US Legislation

888 Holdings plc
02 October 2006


2 October 2006

                      888 Holdings Public Limited Company
                            ('888' or the 'Company')

                        Announcement Re: US Legislation

The Board has discussed the implications of the internet gaming provisions
contained in Title VIII of the Safe Ports Act which passed Congress in the USA
early on the morning of Saturday 30 September. These provisions state that, from
the date the legislation becomes effective, the receipt of funds by electronic
funds transfer and other prescribed methods in connection with internet gaming
that is illegal under U.S. state or federal law will constitute a federal
offence by the relevant operator.

The legislation is expected to be signed into law by President Bush within the
next two weeks, and will become effective immediately thereafter. In addition the
Act requires the Secretary of Treasury, within 270 days, to issue regulations
requiring financial institutions to block transactions in connection with
internet gaming.

In many respects the precise effect of the legislation is unclear and it is not
yet known what the implementing regulations will say, or how financial
institutions at whom part of the legislation is directed will react.
However, this legislation indicates Congressional intent to treat internet
gaming, whether sports related or not, as illegal. In addition, it is the first
federal measure to address internet gaming explicitly. This represents a
significant development in the US legal status. The Act also addresses certain
jurisdictional and other uncertainties in the previous U.S. legal situation.

In the light of these considerations the Board has concluded that it is
appropriate to suspend participation by US based customers in activities covered
by the legislation. The Company will implement this suspension immediately upon
the legislation taking effect and the suspension will continue for so long as
the legal situation remains the same. The Board will continue to seek
clarification of the overall US legal position to determine whether and to what
extent if any resumption of participation by US customers is feasible.  At
present however no assurance can be given that this will be possible. The
Company will continue and develop those aspects of its US business which are not
affected by relevant legislation.

In recent years 888 has pursued a strategy of building its brand and business in
markets outside the US. In the six months to 30 June 2006 revenues from non
US players amounted to approximately 48 per cent of the Group's net gaming 
revenue and in the second quarter of 2006 approximately 68 per cent of
first time depositors (new customers) were non US. The Board believes the
Company is well placed to achieve further growth outside the US and will 
continue to focus its attention on growth in non US markets.

A significant proportion of the Group's cost base is variable and relates 
directly to the level of activity. The Company will review its fixed cost base 
in the light of the suspension of US business described above and this may 
result in charges being taken in this year's results.

Whilst suspension of US activities will have a material adverse impact on
results for this year and beyond, the Company has significant cash
resources which are more than adequate to continue its operations and further
develop its business taking account of sums required to cover return of deposits
to US customers and the dividend payment due to be made to shareholders
on 31 October 2006.

Notwithstanding the planned suspension of US business referred to above, the
Board is confident that 888 remains a viable, profitable business and looks
forward to pursuing growth opportunities in its international markets with
continued vigour.

                                     -Ends-

Contacts and enquiries

888
John Anderson Chief Executive Officer                     [phone]
Gigi Levy Chief Operating Officer                         [phone]

Bell Pottinger Corporate & Financial
Ann-Marie Wilkinson/Chris Hamilton                        [phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange