Rebate shop declines costly to Youbet

Youbet.com, the online horse-race wagering company, lost $357,000 in the second quarter of 2007 after handle during the quarter at its rebate shop, International Racing Group, plummeted, according to financial statements released on Tuesday.

Last year during the second quarter, Youbet.com had net income of $2.2 million. Youbet, however, lost the right to carry much of the content controlled by Churchill Downs Inc. and Magna Entertainment Corp. during the second quarter of this year, and the result was sharply lower handle at IRG, down from $92 million last year to $58.3 million this year.

Handle through Youbet.com's domestic operation was up during the quarter, from $125.2 million last year to $130.2 million.

Total revenue in the quarter was down from $39.6 million to $37.3 million. Revenue from IRG was $1.4 million, compared with $2.1 million, while revenue from Youbet.com were $26.3 million, compared with $25.2 million.