WBX
 | |
| Company type | Public |
|---|---|
| Industry | Online gambling |
| Founded | 2002 |
| Headquarters | Covent Garden, London, United Kingdom |
Key people | Malcolm Gray (CEO) |
| Products | Bet Exchange, Mobile Gambling |
| Website | wbx.com |
World Bet Exchange (WBX) is a person-to-person betting exchange based out of Covent Garden, London in the United Kingdom and licensed and regulated by the Gambling Commission. Founded in 2002 by Malcolm Gray, WBX.com was officially launched on November, 25th, 2006. In an interview prior to launch, Gray was quoted as saying: "In an industry where the current market leader has a virtual monopoly, we believe the arrival of WBX will put every exchange player back in control. We will continually seek to offer a vibrant, exciting and innovative alternative to Betfair, and we hope this will promote healthy rivalry."[1]
Company Structure
World Bet Exchange Limited and WBX Members Funds Limited are wholly owned subsidiaries of WBX Holdings Plc. WBX Members Funds Limited, which does not otherwise trade, is a company that was established in order to safeguard members’ funds in a separate bank account. The funds are held subject to a trust deed and quarterly, external audits, which are published on the WBX website.[2] This company structure renders improper use of members' funds illegal, avoiding the pitfalls noted in the Sporting Options incident.
Racing Sponsorship
Prior to the launch of WBX.com, the company was already the fourth largest sponsor of horse races in Britain.[3] Coinciding with the November 2006 launch, WBX founded the Triple Crown of Hurdling to complement their sponsorship of the Newcastle Fighting Fifth Hurdle at Kempton Park Racecourse. When asked about the Triple Crown, Malcolm Gray was quoted as saying: "The WBX Hurdling Triple Crown will bind together those three races (Fighting Fifth Hurdle, Christmas Hurdle and Champion Hurdle) to form a championship series which will finally offer horse racing fans a true measure of the greatest hurdlers in National Hunt racing."[4] If any horse is to win all three legs of the Triple Crown, a £1 million bonus would be awarded and divided amongst those involved with the horse.
Industry Status
Like other rivals to Betfair, WBX has attempted to secure new customers by charging less commission.[5] Based on the findings of their own study, the company boldly stated that its members would have paid 35% more commission had they done their betting at Betfair.[6] WBX also moved to capitalize on Betfair's September 2008 decision to impose a Premium Charge on winning bettors.[7][8]
WBX claims that its members wagered over £500 million against one another in 2008, and in excess of £1 billion since its inception in 2006.[9] However despite this reported trading, WBX posted a net loss in 2008.[citation needed]
Notes
- ^ New Exchange WBX is finally ready to launch, racingpost.com, 25 October 2006, accessed 24 April 2009.
- ^ WBX Quarterly Assurance Statements
- ^ WBX enter sponsorship debate, sportinglife.com, 26 March 2007, accessed 24 April 2009.
- ^ Fighting Fifth to launch the £1m rollover, icnewcastle.icnetwork.co.uk, 28 October 2006, accessed 24 April 2009.
- ^ Record turnover for WBX on six-month anniversary, egrmagazine.com, 29 May 2007, accessed 24 April 2009.
- ^ WBX.com Launches WBX Mobile, journalism.co.uk, 20 February 2009, accessed 24 April 2009.
- ^ WBX Moves to capitalize on Betfair Premium Charge, betting-business.com, 2 October 2008, accessed 24 April 2009.
- ^ Betfair bosses deny being too "greedy", racingpost.co.uk, 11 September 2008, accessed 24 April 2009.
- ^ WBX.com Launches WBX Mobile, journalism.co.uk, 20 February 2009, accessed 24 April 2009.
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