The California-based online betting company has agreed to buy the developer of totalizator systems, terminals and other pari-mutuel wagering services for $34.2 million in cash plus the refinancing of a $14.4 million secured debt.
United Tote supplies pari-mutuel tote services to approximately 94 racing facilities in North America, including Churchill Downs and New York Racing Association tracks, and 11 facilities in Korea, Mexico, Spain and other foreign markets.
Youbet also announced that it expects the handle growth rate for the fourth quarter to be significantly lower than its handle growth rate for the first nine months of 2005. The results will be adversely impacted by the inclement weather in October and November, which caused the loss of at least 250 more races, compared to the same two month period last year.
In separate news, 777 Sports Entertainment Corp announced a 16 per cent increase, up to $9m, in gross revenues from casino operations of 777betz.com for October 2005.
President James Po Ho Cheung said the company is very pleased with the results to date and looks forward to launch several new programs during 2006.
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