The Nevada Gaming Control Board is investigating complaints that Iovation was operating in Nevada without proper licensing. It was discovered that Iovation was a subcontractor of CAMS, a subsidiary of Verifi. CAMS is licensed as a service provider in the Nevada online poker market. CAMS was being used by Ultimate Poker for player verification, a service they appear to have contracted out to Iovation.
Nevada Gaming Control Board Chairman A.G. Burnett told the Las Vegas Review-Journal:
This is in the category of where the ultimate responsibility rests upon the licensee , and I know that they are addressing the issue. We, in turn, will analyze what we received back from Ultimate, and then decide how to proceed from here.
Ultimate Poker is cooperating with the investigation. The company stopped using Iovation on Thursday, but did not announce the news to the online poker community until Saturday afternoon.
Iovation has been the main topic for online poker players last week. A tape was leaked where former and current shareholders of the company discussed an insider cheating scandal involving Russ Hamilton. It is clear that Greg Pierson, founder and CEO of Iovation, had knowledge of insider cheating at Ultimate Bet. The tapes imply that Iovation may have even been founded and floated with money stolen in the cheating scandal by Hamilton and others. Iovation was Ultimate Bet’s software company and provided Hamilton and others with the ability to see player’s hole cards in real time.