So last week’s low point came with Irish based spread firm WorldSpreads go under owing customers £13million, yet another company that appears (at this stage in time) to have not taken proper ring fence procedures to protect client funds. KPMG have been appointed as the administrator to clean up the mess, and 70 staff have found themselves unemployed. Yet again the financial press has been quoting “financial irregularities”.
WorldSpreads not just a one-off
The list of gambling firms that fold owing punters money seems to be ever growing, and in my opinion is a blight on our sector. Over in the world of poker former giants Full Tilt are closed for business with thousands forlornly hoping to get their deposits back.
Earlier this year I blogged about Centaur (always a shaky business model) crumbling away, other firms like EuroLinx, LuvBet, spring to mind on the sports bookmaker side of the industry.
What amazes me is that despite attempts at regulation there doesn’t seem to be an end in sight. In my day job I work for a supplier to the betting industry and there are several companies who we don’t work with because the strongest indications are that any invoice won’t be honoured, yet these companies still have people depositing and gambling twice. I say gambling twice as the first wager is on the bet winning, the second punt is on whether the bet will get paid out!