05/05/2008 11:00PM

Youbet posts decline in net


Youbet.com, one of the largest account-wagering companies in the United States, had net income of $774,000 in the first quarter of 2008, compared with net income of $1.6 million in the first quarter of last year, according to financial statements released by the company Tuesday.

The decline was primarily attributable to the closing of Youbet's offshore rebate shop, International Racing Group, early in the first quarter of this year. That company, which was closed following an investigation by federal authorities into activities of some of its customers, handled $87.4 million in bets in the first quarter of 2007, compared with $408,000 this year.

Handle through Youbet's domestic account-wagering platform was $95.5 million, compared with $114.2 million last year. Since the first quarter of 2007, Youbet lost the rights to carry a number of high-profile tracks because of failed negotiations with a simulcast-marketing partnership controlled by Churchill Downs Inc. and Magna Entertainment Corp.

Revenue in the quarter was down 14.3 percent to $24.5 million from $28.6 million in the first quarter last year.