While most companies were gearing up to face the millennium bug, Andrew Black and Edward Wray were planning their own attack on the multi-billion pound gambling industry. They developed the worlds first betting exchange platform and in 2000 launched Betfair. Unknown to many betting companies this was to change the face of gambling as they knew it.

The website allows individuals the opportunity to place and take up bets from other individuals and works on a similar concept as a stock market. This gives greater power to a person who can now choose whether they would like to bet that an outcome will happen (back) or that it won't happen (lay). As it is an exchange you can choose your own odds and as long as someone is willing to take you up on the odds you’re in the game.

Over recent years the website has won numerous awards for its revolutionary technology and business model including the prestigious Queens Award for Enterprise in 2003 and again in 2008. Today, the company operates in multiple locations across the world with one major exception being the US due to its regulatory environment. In 2008, the company turned over £240 million an increase of 29% year on year, a sign that they are robust in the current climate.

So what does the future hold for Betfair? Despite a worsening operating environment, Betfair’s Chairman, Edward Wray, suggests that they will meet their growth plans in 2009. However, as individuals start to feel the pinch they may cut out their hobbies such as leisure gambling, which will impacts Betfair’s bottom line. All in all Betfair’s market position should see them through these turbulent times and well into the future.