JC / Railbird

DC Ban Traces to Oregon

The abrupt ADW closures that shut out DC horseplayers last weekend were the result of a state criminal code review by the Oregon Racing Commission, reports John Scheinman in today’s Washington Post:

Commission officials recently reviewed state criminal codes and discovered it is illegal to accept or place bets on horse races within the District. As the regulator of a multi-jurisdictional “hub” for interstate horse racing bets made online, the commission advised advanced deposit wagering companies (ADWs) they were at risk of breaking the law.

The Oregon Racing Comission regulates the hub through which most US-based online wagering is routed.
Displaying their usual concern for the customer, Youbet and other services closed mid-card Saturday with little notice. “I’m betting early in the card, maybe the third or fourth race, and when I got back on for the ninth I couldn’t bet,” Mike Soper told the Post. “In the middle of the day, they decided this was illegal and they couldn’t take bets.”
10/8 Addendum: J.S. supplies some additional information from his Thoroughbred Times article in the comment below and raises a few good questions — what is going on with Youbet?

The California Horse Racing Board is considering requiring all ADWs that operate in the state to share wagering content as a condition of licensing. “I believe it is time for this board to step up and do something for our fans and do something for our industry,” said CHRB chairman Richard Shapiro (ThoroTimes). The proposal would sensibly separate wagering rights from broadcast rights, a necessary division for the online market to evolve.


1 Comment

A little more info from my Thoroughbred Times story, in case you missed it:
He said a phone call to Youbet was routed to the Netherlands, Antilles, the company’s offshore base.
“I got a young lady with an island twang to her voice, and she’s got no idea what I’m talking about,” Soper said. “I never got an explanation. They just say changes in D.C. law.”
Youbet.com refused to put an executive on the phone with me after repeated requests. They dealt me out to some very nice PR gentleman in the middle of nowhere. The president of Youbet.com, Charles Champion, first was out of the office, and then said to be in Europe. I’d like to know what exactly he is running from. Transparency is critical to building public trust and support. This coupled with the lawsuit in Virginia against Youbet gives me bad vibes about this company. Their stock is in the dumps. You’d think they’d come out and be frank about their business. Being a publicly traded company, you’d think you’d want to be up front about what you do and work toward positive spin. Can’t imagine what they’re thinking over there. — J.S.

Posted by J.S. on October 6, 2007 @ 12:41 am