While ESPN reported that the American racing industry is losing big money to offshore wagering, pari-mutuel betting operator Youbet.com announced today the closing of its offshore telephone wagering unit IRG, which it had acquired in 2005.
The decision was made to discontinue IRG because it had become unprofitable after a severe reduction in wagering activity, following the continuing investigation by the U.S. Attorney’s Office in Las Vegas, said Youbet.
“The decision to close IRG was necessary as we continue to focus our management priorities on improving profitability and shareholder value,” said interim CEO Gary W. Sproule.
Youbet has estimated the total amount of the fourth quarter impairment associated with the closing of the IRG business to be approximately $9.9 million.
In other news, Magna Entertainment received a delisting warning from Nasdaq. MEC has until August 11 for its shares to start trading again above the minimum of $1 for 10 consecutive business days.
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