The Burbank company, the only publicly traded horse-betting outfit, is counting on the event to produce its biggest handle of the year, topping the $7 million wagered for the Cup last year. That would help the company to continue to emerge from a losing streak that saw annual losses three of the past four years, the costly acquisition of two gaming-related companies, a federal investigation and the threat of a Nasdaq delisting. Youbet is facing a shrinking marketplace as tracks close and playing the ponies becomes less popular. Just a fraction of the billions spent on horse-betting is online, and the company faces competition from several rivals. But a little more than a year after shuffling its top executives, Youbet appears to be on the rebound. It posted a profit for the last two quarters, and its share price -- while volatile -- closed Thursday at $2.32, up sharply from a 52-week low of 77 cents a year ago. 'We want to make sure we shine our absolute best this weekend,' said David Goldberg, Youbet.com Inc.'s chief executive. Michael Silber is among those rooting for the company. The owner of P-Squared, a toy and bobblehead manufacturer, said he typically used Youbet at least twice a week and often followed multiple horses on the site, betting on them as they race at tracks around the United States. 'They give you workout reports with more detail than anyone else,' said Silber, who lives in Los Angeles. 'You can watch two races at once. You can watch replays of races. You can see a horse's entire history, a jockey's entire history. It helps you make smarter bets.' Analysts say Youbet erred in two 2005 acquisitions: United Tote Co. and International Racing Group. United Tote, which manages the equipment used by race tracks to place bets and calculate odds, contributed $11.2 million in losses to Youbet's bottom line last year, and $18 million in 2007, according to Youbet's regulatory filings. International Racing Group, which provided telephone betting services, was even more trouble. Youbet closed the division last year after a federal investigation found that IRG was being used in an illegal book-making operation, although neither IRG nor Youbet was accused of wrongdoing. With IRG out of the picture, Youbet now should sell United Tote, analysts said. 'United Tote is not core to what they do,' said Mark Argento, an analyst with the Craig-Hallum Capital Group. 'It's very capital-intensive, and it's not growing -- it's declining.' Selling United Tote is paramount to the company's attempts to reboot as a true e-commerce business, said Michael Crawford, an analyst with B. Riley & Co. Goldberg was hired in October of last year as the company's chief operating officer and moved to CEO in June. Previously, he was executive vice president of global music services at Ticketmaster Entertainment Inc. Youbet Executive Chairman Michael Brodsky joined the company as chief executive officer in April 2008 and is credited with bringing in an understanding of e-commerce. Brodsky previously was a managing partner at an investment firm that owned about 13 percent of Youbet's shares. The firm, New World Opportunity Partners, was behind Brodsky's ascension to the position of CEO and later executive chairman. Youbet's previous executives came out of the horse-racing industry. Analyst Argento said Brodsky and Goldberg are more suited to the company's true business, because they understand the Internet. 'The horse-racing guys understand horse racing, and that's a dying industry,' Argento said. 'Now, Youbet is essentially e-commerce guys. They understand analytics, how to drive customers to the site and how to build a better, easier-to-use Web site and platform for betting.' In September, Youbet launched WhoDoYouLike.com, a Web site that aggregates messages from Twitter in real time related to different horse-racing topics. Youbet also provides statistics on horses and jockeys, live-streaming video of races and race results to ESPN.com and CBSSports.com, in hopes of driving traffic back to Youbet.com, Goldberg said. 'About a year and a half ago, Youbet wasn't looking so good and people were starting to write them off,' Argento said. 'What they've been able to pull off since then is pretty impressive.' (Begin optional trim) But that doesn't mean Youbet has crossed the finish line. Race tracks are closing, and purses and crowds are shrinking. The company faces stiff competition from other firms. Youbet's market share within online horse-betting is 30 percent, according to the Oregon Racing Commission. TVG.com, the online betting house for the Television Games Network, which broadcasts races on satellite TV, also has a 30 percent share, commission reports said. Twinspires.com was started in 2007 by Churchill Downs Inc. and last year recorded a 21 percent share. (End optional trim) Youbet is pinning some hopes on a bill in the U.S. Senate and another in the House of Representatives that seek to legalize, regulate and tax other forms on online gambling. But, until laws change, the company's main focus is getting more people online and betting on horses, Goldberg said. 'We aren't looking to replace the racetrack,' Goldberg said. 'We're looking to complement it.' 