IRG Settles with US

March 27, 2008

The online gambling group, International Racing Group, has seemingly settled a wagering investigation that was brought against them by the United States government. The IRG is actually a subsidiary of YouBet.com and the US had brought an investigation against the company for wagering activity.

The activity supposedly happened in Nevada, which would make it illegal per the Unlawful Internet Gambling and Enforcement Act or UIGEA. IRG has closed down, but before doing so they settled the investigation with no charges being filed against it or any of its subsidiaries.

The company is pleased that no charges have been filed, but they have agreed to cooperate with the government in an ongoing investigation into illegal online gambling. Youbet.com is responsible for forfeiting $1.5 million which is the amount the US seized during the course of the investigation.

YouBet.com closed down IRG in February stating that they were losing too much money and that their customer base was down. They said that they had to put their focus on other areas instead. The money that the company lost was more than they could financially handle.

They said that the decision to close down ITG was “necessary” while they started focusing their “management priorities on improving profitability and shareholder value,” according to Gary Sproule, Chief Executive for the company.



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