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Betting on UBET

Oct 21, 2008 5:06 PM

Industry Insider by Ray Poirier | Word circulated over the weekend that Youbet.com, the provider of Internet wagering services to the horse racing industry, may be leaving the ranks of the NASDAQ-traded companies.

It was being suggested that Michael Brodsky, who has taken over the roles of president and CEO of Youbet.com, may be contemplating taking the company private.

In a filing with the Securities & Exchange Commission, Brodsky’s company, New World Opportunity Partners, which he also manages, has accumulated nearly 10% of Youbet.com’s publicly traded shares.

Youbet.com has had trouble in the past year, primarily because of the efforts of Churchill Downs Inc. (CHDN) and Magna Entertainment Corp. (MECA) to restrict their racing signals to the users of their own advanced wagering systems.

One of Youbet’s assets, the United Tote Co., has been for sale for many months with no takers.