Youbet.com, the Los Angeles-based provider of a closed-loop pari-mutuel wagering network, is joining stampede to the Latin American market by purchasing Ladbrokes bingo and off-track betting operations located in Argentina for $26 million in cash and notes.
"Our transaction with Ladbrokes is an important initial step in Youbet.com's international strategy of building the definitive global brand for online gaming," Youbet CEO Robert Fell said. "These well established operations in Argentina create an excellent opportunity for our entry into the foreign market, as well as advancing our 'clicks and mortar' overseas business strategy."
He added, "We believe that putting bingo, horseracing and selective sports products online in South America will augur very well for the future of Youbet.com in this region. From this transaction, Youbet.com will gain important international government relationships, significant gaming licenses, strong cash flow and valuable new employees. We are very excited about the opportunities inherent in a purchase such as this."
The acquisition of Ladbrokes bingo and off-track betting operations is subject to execution and closing of a definitive purchase agreement. Upon its conclusion, Youbet.com plans to make part of the operations available over the Internet, and will heavily invest in technology within the region. Ladbrokes is the betting and gaming division of Hilton Group Plc.