International Racing Group Licensed by Oregon Racing Commission to Operate Multi-Jurisdictional Simulcast Wagering Hub
Wednesday November 2, 4:05 pm ET
Youbet Subsidiary's License is First in the Offshore Pari-Mutuel Rebate Industry
WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Nov. 2, 2005--Youbet.com, Inc. (NASDAQ:UBET - News) said today that its International Racing Group (IRG) subsidiary has become the first company of its kind to be licensed by a U.S. racing regulatory body. During a special meeting conducted earlier today, the Oregon Racing Commission (ORC) approved IRG's application for a license to operate a multi-jurisdictional simulcast wagering hub under Oregon state law.
IRG (also known in the trade as Holiday Beach) sought the ORC license to directly allay concerns on the part of some racing industry participants about the lack of domestic regulatory oversight of offshore pari-mutuel wagering companies. The process required IRG to submit a formal operation plan for ORC review, including information on ownership, management, financial resources, account verification and wagering security. In addition, ORC staff inspected IRG's call center in Curacao, and the Commission considered a report from the Oregon Attorney General's office. With the ORC license, IRG's current and prospective track partners and regulators now have the assurance of domestic regulatory oversight of both its domestic and offshore activities.
IRG's license is separate and apart from California-based Youbet's Oregon license to operate a hub for Internet and telephone pari-mutuel wagering. Nonetheless, Youbet's ownership played a key role in ORC's decision to approve IRG's application. As a public company, Youbet is subject to SEC reporting requirements and Sarbanes-Oxley-mandated internal controls, and thus adheres to the highest standards of transparency and accountability in the horse racing industry. In addition, Youbet's management, which is well known for its pace-setting ADW compliance activities, oversees IRG's business programs.
According to Youbet CEO Charles F. Champion, the ORC license benefits IRG, Youbet and potentially the racing industry. "For IRG," Champion said, "licensure should result in opportunities to expand IRG's base of track partners as the company will be the only one of its kind in the industry operating within a domestic regulatory framework.
"For Youbet, the license serves to affirm our commitment to pari-mutuel industry best practices in operational integrity and wagering compliance," Champion said. "In particular, Youbet's independent wagering compliance committee, established earlier this year and made up of outside experts in law enforcement, security, regulation, gaming and financial transactions, was another key consideration in the licensing process.
"Finally, I believe that ORC's action is an important step forward for US racing," he continued. "Now there is a regulated entity in this segment of the horse racing industry that meets the compliance needs of tracks and the demands of customers. Clearly, ORC has once again demonstrated its leadership and appreciable understanding of issues facing the racing business and ADW."
ORC has been a pioneer in the area of account wagering regulation and serves as the multi-jurisdictional simulcast wagering regulatory authority for the nation's leading account wagering companies, including Youbet.
Youbet acquired IRG in June and operates it as a separate legal entity. IRG currently has simulcast agreements with, and legally accepts wagers on, races at more than 90 US thoroughbred, harness and greyhound tracks. IRG only accepts live telephone pari-mutuel wagers from high-volume customers to whom the company offers discount incentives (rebates). Youbet acquired IRG in June 2005 to complement its online and telephonic wagering businesses.
Youbet.com is the largest Internet provider of thoroughbred, quarter horse and harness racing content in the United States as measured by handle data published by the Oregon Racing Commission. Members can watch and, in most states, wager on the widest variety of horse racing content available via Youbet.com's website. They enjoy features that include commingled track pools, live audio/video, up-to-the-minute track information, real-time wagering information, phone wagering, race replays, simultaneous multi-race viewing and value-added handicapping products. The Company's Players Trust(SM) revolutionized advanced deposit wagering by placing player deposits in the custody of a major U.S. financial institution.
Youbet.com is an official online wagering platform of Churchill Downs Incorporated and the Kentucky Derby. Founded in 1997, Youbet is the exclusive provider of horse racing content for CBS SportsLine.com. More information on Youbet.com can be found at www.youbet.com.
AI
