SBC News Voice of the Sports Betting Industry
Malcolm Gray, CEO of World Betting Exchange (WBX), has claimed that the firm’s business model is ‘no longer viable’ after the firm shut down its operations earlier this week. The betting exchange announced its closure on Monday, citing increased market competition and compliance costs, although it is refunding its player base and closing all of its markets.
In a corporate communication explaining the company’s decision to shut down its operations, Gray explained: “I have always taken a long view with WBX and believed that we’d become a genuine alternative to Betfair on the strengths of our great platform and commitment to putting every exchange player back in control.
“Unfortunately, the business strategy is no longer viable due to the rising costs of regulatory compliance and levies in the UK, along with the increasingly prohibitive stance of various betting jurisdictions.
“Though I am of course disappointed that WBX is closing, I am proud of my team and the fairness in which the exchange has operated for almost 10 years. Please rest assured that WBX will continue to service its members and affiliates in the same spirit during the wind-down period”
WBX had been operational since 2006, its betting product had been one of the longest serving UK betting exchanges, charging less than 3% commission on winning wagers.
