Youbet CEO Steps Down - 04-26-08

April 26 - Shares for the online advanced wagering company, Youbet, dropped on the New York stock exchange at the end of the week, following the news that its CEO, Gary Sproule has announced his resignation.

Sproule, who has been with the company since 2002, first as its Chief Financial Officer and then as its interim CEO from 2007, will be replaced by the US-facing Youbet's Chairman of the Board, Michael Brodsky.

"I believe Youbet.com is beginning to move in the right direction, and I eagerly anticipate the forthcoming challenges during this transition period," said Brodsky on becoming the the company's third CEO in six months. "Youbet Express is the preeminent online wagering platform in the country, and we hope to leverage its distinct advantages as well as our United Tote platform in order to complete our back-to-basics restructuring. I look forward to working with the Board and the Youbet team as we focus on growing this unique transaction-based internet business."

Youbet, which has been struggling with a poor financial record for quite some time now, has been given until September 29th of this year to regain compliance on the New York Stock Exchange or face delisting. Despite a 8.5% increase in gross profit in 2007, the company still reported annual losses of $27.4 million, mainly because of the underperformance of its IRG business. This sector of Youbet has since been discontinued, although it is still under investigation by the US authorities in Las Vegas.

Youbet management has not given a reason for Gary Sproule's resignation as of yet.