Youbet.com Inc. has formed a trust account with Comerica Bank to alleviate concerns about the vulnerability of customer funds on online wagering sites.
The Players Trust was established and fully funded in February and will offer "the highest possible level of protection" for customers wagering accounts, according to a press release issued by the company on Thursday.
"To the best of our knowledge, this is a gaming industry first and we're proud to offer it free to our customers," said Chuck Champion, chief executive officer of Youbet.com. "The Players Trust meets the toughest security criteria of federal and state regulators by guaranteeing the safety of customer funds. The Players Trust reassures the customer that their online accounts at Youbet.com are segregated, secure, and insulated from outside claims."
Garry W. Sproule, chief financial officer for Youbet.com, said the company has never commingled customer funds with other bank accounts, but that there is no regulations against the practice.
Roger Licht, vice chairman of the California Horse Racing Board, endorsed the move, saying "I am very happy to see that the industry, and particular Youbet, is taking steps to give the consumer additional confidence in the pari-mutuel system."