Shares of Internet horse-race gambling company Youbet climbed 12 percent after the company announced an agreement that will allow customers to place bets online with electronic cash.

Under the agreement, customers of Youbet can visit one of 50,000 retailers nationwide that belong to the Green Dot Financial network. The customers can convert hard cash into electronic money by purchasing a prepaid card. Then, via the Web site, the customer enters a pass code on the card to transfer the money online into their Youbet Express account.

“This agreement will help facilitate the opening of accounts from new customers who otherwise would not seek access to the Youbet Express platform,” Jeffrey Grosman, chief marketing officer, said in a statement.

Youbet stock gained 34 cents, or 12 percent, to close at $3.11 per share.