Youbet.com resolves investigation

Under the terms of an agreement signed with the US Attorney’s Office in Las Vegas, the government has agreed not to pursue any charges against Youbet or its subsidiaries. In exchange, the company has agreed to continue cooperating with the government in its investigation.

Youbet has also agreed not to contest the previously announced seizure of approximately us$ 1.5 million from IRG by the government in October 2007. It is the company’s intent to reimburse customer funds where it is legal and appropriate to do so.

"We are pleased to come to an agreement with the US Attorney’s Office, and we continue to pledge our cooperation in this very serious matter," said interim CEO Gary W. Sproule.

Youbet expects to incur ongoing costs associated with its continued cooperation with, and eventual resolution of, the ongoing government investigation, although the precise amount or timing cannot be predicted at this time. These costs were not related to the company’s decision to shut down IRG.

The company expects to devote as much time as required to bring this issue to a close; however, following the settlement, management expects to be able to refocus most of its resources on operating its core Youbet Express platform.