Youbet.com announced Wednesday that it is attempting to acquire American Wagering Company for $9.5 million.
According to a release from Youbet.com, American Wagering Company supplies nearly 85% of the sports wagering computer systems in use by Nevada casinos.
American Wagering and its wholly-owned subsidiary, Leroy's Horse and Sports Place, are operating under Chapter 11 of the U. S. Bankruptcy Code. Leroy's operates Nevada's largest statewide network of sports and wagering facilities in the state, with 49 locations and plans to expand to 60 outlets by Dec. 1 of this year. The Youbet.com offer was part of a competing reorganization plan filed with the bankruptcy court in Reno, Nevada. Half of Youbet.com's offer is in the form of cash and the remainder would be stock in the online wagering company.
According to Youbet.com, the bankruptcy court recently denied American Wagering's motion to exclude Youbet.com and other interested companies from filing competing plans to acquire AWI. The bankruptcy court has scheduled a hearing on Nov. 12 to consider Youbet's motion to approve the proposed disclosure statement to accompany its reorganization plan. If Youbet's motion is granted, the bankruptcy court will consider all competing plans at the confirmation hearing currently scheduled for Feb. 14, 2005.
"An acquisition of AWI would be consistent with our stated goals of expanding into ancillary areas of the gaming and wagering industries where we can leverage our existing capabilities and infrastructure capacity while diversifying our sources of revenue," said Youbet chairman and CEO Charles F. Champion. "If completed, the acquisition would also enhance Youbet's entry into the Nevada market where we believe there are opportunities to work on various business initiatives with casino operators."