Youbet.com will launch its wagering hub in Oregon a full month earlier than expected.
Ron Luniewski, Youbet.com's executive vice president and chief operating officer, said the hub is expected to open for business in late August as opposed to late September. The reason for the schedule change, he explains, is old-fashioned hard work.
"Our technology side just did a great job and we just got ahead of schedule," he said. "Obviously the sooner we get opened, the sooner we get to drive what we believe will be significant revenues into the
company."
The hub, which will enable bettors to wager by telephone and Internet on races at 81 racetracks in 39 states, has been under development since May. Luniewski wouldn't commit to an exact start date for the service, but he said that once it's up and running, users on a typical Saturday will be able to look at upwards of 40 tracks' worth of races. Audio, video, odds and historical data will available via buttons down the side of the screen.
Luniewski said Youbet.com will continue to offer its betting service through Ladbrokes' hub in Pennsylvania as well.
Youbet.com processes less than 1 percent of the $16 billion worth of pari-mutuel wagers made in the United States on a yearly basis. The company said in a press release that it hopes to process 2 percent of domestic wagers--roughly $27 million per month in handle--by the end of 2002.
"Within the next five years, we hope to be able to achieve a 10 percent market share," said Robert Fell, Youbet.com's chairman and chief executive officer.
In May the company was awarded the license to operate a multi-jurisdictional hub in Oregon. The totalisator company that Youbet.com signed a contract with is Amtote International.
Luniewski said the Oregon hub will enable Youbet.com to execute its contract with Gemstar, which owns TVG, a cable channel that airs horseracing 24 hours a day. TVG has exclusive rights for interactive
wagering and simulcasting for the leading race tracks in the United States. Under the agreement, Youbet.com can use TVG's streaming video and Internet and telephone applications for accepting pari-mutuel wagers on horseracing for all of TVG' s partner racetracks, which include Churchill Downs and Belmont Park.
"The bottom line is the Oregon hub allows us to execute on our Gemstar contract, which gives us additional access to 45 percent of the of the $16 billon market that we didn't have, so we're really excited about that," Luniewski said.
Youbet.com chose to put the hub in Oregon because of its strong presence in horseracing, its favorable tax rates and its closeness to the company's headquarters in California, Luniewski said. Only five states--Oregon, Pennsylvania, New York, Maryland and Louisiana--offer such licenses.
Luniewski said that among Youbet.com's goals for the new hub is to increase the frequency of wagering by making the activity more convenient.
"Just as important," he said, "We believe that by exposing this very fun sport to the generations that have missed it, we will also lift horseracing up in terms of popularity and attract new people to the game."