YOUBET.COM INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (UNAUDITED)

                                          Three Months Ended March 31,
                                                 2001          2000

Revenues                                   $  1,647,765  $  1,705,237
Operating expenses
 Network operations                             714,471       736,991
 Research and development                       713,523       619,575
 Sales and marketing                          1,063,930     1,634,256
 General and administrative                   1,185,788     1,564,199
 Depreciation and amortization                  493,358       208,859
  Total operating expenses                    4,171,070     4,763,880
Loss from operations                         (2,523,305)   (3,058,643)

Other income (expense):
 Interest income                                176,058       784,684
 Interest expense                                (3,792)   (1,017,315)
 Amortization of deferred
  financing costs                                    --       (79,926)
 Fair value of warrants issued for
  financing costs                                    --       (12,570)
 Other                                           (2,087)      (33,555)
  Total other income (expense)                  170,179      (358,682)

Loss before extraordinary item               (2,353,126)   (3,417,325)
  Extraordinary item                                 --       429,633
Net loss                                   $ (2,353,126) $ (2,987,692)

Basic and diluted:
 Loss before extraordinary item
  per common share                              $ (0.12)      $ (0.17)
 Extraordinary item                                  --          0.02
 Net loss per common share                      $ (0.12)      $ (0.15)

 Weighted average number of common
  shares outstanding                         19,520,850    19,379,909


                            YOUBET.COM INC.
                      CONSOLIDATED BALANCE SHEETS

                                        March 31, 2001  Dec. 31, 2000
                                           (Unaudited)      (Audited)
ASSETS
Current assets:
Cash and cash equivalents                  $  9,799,319 $  12,094,172
Restricted cash                                 107,867       107,867
Receivables                                     153,426       322,460
Interest and other receivables                  237,289       490,692
Prepaid expenses                                360,978       338,886

  Total current assets                       10,658,879    13,354,077

Property and equipment                        9,720,538     9,349,774
Less: Accumulated depreciation and
 amortization                                (2,485,912)   (2,077,275)

  Property and equipment, net                 7,234,626     7,272,499

Capitalized software                          2,542,506     2,542,506
Restricted cash                                 812,938       920,805
Deposits and other                              139,588       181,290
  Total assets                            $  21,388,537 $  24,271,177

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable                           $  1,014,459  $  1,604,137
Accrued compensation and related items          304,672       403,588
Accrued expenses                              1,758,568     1,587,042
Deferred revenues                                 8,665         7,113
Current portion of capitalized lease
 obligation                                          --         8,909

  Total current liabilities                   3,086,364     3,610,789

  Total liabilities                           3,086,364     3,610,789

Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value
 (aggregate liquidation preference of
 $0)
  Authorized 1,000,000 shares, none
   outstanding                                       --            --
Common stock, $0.001 par value --
  Authorized 50,000,000 shares,
   19,520,850 shares outstanding as of
   March 31, 2001, and Dec. 31, 2000             19,521        19,521
Additional paid-in capital                   84,829,388    84,834,477
Accumulated deficit                         (66,406,736)  (64,053,610)
Notes receivable from stockholders             (140,000)     (140,000)

  Total stockholders' equity                 18,302,173    20,660,388
  Total liabilities and stockholders'
   equity                                 $  21,388,537 $  24,271,177