Football betting trading operator Footstock has surrendered its UK gaming licence and terminated its operations, just two weeks after competitor Football Index’s licence was revoked by the UK Gambling Commission (UKGC).
Operating on a similar premise to Football Index, Footstock incorporated a ‘playing cards’ feature into its trading platform – reminiscent of the popular panini trading stickers game – in which players would compete to build their squad by winning and trading cards, with high premiums attached to the best players.
Footstock model saw players ranked into five classes based on their overall performance, with its player pricing mirroring standard fantasy football dynamics in which the best performing players became rarer by increasing in value.
Surrendering its licence, Footstock stated that its business had been shaken by recent events, which had resulted in significant setbacks.
The start-up was forced to cancel its Seedrs crowd-funding campaign and has lost further support from valuable partners ‘pausing corporations’. As a consequence of these circumstances, the operator has entered the ‘German equivalent of UK administration’.
“These unprecedented circumstances have crushed our company in this crucial period of growth. But without funding, Footstock cannot survive. Over the last few days, we tried incredibly hard to find a solution that allows us to stay operational.” Footstock’s statement read.
The operator continued, assuring customers: “Over the coming weeks, we will continue to consult with our professional advisors and keep you informed on the next steps as soon as we are able to, including information about your cash balances.”
The aftermath of Football Index high profile collapse has been widespread, with UK betting’s governance and licensing placed under the media and political spotlight – as disgruntled customers took to social media platforms citing the loss of millions of pounds.
Football Index’s demise has prompted extensive criticism of the Gambling Commission, with many arguing that the regulatory body had acted too late in its handling of the situation, having suspended the firm’s licence only after it had entered administration.
Last week, the Gambling Commission issued a further response to legal precedents of Football Index administration in which company auditors had established a ‘trust account’ to prioritise customer compensation.