Gambling News - May 2005 Edition
"Youbet.com of California gets Washington Horse Betting License"
Horse racing industry slows as internet gambling picks up pace.
A license to accept online bets on horse races has been granted to Youbet.com
of Woodland Hills, California. This is how the Washington State Horse Racing
Commission took back control, or at least partial control, of the racetrack industry
in the state of Washington.
The state of Washington found a way to help the waning racetrack industry
survive the onslaught from the online gambling sites. Up to now, the horse
racing business and racetracks across the country have slowed down considerably
as the popularity of Internet gambling rises dramatically.
The Commission’s Chairman, Gary Christenson, when asked about
the message that is being sent by the Horse Racing Commission’s
decision, stated, “By giving Youbet.com a license, we are insuring
that the state of Washington gets the money that is due to it. If we didn’t
agree to give them a license, it wouldn’t guarantee that they’d
stop taking bets.” He added, “We didn’t turn a blind
eye because we included their need to pay us back”. In terms of
the licensing agreement Youbet.com will have to pay the Washington horse
racing industry a percentage of all wagers placed over the Internet and
it must also pay the state of Washington $400,000 for wagers that state
officials claim that Youbet.com accepted illegally during the previous
year. While actual figures for the amount of money that Youbet.com received
in bets is estimated to be closer to twelve million dollars, the $400,000
payback sends a clear message that Washington state will no longer tolerate
or reward illegal conduct.
The Commission’s decision to grant Youbet.com the license was
passed 4 to 0 with one member absent during the vote. Scott Salomon, the
lawyer for Youbet.com, commented that Youbet.com applied for the license
even though the company believes that the state lacks the authority to
regulate interstate Internet gambling and even though Youbet.com did not
break any laws by accepting bets from residents of Washington State over
the Internet. Salomon remarked, “All our activities have been with
the full knowledge of everyone in that room”.
Washington State has been turning a blind eye to Internet gambling has
been going on for years and other Internet sites continue to accept wagers
illegally. With the licensing of Youbet.com, the number of Internet companies
to licensed take online bets for horse races in Washington will rise to
three. The three companies that have been licensed are the ones that have
been profiting the most. The two other licensed companies are TVG of Hillsboro,
Oregon, which has paid $542,000 on $5.7 million in bets from Washington
and XpressBet, as subsidiary of Magna Entertainment Corporation of Aurora,
Ontario, which has paid $178,000 on $2.4 million in bets.
All forms of Internet gambling were prohibited in Washington prior to
the licensing of these companies. Executive Secretary of the Washington
State Race Track Commission, Rick Day, commented on other companies that
continue to accept wagers, saying, “If there are other companies
that continue to accept bets illegally, then we will move forward with
an investigation against those companies.” Sixteen other states
now have laws that regulate or restrict Internet gambling.
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