Youbet posts $2mil loss

Revenues for the company, driven by strong wagering gains for its domestic account-wagering platform and for its offshore rebate shop, International Racing Group, were $136.7 million, up 53.9 percent over 2005. Expenses rose 60.4 percent, from $85.8 million in 2005 to $137.3 million in 2006.

Total handle through both Youbet.com and IRG rose 61.5 percent to $763 million. Of that total, $299.2 million was bet through IRG, an increase of 190 percent over the 2005 figure. Youbet said in a release that the growth was driven in part by the implementation of computerized robotic wagering at IRG in 2006. The technology utilizes a sophisticated computer program to determine large combinations of wagers, coupled with rebates on handle.

http://www.drf.com/news/article/83219.html

So, IRG implemented computerized robotic wagering , and $299 of $763 million was bet thru IRG. So , the whales are there and Youbet persists in trying to market Youbet to smaller bettors ? It would seem that their whales are eating the smaller players lunch, wouldn't it. Wonder when there are those late drops in odds while the races are being run ? Well it would seem that we can thank Youbet for that.

BTW, are you going to touch on this topic for your handicapping seminars on Youbet ? What do you make of this all ? Seems as if one doesnot need to improve ones handicapping much when those IRG rebates kick in. It smells like week old fish to this handicapper.