Jersey Gaming Commission Blacklists Football Index Founder Adam Cole

Posted on May 31, 2022 at 7:29 am.

Last updated on: May 31, 2022, 11:14 am.

Football Index, once a rising star on the UK gambling scene, collapsed in a fireball and burned to the ground in March 2021. The man proven unfit to run a gambling operation, Adam Cole, now finds himself in prison at the Jersey Gaming Commission (JGC). blacklist.

Adam Kohl
Adam Cole when he ran the Football Index. He has already received a ban from the UKGC for the platform outage and is now blacklisted by the Jersey Gaming Commission. (Image: This is money)

Cole may no longer hold a position or engage in any activity in any business regulated by the Commission. However, he can apply to the JGC to change or cancel his order. The appearance of Cole’s name on the blacklist dates back to April 6, although the commission has only now added it.

The JGC suspended Football Index’s license in March last year. At the time, the commission launched an investigation into how the soccer trading platform suddenly went bankrupt and lost over $125 million in user funds. The Commission found BetIndex, its parent company, unfit to hold a Jersey license and revoked its license in October.

Cole at the investigation center

The JGC examined not only BetIndex but also Cole’s ability to run a business. As a result, it came to the conclusion that he should not be allowed to participate in or collaborate with gambling businesses.

Football Index went bankrupt in March 2021 after BetIndex announced it was going into bankruptcy. This led to the UK Gambling Commission (UKGC) suspending their license.

This comes after Football Index announced that Cole would be stepping down from his position as Football Index CEO at the end of 2020. This was part of a larger “reset” of the company’s operations, indicating potential financial problems.

The Department of Digital, Culture, Media and Sport (DCMA) then took a close look at the company. The UKGC was found to have been lax in its oversight of the company, adding to an already deteriorating situation. This was the main reason Neil McArthur resigned as head of the regulator.

The DCMA accused the UKGC of being too slow in regulating the Football Index. It questioned how the Commission could not have known that an operator was offering a product for which it may not have been licensed for more than three years.

The UKGC conceded they may have dropped the ball but defended their decision not to suspend the license earlier. It claimed that the company would have collapsed more quickly if that had been the case. On the other hand, it could have prevented users from losing millions of dollars.

Doomed from the start

Football Index allowed users to trade and buy “stocks” of football players. These stocks were worth dividends based on how players performed on the field.

This system was flawed at its core. It was impossible for the system to accurately value stocks (bets) when the company had to pay dividends on every bet for a player’s entire career.

This attempted imitation of a traditional investment product had consequences for both Football Index and users. Depositing large sums of money and putting all or most of it into stocks was the only way for users to earn profits – cash balances could not yield dividends. This meant that only a small fraction of the money users deposited with the site received protection if the platform went down.

Football Index ignored warnings it was nothing more than a Ponzi scheme. As a result, users paid the ultimate price for their efforts and lost everything they had invested.

Leave a Comment