The Betting and Gaming Council (BGC) has distanced itself from the Gambling Commission's involvement in the Football Index saga.
Following a recent call for an independent inquiry into Football Index from UK Government Ministers, the BGC has responded with a statement.
Football Index appeared to be on the rise in recent years, spending on huge advertising campaigns, but this year went into administration before losing its Gambling Commission licence.
The operator abruptly announced an 80% reduction in dividends and many have accused of it being a pyramid or ponzi scheme, with player losses estimated to be in the tens of millions if not more.
The BGC, however, has distanced itself from the Gambling Commission, of which CEO Neil McArthur recently resigned, claiming it was not made aware of the regulator's prior investigation into the firm.
Once it found out about the suspension of its licence (with Football Index by then already having gone into administration) the BGC says it immediately suspended the company's membership.
A spokesperson for the Council said: “We strongly welcome this independent review of the regulation of Football Index, up to the point where its operator’s licence was suspended in March.
“Following the suspension of BetIndex Ltd’s operating licence by the Gambling Commission last month, we immediately suspended their membership of the BGC.
“We have been concerned about reports that the Gambling Commission was made aware of issues surrounding Football Index’s business model as early as the start of 2020, something the BGC was not made aware of at the time.
“The top priority remains consumer welfare and we hope that the inquiry leads to vital lessons being learned for the future.”