IS FOOTBALL INDEX GAMBLING OR AN INVESTMENT??



  • Is FI a gambling site or an investment?  FI uses terms such as shares and futures implying it is some sort of a financial investment in the same way the various stock and derivatives exchanges globally are.  However, that is where the similarity ends.  One of the main reasons for this is regulation.  FI is not regulated by a financial regulator in the same way every stock/derivative exchange is.  If it was, based on the various issues I've seen, inaccurate information, unclear announcements etc. it would not maintain that authorisation for long.  Financial regulators would not allow such issues to go unpunished, withdrawing authorisation being the final sanction.

    Similarly, there is no regulatory environment dictating how investors and other market participants can operate.  The financial markets have very strict market abuse and insider dealing legislation meaning that activities such as "pump and dump" (which is illegal in the financial markets) is tolerated on FI with no penalties imposed on those involved.

    This lack or regulation issue may become more significant if, for example, the index grew massively and those involved in the football industry (players, clubs, journalists, agents, etc) could see ways of manipulating the market for their own benefit.  Not beyond the realms of possibility?  A whole new type of regulation would need to be drawn up to police this, which frankly I cant see happening.

    To me, FI will never become an investment, it is and will remain purely a gambling site.  Just wondering what other peoples thoughts are?



  • It's a form of gambling.



  • @NewUser277283

    From an official standpoint it is gambling and is listed and registered as such. It is packaged as a 'stock market' because it resembles one in some of its characteristics but nobody, certainly not FI, claims that it is actually a stock market.

    If we ignore the legal meaning of these words then you could argue that it is investing, just as you could reasonably argue that investing in stocks is gambling.



  • I consider it low risk gambling, with a decent return possible if you play things right. For me, its also a hobby. If you have a hobby that makes you a bit of money then all the better IMO. The day you NEED to make profit is the day to stop.

    When people think of gambling, you think of roulette, accumulators etc. That is high risk gambling and I rarely take part, but this in my opinion is low risk and with some knowledge you can have the odds in your favor, rather than against you with traditional gambling,.



  • @Specksynder said in IS FOOTBALL INDEX GAMBLING OR AN INVESTMENT??:

    @NewUser277283

    From an official standpoint it is gambling and is listed and registered as such. It is packaged as a 'stock market' because it resembles one in some of its characteristics but nobody, certainly not FI, claims that it is actually a stock market.

    If we ignore the legal meaning of these words then you could argue that it is investing, just as you could reasonably argue that investing in stocks is gambling.

    A few years a go a had a dabble in AIM, buying penny stocks. Now that was gambling! This IMO is far safer!



  • Investment is just a fancy way of saying gambling. Just because people walk round the stock exchange in a suit, what they're doing still involves risk vs reward, same as the bloke sat in Ladbrokes in his tracksuit with last night's kebab down his top.



  • @Yellow

    Not really...

    The difference is, you're buying something when you are investing. Futures might look like Shares when you squint, but you have no actual ownership of Harry Kane ;)

    FI is gambling.



  • Regarding your point about players, agents, managers getting involved... FI is gambling and as such anyone associated with football is prohibited from trading on the Index. It would be viewed by the FA in exactly the same light as Joey Barton, Paul Scholes etc placing bets on certain teams to win.



  • Gambling, says it on the tin.



  • 100% gambling, as FI specifically state themselves.

    As others have said though, it's (in theory) at lot lower risk than actual gambling.



  • It is gambling but with the traits of investing and you need an investment style approach rather than hoping a 1,000-1 ACCA comes in.



  • @Dan-The-Man said in IS FOOTBALL INDEX GAMBLING OR AN INVESTMENT??:

    @Yellow

    Not really...

    The difference is, you're buying something when you are investing. Futures might look like Shares when you squint, but you have no actual ownership of Harry Kane ;)

    FI is gambling.

    When you buy a future on FI you are buying a 3 year bet, so although intangible, you are still buying something.

    You could spend money investing in Debenhams. You could also spend money on FI gambling on Sean Longstaff. Both involve risk and reward.

    Debenhams go into administration...whoops...bad investment.

    Longstaff breaks his leg...whoops...bad gamble.

    In both instances, you could get done over by Mike Ashley.

    My point being that FI is gambling, but so is investing really, just at a different risk level and over a different time period.



  • When you invest on the stock market you are betting that those shares go up in value, the market on whole tends to go up over time but each share you buy is in itself a gamble.

    There is always going to be a legal difference between FI and the stock market. But investing by nature is a form of gambling.



  • @Vespasian32
    That means buying shares in a company is a form of gambling.. .

    I see it as investment based on knowledge and knowhow of football as well as how FI works.. .



  • @Zola25 it's gambling... That's why we don't pay tax on our winnings...(it's also why you can only hold shares for 3 years).

    Investing in a company through a stock market... Completely different regulations



  • @Yellow Until the last sentence, I assumed we were on an "Ashley out" march! :)



  • I think FI is absolutely in its own category, for one reason - all the participants (traders) are constantly engaging with one another on a regular basis (twitter etc. but particularly this forum) and constantly offering advice as well as divulging their own strategy or tactics.

    All of this has some kind of effect (could be major or could be minor) on our "bets" unlike if Ladbrokes had a forum (there could be no influence on the outcomes there).

    At present, the opportunity to manipulate the market here is FRIGHTENING and I think we witnessed it with the Pogba price drop / subsequent recovery earlier this week.

    I mean, a few threads on here have set up WhatsApp groups (I'm not in any). All it takes is one member to suggest everyone to market list player X and the price will tumble. Then post a few "panic" threads on here and BOOM your player is now at nice price to buy a few more and then unlist your shares.



  • @Vespasian32
    I see. They keep 2% thats a tax for me : )



  • @Vespasian32

    What happens after 3 years?



  • @Zola25 they are worth nothing... I believe they just get wiped from your account with 0 compensation. So you need to keep an eye on when you buy the shares and have a plan to sell before they expire!

    I think FI are working on a way of notifying you when shares are close to expiry... But at the moment that isn't in place. Not an issue for me... I joined less than 6 months ago


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