Football Index Collapse

Debate between Aaron Bell and Nusrat Ghani

Tuesday 7th June 2022 Westminster Hall

[Aaron Bell (Newcastle-under-Lyme) (Con)]

It is a pleasure to serve under your chairmanship, Ms Ghani, however brutal the time limit may be. I congratulate the hon. Member for Blaydon (Liz Twist) on securing this important debate and setting out the case so clearly—I will not do so again, given the time limits. I draw the attention of the House to my entry in the Register of Members’ Financial Interests, and let people know that I worked for Bet365 for 15 years before I came to this place. I have long experience of the Gambling Commission, and while I was in that role, it was frequently behind the curve and asleep at the wheel, which is one of the accusations levied at them regarding Football Index. In a period during which the gambling landscape was incredibly innovative, too many firms went bust with ante-post liabilities, too many punters lost money, and there was too little redress for people. Sadly, that is again the case today.

[Ms Nusrat Ghani (in the Chair)]

Order. Mr Bell, because some people have left the room, we have now increased the time limit to three minutes for you.

[Aaron Bell]

That is incredibly kind, Ms Ghani. Thank you very much.

This is a particularly egregious case. Five constituents have written to me about it; I will not name them, because I do not have their permission to do so, but a number of them have lost thousands of pounds. In this case, the Gambling Commission failed to identify the key features of the product, which then changed while Football Index was running it, and the Gambling Commission did not seem to notice. Andrew Rhodes, who I believe is a good man—I will come to that in a bit—said in his response that the Gambling Commission does not believe it licensed a Ponzi scheme. That may not be the case, but he also said,

“BetIndex was not recruiting enough customers to compensate for depleting its financial position”—

as it did by increasing the dividends—

“and ultimately collapsed as a result.”

If such a company is not recruiting enough customers to pay out the ones it already has, that looks like a Ponzi scheme to me.

It is clear that the ultimate blame lies with the operator. We have already heard a call for the directors be held to account, which I absolutely support, but we must be better at protecting people, as a Government and as a state. As I said, I have five constituents involved. I support what the hon. Member for Luton North (Sarah Owen) said about people wanting restitution and justice as well as compensation.

I am also very concerned that these people are vulnerable in other ways now. Football Index is finished, but there are other online products out there that, in my opinion, share some of the same characteristics. They are attractive to young men, in particular, because they look like get-rich-quick schemes. I am thinking of the crypto space and the various coins that are designed to be pumped and dumped. If people get in at the right moment they can make a profit, but if they get in too late they might lose their life savings.

Similarly, there is this ridiculous craze for non-fungible tokens, which, to their eternal shame, many football clubs and sports stars have endorsed. This is completely deplorable. I do not think those are regulated at all. Perhaps we can do something about that through the Online Safety Bill. I know that the Gambling Minister is busy with the Online Safety Bill Committee today, and I welcome his substitute, the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), who used to be my Whip.

This situation mostly affects young men. I believe we owe them a duty of care. My five constituents—all young men—believed, because they saw the kitemark, that the Gambling Commission understood, and almost endorsed, the product. Obviously it did not. If we license these sorts of products, then we ought to be standing behind them. We are not standing behind them now, as they are struggling to get any sort of compensation at all, although there is obviously an administration process going on.

I am sure that everyone here will have constituents who have suffered as mine have. We owe it to them to get to the bottom of this and give them some restitution. I will yield my final 20 seconds.

[Ms Nusrat Ghani (in the Chair)]

Beautifully done, Mr Bell.

Oral Answers to Questions

Debate between Aaron Bell and Nusrat Ghani

Thursday 30th January 2020 Commons Chamber

[Aaron Bell (Newcastle-under-Lyme) (Con)]

4. What steps his Department is taking to improve bus services in (a) Newcastle-under-Lyme constituency and (b) north Staffordshire.

[The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)]

Buses are at the heart of the Government’s transformative agenda and, with that, we have a new £220 million fund to make sure buses are working across our urban and rural areas. We are putting together the UK’s first long-term bus strategy.

[Aaron Bell]

Newcastle-under-Lyme is one of the largest towns in England without a train station. We also suffer from very heavy congestion on the roads into Stoke-on-Trent. Does the Minister agree, therefore, that Newcastle-under-Lyme, and north Staffordshire more widely, should be at the front of the queue for a new Superbus funding settlement?

[Ms Ghani]

My hon. Friend has made a stellar pitch for the new Superbus fund both today and previously in a Westminster Hall debate. It would be remiss of me to say anything at the moment. All the proposals are being assessed, and I assure him that the announcement will be made very soon.