Youbet.com to Acquire Betting System Maker

Youbet.com Inc., the online-betting site for horse racing, agreed to buy closely held United Tote Co. for $34.2 million to add wagering services and terminals for racetracks.

Shares of Woodland Hills-based Youbet.com fell 6.5% after it said its operations would be “adversely impacted” because the increase in the amount of money it handles in the fourth quarter will be “significantly lower” than the rise in the amount it handled in the first nine months of the year.

United Tote, based in Glen Rock, Pa., sells betting systems, gambling terminals and other wagering services to about 94 race tracks in North America. These include Churchill Downs (home of the Kentucky Derby) and New York Racing Assn. tracks including Belmont Park and Saratoga.

Youbet.com said it would assume and refinance about $14.4 million in United Tote secured debt. It expects the acquisition to be completed in 60 days.

This will be Youbet.com’s second acquisition in the last six months. Its purchase of closely held International Racing Group for about $2.79 million in cash and stock in June was the first since its $16.5-million, December 2000 acquisition of Argentine betting businesses from Hilton Group.

Shares of Youbet.com fell 36 cents to $5.22. They have gained 10% this year.