American online pari-mutuel wagering operator Youbet.com has entered an agreement with the U.S. Attorney's Office to settle its part in a federal investigation into alleged illegal activity undertaken by customers of its former offshore wagering subsidiary, International Racing Group (IRG).
Youbet has agreed continue cooperating with officials and in exchange has been assured freedom from future legal action from the U.S. government on the matter.
Youbet revealed in October 2007 that federal authorities had raided IRG offices in California and seized $1.5 million from three of its bank accounts in Nevada. This week the company declared it would not contest the seizure and would reimburse customers funds "where it is legal and appropriate to do so."
Youbet shut down Curacao-headquartered IRG in February, saying it had been "adversely impacted due to a sever reduction in wagering activity."