13G Filing: Nantahala Capital Management and Dover Downs Gaming & Entertainment Inc (DDE)

260095104

If this statement is filed pursuant to Rule 13d-1(b), or
13d-2(b) or (c), check whether the person filing is a:

(a) ¨ Broker or dealer registered under section 15 of the
Act (15 U.S.C. 78o).

(b) ¨ Bank as defined in section 3(a)(6) of the Act (15 U.S.C.
78c).

(c) ¨ Insurance company as defined in section 3(a)(19) of
the Act (15 U.S.C. 78c).

(d) ¨ Investment company registered under section 8 of the
Investment Company Act of 1940 (15 U.S.C 80a-8).

(e) x An investment adviser in accordance with §240.13d-1(b)(1)(ii)(E).

(f) ¨ An employee benefit plan or endowment fund in accordance
with §240.13d-1(b)(1)(ii)(F).

(g) x A parent holding company or control person in
accordance with § 240.13d-1(b)(1)(ii)(G).

(h) ¨ A savings associations as defined in Section 3(b) of
the Federal Deposit Insurance Act (12 U.S.C. 1813).

(i) ¨ A church plan that is excluded from the definition of
an investment company under section 3(c)(14) of the

Investment Company Act of 1940 (15 U.S.C. 80a-3).

(j) ¨ Group, in accordance with §240.13d-1(b)(1)(ii)(J).

Item 4.

Ownership:

Amount Beneficially Owned:

As of November 30, 2017, Nantahala
may be deemed to be the beneficial owner of 1,886,458 Shares held by funds and separately managed accounts under its control,
and as the managing members of Nantahala, each of Messrs. Harkey and Mack may be deemed to be a beneficial owner of those Shares.

Percent of Class:

As of November 30, 2017, each
of the Reporting Persons may be deemed to be the beneficial owner of 10.3% of the total number of Shares outstanding (based upon
information provided by the Issuer on Form 10-Q filed November 6, 2017, there were 18,283,009 Shares outstanding as of October
27, 2017).