Youbet Breeders Cup day handle jumps 37%.

Race-day wager volume sets one-day online record

WOODLAND HILLS, Calif. -- Youbet.com, Inc. (NASDAQ:UBET) said today that its advanced deposit wagering handle on the day of the 2006 Breeders Cup jumped 37% over the same race day in 2005. Last Saturday's betting volume was the highest one-day online total in the history of the company, surpassing the previous record set on the day of the 2006 Kentucky Derby.

Youbet's Breeders Cup day handle was $5.7 million compared to $4.2 million last year. Of the 2006 total, $4.0 million was wagered on the Breeders Cup program at Churchill Downs, a 32% increase over the $3.0 million wagered at Belmont Park, the site of last year's race. In line with the increased handle, concurrent usage of Youbet's online wagering service spiked to 9,013 for this year's Cup races, a 25% increase over the previous year's peak.

International Racing Group (IRG), Youbet's U.S. licensed phone wagering subsidiary, handled $2.8 million last Saturday. IRG did not offer Breeders Cup races from Belmont in 2005.

"We've been watching our handle surge back to historic growth patterns over the past several months," said Youbet CEO Charles F. Champion. "This weekend's level of betting interest affirms once again that our channels still have a lot of growth in them. It also shows that we can continue to leverage our content and technology to attract new fans and new players."

Champion attributed the return to improved wagering volumes in part to the company's implementation of marketing programs this summer aimed at younger players predisposed to electronic delivery platforms. "The 21-40 year old age group continues to fuel a substantial portion of our handle growth," Champion said.

Youbet's United Tote subsidiary, the totalisator provider for Breeders Cup host track Churchill Downs, processed $136.7 million in wagers from all sources on Saturday, $18.3 million of which were on-track bets. Both figures are Breeders Cup race day records. Also on race day this year, United Tote's technology platform processed more than 7.6 million wagers, or 460 bets every second.

About Youbet

Youbet.com is a diversified provider of technology and pari-mutuel horse racing content for consumers through Internet and telephone platforms and is a leading supplier of totalizator systems, terminals and other pari-mutuel wagering services and systems to the pari-mutuel industry through its United Tote subsidiary. Youbet.com's International Racing Group subsidiary is the only pari-mutuel rebate provider to be licensed by a U.S. racing regulatory jurisdiction.

Through its website, Youbet offers members commingled track pools, live audio/video, up-to-the-minute track information, real-time wagering information, phone wagering, race replays, simultaneous multi-race viewing and value-added handicapping products.

Youbet.com's Players Trust(SM) revolutionized advanced deposit wagering by placing player deposits in the custody of a major U.S. financial institution. The Youbet Advantage(SM) Player Rewards Program is the only player incentive program of its kind in the U.S. pari-mutuel market; and Youbet's play-for-points racing education website -- www.Youbet.net -- is helping to attract new fans to racing. Youbet.com is an official online wagering platform of Churchill Downs Incorporated and the Kentucky Derby and is the exclusive provider of horse racing content for CBS SportsLine.com. More information on Youbet.com can be found at www.youbet.com.

Forward Looking Statements

This press release contains certain forward-looking statements. Statements containing expressions such as "may," "will," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," potential," "continue," or "pursue," or the negative or other variations thereof or comparable terminology used in Youbet's press releases and in its reports filed with the Securities and Exchange Commission are intended to identify forward-looking statements. These forward-looking statements, which are included in accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause Youbet's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although Youbet believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations. These risks, uncertainties and other factors are discussed in Youbet's Form 10-K for the year ended December 31, 2005 and in Youbet's other filings with the Securities and Exchange Commission. Such factors include, without limitation, the following: the timely development and market acceptance of new products and technologies; our ability to control operating expenses; increased competition in the advance deposit wagering business; a decline in the public acceptance of wagering; wagering ceasing to be approved in jurisdictions where Youbet currently operates; the limitation, conditioning or suspension of any of Youbet's licenses; increases in or new taxes imposed on wagering revenues; our ability to improve and innovate our technology; the inability of Youbet to successfully complete and integrate acquisitions; loss or retirement of key executives; and a decline in the general economy. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Youbet does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.