Rebate shop gets hub license

Nov 8, 2005 4:33 AM

International Racing Group, an offshore rebate shop that operates as a subsidiary of Youbet.com Inc. (UBET), has been licensed by the Oregon Racing Commission to operate a multi-jurisdictional simulcast-wagering hub under Oregon state law.

The Curacao-based horse race betting facility sought to be licensed in Oregon 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 company said.

Youbet.com acquired IRG in June and operates it as a separate legal entity. IRG accepts wagers on races run at more than 90 U.S. thoroughbred, harness and greyhound tracks. It accepts telephone pari-mutuel wagers from high-volume players and offers them "discount incentives" a practice more readily known as "rebates." Such incentives are banned in Nevada.

In licensing the off-shore company, Oregon officials said they had inspected IRG’s headquarters and had considered a report from the state’s attorney general’s office.

It was noted that as a public company, Youbet.com, owner of IRG, 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."