Youbet.com announced today it is voluntarily suspending the reception and transmission of wagering information from California residents and is accelerating its implementation of a new data center outside the state of California.
"In continued cooperation with the Los Angeles County District Attorney's office, we have voluntarily suspended service to our California based subscribers," said Robert Fell, chief executive officer of Youbet.com. "Youbet was already in the planning stages of a redundant data center outside of California and we are now implementing these plans to move computer equipment that records and stores data."
Youbet.com's role in the wagering process is limited to transmitting information related to the wagers to the licensed wagering facilities via its exclusive private closed-loop network. Wagers are accepted and placed only by a state licensed wagering entity, currently the Ladbroke Pennsylvania facility. Youbet's subscribers have a 24-hour access to the network's features including live racing from more than 30 racetracks, commingled track pools, live audio/video, up-to-the-minute track information, real-time wagering information and value-added handicapping products.
Meanwhile, word on the street is that the attorneys general of Texas and Arkansas have both informed Youbet.com that the company's business practices are illegal in their respective states. The closed-loop betting system utilized by Youbet.com appeared to be steady ground for conducting an interactive gambling service in the U.S. until the company was raided last month by the LAPD.