Online Gambling Company Settles Wagering Investigation With U.S.

International Racing Group is a subsidiary of Youbet.com. The group had been investigated for wagering activity by customers that could have occurred in Nevada. IRG has since been closed down.

IRG has settled an investigation by state and federal government agencies into alleged wagering activity from customers in Nevada. The settlement calls for no charges against IRG, or its subsidiaries.

The fact that charges will not be filed is the good news for the company. The bad news is that they must now cooperate with the government in an ongoing investigation.

Another part of the settlement calls for Youbet.com to forfeit about $1.5 million in what the government seized in the investigation. The money is small compared to the bad press the company could have received if the government pursued charges.

Youbet.com decided back in February that it could no longer take IRG losing money. their customer base was down, and efforts needed to be focused on other areas.

"The decision to close IRG was necessary as we continue to focus our management priorities on improving profitability and shareholder value," said Gary Sproule, Chief Executive, back in February.

March 18, 2008
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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