“It’s very capital intensive, and it’s not growing - it’s declining.” “United Tote is not core to what they do,” said Mark Argento, an analyst at Craig-Hallum Capital Group. With International Racing Group out of the picture, Youbet should now sell United Tote, analysts said. Youbet closed the division last year after a federal investigation found that IRG was being used in an illegal book-making operation, although neither IRG nor Youbet was accused of any wrongdoing.
International Racing Group, which provided telephone betting services, was even more trouble. United Tote, which manages the equipment used by race tracks to place bets and calculate odds, contributed $11.2 million in losses to Youbet’s bottom line last year and $18 million in loses in 2007, according to Youbet’s regulatory filings.
