Administrators in BetIndex , operators of the sports betting platform Football Index , initiated the process of allocating funds to current and former users of the platform at today's hearing in Jersey Royal Court.
The formal start of the allocation of funds has started
Bankruptcy company Begbies Traynor , who was appointed to manage the failed sports betting business in late March, began processing customer claims in Football Index against the company operating the platform in April.
As confirmed by BetIndex in a statement to its former clients last week, the first hearing was held on May 10 to deal with the distribution of the company's remaining finances, 4.5 million pounds , currently held at player protection trust account sports betting platform.
The official start of the distribution process Begbies Traynor with the difficult task of properly determining which Football Index client is entitled to some of the funds, taking into account many factors, including unpaid dividends and claims for lost funds.
Based on for bets invested in players, many of the bets still active on the platform would owe dividends, so the three administrators Richard Toone, Adrian Hyde and Adrian Rabet will first need to establish a date for these payments to be calculated, any date after the Football Index has been suspended. until the bets in the mix expire.
In addition, Begbies Traynor will need to determine the value of claims from players who have lost funds in their accounts due to the company and weigh these claims against the value of the dividends due. It will also need to identify the customers who will receive the funds from the account.
Of all the funds available, approx £ 3.2 million is currently accountable to customers, leaving approx 1.3 million pounds surplus to be distributed between players who have money in players' accounts and still active bets.
Client funds protected against claims of other creditors
Contrary to the claims of the Football Index that individual players' funds were protected from the claims of other creditors, the terms and conditions of the sports betting platform establish that funds invested by customers in players through the exchange do not benefit from this protection.
BetIndex's problems started with the decision to cut dividend payouts on the Football Index from 14p to 3p which led many customers to lose money and then mass withdrawals began, forcing the operator to enter administration while his betting license was suspended by the UK Gambling Commission.
The decline occurred during the Government's ongoing review of the 2005 Gambling Act and became a major concern as everyone pointed the finger at the Commission for 'fell asleep at the wheel' because they are deeply concerned about what happened, government officials announced an investigation into the circumstances surrounding the collapse platform.
Moreover, the registration of Leigh Day law firm by some clients in the Football Index creates more hassle for a subordinate regulator who may also face legal action due to its shortcomings.