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ARTICLE · 11 AUGUST 2021

Application Of Post Insolvency Funds?

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BetIndex maintained a separate client account for its gambling customers. On administration around £4.5m was in the account.

United KingdomInsolvency/Bankruptcy/Re-Structuring
Jamie Wheatley
Jamie Wheatley

BetIndex maintained a separate client account for its gambling customers. On administration around £4.5m was in the account. The administrators applied for directions as to the way in which amounts due to each customer are calculated.

BetIndex's business model meant that contracts between customers and BetIndex remain in place so that customers continued to be entitled to ongoing winnings for up to 3 years after BetIndex stopping trading. Following administration, customers' winnings continued to accrue at a rate of about £500,000 per month.

The questions arising on the application were:

  • Should trust assets be distributed now or when all rights to customers' winnings expire in 3 years' time?

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