ALISON Thewliss has demanded urgent action from the UK Government over collapsed betting company Football Index, with customers left out of pocket by £3000 each on average.
The firm had its licence stripped in March last year by the Gambling Commission and was forced to enter administration.
It has been estimated that customers collectively have over £90 million in open stakes trapped in the platform following its collapse – leaving average losses of around £3000 per customer.
In April 2021, a review into how the firm's activities were regulated was announced, and a scathing independent report was published last September.
A debate was held on Tuesday on the impact of the collapse and Glasgow Central MP Thewliss said the UK Government must ensure the customers affected are compensated for.
She said: “The Government have been tiptoeing around the issue of Football Index for over a year now.
"Constituents in Glasgow Central have contacted my office and explained the distress they felt, having invested significant money into the company. They now feel completely betrayed by the lack of support following the collapse, and frustrated by the lack of action by regulators.
“A support package must be put in place for victims of the scandal, particularly given the precedent set by the UK Government on the London Capital and Finance failure. It is entirely unfair that those who continue to have money locked away in the accounts of the now-collapsed firm are being left in the dark.
“There remains a real worry that scandals such as Football Index could be repeated unless action is taken by the Gambling Commission.
"The Government must acknowledge the recommendations made by Michael Sheehan QC and implement these as soon as possible.
“I am deeply disappointed that the minister [Nigel Huddleston] didn’t recognise that the Football Index scandal isn’t about people being compensated for gambling losses - it is a clear failure in regulation. On that basis, compensation should be due to those that have lost their life savings to a government-regulated Ponzi scheme.”
The Football Index website allowed 'investors' to place bets on footballers and 'dividends' were paid out depending on their performances, with their value increasing along with their 'share price' if they played well.
A Football Index Action Group has been created by campaigners in an attempt to win back some compensation.
Customers have questioned whether the government would compensate them directly, but this seems unlikely after government minister Nigel Huddleston - Under-Secretary of State at the Department for Digital, Culture, Media and Sport - said it would not be appropriate for public funds to be used to compensate the users of Football Index.
