Online Gambling Company Youbet Sees Tumbling Profits
Youbet.com, a company specializing in online gambling involving horse racing, announced it suffered a drop of 28 percent in profits over the second quarter, as compared to last year. Youbet is noted for offering online gambling without interference from the US Department of Justice, despite that department's proclamation that all online gambling is illegal.
Youbet officials blamed the economy and tight consumer budgets on the decline.
"We continue to see weakness across the consumer and gaming sector in particular, which has impacted the horse racing industry," said Youbet CEO David Goldberg.
Goldberg did not address the rising market overall for Internet gambling, or the positive figures found at most regional casinos, numbers that indicate more a market shift than general economic difficulty.
The site allows gamblers to open accounts, place bets on hose racing around the US, and see race results online. Youbet and TwinSpires, a similar site operated by Churchill Downs, are frequently cited by overseas online casinos upset with discriminatory practices against online gaming operators.
Quarterly profit dropped to $1.5 million, equivalent to 3 cents a share, as compared to $2 million, or 5 cents a share, in 2008. Analysts had predicted almost double the reported profits.
