropriate for the Government to use public funds to compensate losses resulting from the collapse of a gambling company.

It comes following the collapse of Football Index, a gambling company where investors could bet on the success of footballers, which went into administration in March 2021.

MPs in a Westminster Hall debate called for the Government to step in, citing “failings” by the Gambling Commission and the Financial Conduct Authority (FCA).

SNP MP Ronnie Cowan (Inverclyde) claimed customers had lost a total of around £90 million.

Mr Huddleston said: “We do not think it would be appropriate for the Government to use public funds to cover losses to individuals resulting from the collapse of a gambling company.

“And consumers staking money on gambling is not the same as placing money into other things such as savings products.

“And furthermore the Gambling Commission does not have any statutory powers which would enable it to offer redress for losses suffered as a result of a gambling operator collapsing.”

He added that the FCA and Gambling Commission have acted on recommendations made by a Government-commissioned expert review to “ensure that a similar situation like this does not happen again

Among the changes being made, he said the Gambling Commission has updated how it assesses risk “so that novel products are properly considered”, and that the two bodies are taking steps to better work together. “Some changes have happened and are happening,” he said.

Mr Huddleston said: “Following information received from the administrators and the Gambling Commission, the Insolvency Service has confirmed that the conduct of BetIndex’s directors is being investigated by them.”

He added: “Be in no doubt of the seriousness with which the Government takes all the matters highlighted today, and the gambling review will indeed be announced in the coming weeks.”