IRG DONE

[tbioaj]

http://biz.yahoo.com/e/080213/ubet8-k.html

[Ray2000]

Some addition info on Youbet dumping IRG



8:45AM Youbet.com to close IRG on February 15 (UBET (http://finance.yahoo.com/q?s=ubet&d=t)) 1.03 : Co announces that or before Feb 15, it would be discontinuing the operations of International Racing Group, which it had purchased in June 2005. The IRG Business has been adversely impacted due to a severe reduction in wagering activity, which was tempered modestly by significant staff reductions since the commencement of the previously reported investigation involving the IRG Business by the U.S. Attorney's Office in Las Vegas, Nevada. The decision was made by Youbet to discontinue these operations because IRG has become unprofitable and shows no sign of altering that status in the near term. In light of the future outlook for the IRG Business under the continuing investigation, Youbet presently estimates the total amount of the fourth quarter impairment associated with the IRG Business to be approximately $9.9 mln, consisting of $6.7 mln in the unamortized balance of prior earn-out payments as of November 30, 2007 and $3.2 million of earned but unpaid earn-out payments due August 31, 2008.

Youbets original hype in 2005...
http://findarticles.com/p/articles/mi_m0EIN/is_2005_June_2/ai_n13792994

[alydar]

Interesting all the talk back last fall about IRG etc., and now only one commnet on its demise.

What a fickle bunch horseplayers are.

[richrosa]

This was well expected and projected by this group. With some of knowledgeable people on this board, no one is surprised.

[Pace Cap'n]

Just wait until all those indictments come down. Hey, Jilly, we're still waiting.

[Murph]

How does this affect youbet pro or con?

I wonder if it makes them more or less profitable long term or maybe
have the opposite effect overall? I'm not a stock guy so I don't know
if share holders have any figures about this.

What will cutting IRG gain or cost them on the overall ADW scene remains
to be seen I suppose. Can the move ruin the company or help it?

Murph

[alydar]

This was well expected and projected by this group. With some of knowledgeable people on this board, no one is surprised.

I would agree that nobody should be surprised by this development.

Where are all the promised indictments, and negative news about RGS and Churchill?

Still nothing...

[chrismc]

Youbet, with new CEO Gary Sproule will look to cost cutting after IRG fiasco.

YB also sold back a production company they bought last year??? to the original owners.

With reduced content, loss of IRG, Tracks not re-signing with YB's United Tote and the polfileration of new ADW's in the market, YB is ripe for a consolidation takeover... with 300k "players" and an average CPA to get customers around $100 per acquistion, $30 mill for YB would make nice addition for an ADW to control the industry...shed all operations and just take the DB of names....mmm?

YB needs to shore up costs (payroll) and develop strategc relationships with like vedors to reduce infrastructure costs....

What happened to YB Nevada??? Still something there with local Racebook chain...but will never replace lost $$$ from IRG.

YB is a NO BUY...

[Premier Turf Club]

Youbet, with new CEO Gary Sproule will look to cost cutting after IRG fiasco.

YB also sold back a production company they bought last year??? to the original owners.

With reduced content, loss of IRG, Tracks not re-signing with YB's United Tote and the polfileration of new ADW's in the market, YB is ripe for a consolidation takeover... with 300k "players" and an average CPA to get customers around $100 per acquistion, $30 mill for YB would make nice addition for an ADW to control the industry...shed all operations and just take the DB of names....mmm?

YB needs to shore up costs (payroll) and develop strategc relationships with like vedors to reduce infrastructure costs....

What happened to YB Nevada??? Still something there with local Racebook chain...but will never replace lost $$$ from IRG.

YB is a NO BUY...

They have very signifcant infrastucture and pretty steep overhead. It would not be an easy (or cheap) integration. What % of those accounts are profitable?

[Javagold]

Champion and the BOD need to have a Lawsuit thrown at them for how they ran this company into the groiund and all the while taking unfair gains right in front of the shareholders eye every quarter. They need to answer for what happened and SOON !!

[jillybeans]

Indictments. You guys want indictments? indictments you will have this month. horse racing is about to be dealt a severe blow. lets all sit back and watch this unravel. and figure out how horse racing will recover from this bad press.:bang:

[Pace Cap'n]

Hmmm....now where have we heard that before?

[Pace Cap'n]

news.bloodhorse.com/article/48135.htm?id=48135 (http://news.bloodhorse.com/article/48135.htm?id=48135)

Youbet.com said Nov. 19 it has settled several disputes with the former owners of defunct off-shore wagering entity International Racing Group, a deal which features both cash and stocks changing hands, and mentions that a federal investigation into IRG may still be active.

Under terms of the agreement filed with the Securities and Exchange Commission, Youbet will pay $2.252 million in cash to the IRG’s original sellers, who in turn will relinquish their rights to 55,554 shares of Youbet common stock....

...the filing also said the certificates for the 55,554 relinquished stock shares were “in possession” by the U.S. Attorney’s Office, although the sellers agreed to deliver “executed originals” of the stock powers.

As part of the investigation believed to involve certain IRG customers and employees, Youbet in October 2007 reported federal officials had seized $1.5 million in three IRG Nevada bank accounts and had conducted a search of the Youbet California headquarters. Youbet subsequently shuttered IRG in February.

In March, Youbet said it had reached an agreement with federal investigators, exchanging a pledge of cooperation for not being charged in the matter. The U.S. Attorney’s Office in Nevada has never acknowledged the existence of such an investigation, which is a typical policy for the agency.

Yo, Jilly, how's those indictments coming along?

[jillybeans]

Did you have your front door kicked in?:lol: :D :lol: :jump:

[lamboguy]

i don't think jilly is talking about UBET employee's here. i have a suspicion that it might be a few large owners and gamblers.

[betovernetcapper]

Youbet filed a report with the SEC last week that said the investigation was not done and Ryan Conley wrote about it.

But the SEC filing suggested all or part of the settlement payoffs may not get into the hands of the respective parties, due to the purported federal investigation into IRG by the U.S. Attorney’s Office into Nevada.

“The parties recognize that the funds payable under this agreement could be subject to seizure, restraint, or forfeiture by the (U.S. Attorney’s Office) or another governmental agency,” the filing said, adding it was “required” to notify the federal agency of the settlement.

Conversely, the filing also said the certificates for the 55,554 relinquished stock shares were “in possession” by the U.S. Attorney’s Office, although the sellers agreed to deliver “executed originals” of the stock powers.

http://news.bloodhorse.com/article/48135.htm?id=48135


It is all very hush, hush in Vegas but it is not over at all and Youbet went on record and confirmed that when they sent in the paperwork to the SEC.

[jillybeans]

You bet...what a joke!:D