Youbet.com raided by police

Tuesday, Oct. 19, 1999 | 11:49 a.m.

THE ASSOCIATED PRESS

LOS ANGELES -- Youbet.com Inc. said it is cooperating with law enforcement officials who raided the headquarters of the Internet horse-betting service last week.

A search warrant was issued by a state judge, who determined there was probable cause that evidence of criminal activity would be found at Youbet.com's Los Angeles headquarters, said Loren Michael Naiman, a deputy district attorney for Los Angeles County.

"The issue is whether attempts by companies like Youbet to skirt the law do successfully get around state and federal legislation against gambling," Naiman said. "This is a cutting-edge area of the law."

The raid was conducted by agents of a task force led by the Los Angeles Police Department's vice squad, said Naiman. It also included agents from the LAPD's financial crimes unit; the district attorney's High Technology Analysis and Litigation Team, headed by Naiman, and the Orange County Sheriff's office.

Robert Fell, Youbet.com's chief executive, said in a statement the company "is and always has been in compliance with the applicable state, federal and international laws."

The company doesn't actually accept bets, he said; it transmits wagering information to licensed horse racing tracks.