Football Index

So today I learnt this is a thing, it set off alarm bells just reading about what the service is.

Given its a betting website surely these people ‘investing’, realised that it’s not investing, it’s gambling. You stand to loose whatever you put in, with not much recourse to funds should it go wrong?

Was aware of Football Index some time ago, and almost tempted due to the gamification of its workings.

Glad I didn’t go for it in the end :grinning_face_with_smiling_eyes:

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I actually thought it was some kind of stock market thing to start with. I was thinking didn’t even know we had a stock market for stuff like that.

Found the site and was like ah gambling not investing.

I set up an account but didn’t put any money in it.

I’m not in the know enough, the same as most normal people, to be able to make money. If you know a big story is going to break and you can be ahead of the game then you can make big money and there’s zero regulation ion it.

From the research I did, some people were making a lot of money from it, it did seem a bit too good to be true.

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Me and my brothers made a bit of money but at the end of last year cut and run and put the money in the stock market instead. Feel like we dodged a bullet.

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Is it regulated? If it’s not then why would anyone invest in it?

It’s not investing. It’s gambling.

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It’s gambling and overseen by the gambling commission, no investing takes place.

Looks like it’s about to fold

Where did the money for the ‘dividends’ ever come from?

With a betting exchange, it’s clear where the money paid to winners comes from - from losers

With actual shares, it’s clear where the divis paid to shareholders comes from - from the profits of the company the shares give part-ownership of

With this thing, the ‘dividends’ paid to ‘share’ holders comes from… ???

That is going to be the key question the Gambling Commission is going to have to answer.

I’d expect them to say that the dividends are paid from company profits, but, who knows :man_shrugging:

New members. It’s basically a Ponzi scheme

Surely they also took a cut of each transaction with the aim being a sustainable % of that going towards dividend payments. But to make it look enticing and get it off the ground they needed to do dividends at a loss but then didn’t have a plan to get back to parity/ profit and didn’t deal with it for too long and then needed to do something drastic rather than notching them down slowly over time.

The Gambling Commission have released a statement

https://beta.gamblingcommission.gov.uk/news/article/information-notice-suspension-of-licence-betindex-limited

This quote makes you wonder what actual checks they do once they hand over a licence, seemingly not much.

The suspension follows an ongoing section 116 review into the operator, as we had concerns activities may have been carried on in purported reliance on the licence, but not in accordance with a condition of the licence, and that Football Index may not be suitable to carry on with licensed activities.