Caveat emptor but embarrassing to have as a sponsor
Embarrassing?
We should be used to this kind of publicity by now.
888 was hit with a record fine in 2017 for failing to protect vulnerable punters; that fell bang in the middle of the sponsorship deal we had with them.
And then the sponsors directly prior to Football Index, Betbright, the firm part owned by Rich Ritchie, former head of Corporate Banking at Barclays, had to be bought out part way through the sponsorship after they hit liquidity problems.
This latest problem is a flaw in the actual product; there is no problem if you want to withdraw any funds from The FI Platform, provided they have not been invested in any of the virtual shares, if that is what you can call them.
The problem is in the liquidity of the market; there is not problem buying a share, the problem arises when you want to sell it; there are no takers at the moment, which means you are stuck with your "investment".
I cannot believe that anyone who purchased any shares believed for one minute that they could sell them back to the market (ie, FI) once their interest had waned - it just does not work like that.
The Stock Market does not buy back shares from punters who are stuck with them, they have to find a buyer; the Stock Market does not have any problems with liquidity though - not yet anyway, Boris has plenty of time to correct that omission.
Caan Berry, a very successful Sports Trader, flagged up the issues a good while ago; the worrying aspect from my perspective is not that his observations have come true, its the systematic abuse he has been subjected to since the problems came to light.
