Youbet.com lashed out angrily these week at Forbes magazine, charging that the magazine's article on Youbet in the current April 5 issue mailed to subscribers this week contained numerous factual errors.
The article said, among other things, that the Kyl bill "would outlaw bets across state lines." Youbet chairman Robert Fell, who spoke at the Harness Racing Congress earlier this month, said, "contrary to this article, the Kyl bill, as released today, would have no negative impact on the way Youbet.com and
the racing industry conduct their business. ... Restrictions, such as using a secure, closed-loop, subscriber based system, and strict safeguards against youth gambling, are current requirements of the Youbet.com system. Youbet.com complies today with all these conditions. If Sen. Kyl's proposed legislation becomes law, it will require no changes in our network operations."
Fell also said the article includes misstatements of the company's revenues and an incomplete description of the company's relationships with horse racing tracks. Forbes used revenue figures from September, only two months after Youbet began public operations. It also claimed that Youbet charged customers "a cut of each bet"--which it does not--in addition to the monthly $5.95 fee.
Fell said, "As the world grapples with the many changes in commerce created by the impact of the Internet, so does racing. New media creates new challenges. Youbet.com is part of finding solutions within the racing industry that enables all parties concerned to benefit from the power of e-commerce while satisfying diverse economic needs. ... Youbet.com leverages the new technology to make racing more convenient, more accessible, and more exciting. This new technology will energize a whole new audience."