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Youbet.com renews Virginia license application5 March 2008WOODLAND HILLS, California -- (PRESS RELEASE) -- Youbet.com, Inc. (NASDAQ: UBET) today announced that it has reached an agreement in principle with Colonial Downs, L.P., the Virginia Horsemen's Benevolent and Protective Association, the Virginia Racing Commission, and the Commonwealth of Virginia. Terms of the settlement are expected to include mutual releases by the parties of all claims and dismissal of the litigation. As part of the agreement, the company promptly will refresh its application for an advanced deposit wagering (ADW) license from the Virginia Racing Commission, and the settlement and dismissal of the litigation is conditioned upon the issuance of an ADW license by the Commission. Also as part of the agreement, the company expects to pay source market fees on handle from Virginia residents effective as of January 1, 2008, and continuing for a period of three years. In 2008, the company also expects to pay additional fees of $150,000 spread over four calendar quarters. Youbet operations in Virginia were not interrupted while this lawsuit was pending and are expected to continue while the settlement is finalized and documented and while Youbet's updated license application is processed. "We are pleased that we were able to come to a mutually satisfactory agreement," said interim Chief Executive Officer Gary W. Sproule. "This resolution will allow us to remain focused on growing our core business, improving profitability, and increasing value for our shareholders." |