Football Index Collapse: Lessons Learned

Debate between Sheryll Murray and Liz Twist

Wednesday 24th April 2024 Westminster Hall

[Liz Twist]

I thank the hon. Member for his intervention. Of course, we could have a whole different debate on the influence of the gambling industry on football—indeed, I am sure that in future months we will have such a debate. But today that link between gambling and clubs and their players, with or without their consent, is being used to attract people to gamble money.

As I was saying, I fear that the product that I am talking about today—KiX—is dangerous and has the potential to bring misery to more people. I therefore urge the Minister to do everything he can to ensure that this platform does not launch without the utmost regulations being in place. To put it simply, that is the very least that the victims of Football Index deserve and we do not want to see more victims being created through new platforms.

I also bring to the Minister’s attention another company—StocksFC. I am told that it has been operating in the crypto space for about a year. Alarmingly, a quick glance at its website and at the Twitter account of its head of marketing shows the dangers of this type of platform. It is clearly masquerading as a stock market and is manipulative in its language, suggesting to people that they are “investing” and sharing the totals of profits made on their supposed investment.

I will add that despite this platform allegedly being a crypto-based platform, there are no entries about it on the blockchain and users in the UK can deposit money straight into its system from their debit cards. I am sure that the Minister will agree that that is deeply concerning and a danger to consumers. Does he know whether the Gambling Commission is aware of this operator and if so, what discussions has he had with the commission to ensure that consumers are being sufficiently protected?

Many victims of the original Football Index collapse are vulnerable and eager to recoup their losses through any means, and I fear that new platforms could prey on their vulnerability. I hope that the Minister will raise these concerns with the Financial Conduct Authority, and that the FCA and the Gambling Commission will work in partnership to ensure that nobody is left victim to an unregulated football stock exchange ever again, consulting with the Football Index action group to learn from the real-life examples that it can provide.

The evidence regarding the regulatory failures that led to the collapse of Football Index is highly compelling. It serves as a reminder that we cannot let anything like that collapse happen again. Meanwhile, victims have long-standing grievances that are yet to be resolved.

People from across the country will now be willing the Government to respond to the new platform of KiX in a serious manner and to review, in full, the evidence that the Football Index action group has sourced and put together. I hope that the Minister will listen to calls from the victims, because that is quite simply the least that they deserve.

Finally, I would welcome any update that the Minister can provide on this subject. At the heart of this scandal is injustice. We need to develop a plan that seeks to compensate victims of the Football Index collapse effectively while working to ensure that any future football platforms, such as KiX, cannot be launched without learning considerably from the lessons of the Football Index scandal.

[Mrs Sheryll Murray (in the Chair)]

I remind Members that they should bob if they wish to be called in the debate.