Online betting service Youbet.com Inc. said it intends to restate its financial statements for fiscal 2007 to account for a $1.1 million increase in an impairment charge related to its now defunct International Racing Group business.

IRG was an offshore phone service for high rollers, allowing them to place large bets on horse races. Woodland Hills-based Youbet.com in March shut down the Curacao wagering provider it had acquired in 2005 after resolving a federal and Nevada state money laundering investigation.

The closure cost the company $12.5 million. The company originally said in its year-end financial report that it had accrued $3.2 million due to be paid to IRG’s original owner on August 31. Upon further review, the payment is potentially $4.3 million, the company said in a late Thursday regulatory filing.

The United States Attorney’s Office in Las Vegas agreed to not pursue any charges against Youbet or its subsidiaries. Youbet agreed to continue cooperating with the government investigation and not to contest the seizure of approximately $1.5 million from IRG accounts in October.

Youbet shares were down 4 cents, or 3 percent, to $1.14 in midday trading on the Nasdaq