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In a brief statement, 888 Holdings Ltd., which has been publicly traded on the exchange since 2005, said:
"Harrah's, which is registered with the Nevada Gaming Commission ('NGC'), submitted to the NGC and the Nevada State Gaming Control Board an application for a finding of suitability concerning (Harrah's Interactive Entertainment's) supplier relationship with Dragonfish. The application relates to state law in Nevada that covers Nevada gaming companies conducting gaming outside the state of Nevada."
Dragonfish, a subsidiary of 888, has a long-term agreement with Harrah's subsidiary, Harrah's Interactive Entertainment, to provide the technology and services to operate online gambling sites for the World Series of Poker and Caesars casino brands. The Web sites are only available to citizens of the United Kingdom and cannot be accessed by Americans.
The application by Harrah's, filed under the Foreign Gaming Act, marks the first time Nevada gaming regulators have been asked to investigate the suitability of an online gaming company that took wagers from American gamblers before the enactment of the Unlawful Internet Gaming Enforcement Act in 2006.
The law covers a Nevada gaming company's dealings with a foreign business. It was the law used in 2007 when gaming regulators found Hong Kong businesswoman Pansy Ho to be a suitable business partner for MGM Mirage in their shared ownership of the MGM Grand Macau.
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