A leading global provider of gaming technology and solutions, Everi, is facing accusations in a new lawsuit lodged by competing company, Koin Mobile, which operates in the cashless solutions vertical. The lawsuit charges that Everi, which holds a significant portion of the gaming market, is leveraging its influence to suppress its competitors, giving licenced operators no choice but to use its own solutions.
Koin contends that Everi is exploiting its formidable market standing to hinder competition in the space of cashless solutions, effectively limiting casino operators and their customers from accessing diverse non-cash techniques to finance gaming activities. Koin accuses Everi of gaining a robust foothold in the gambling industry through exclusive agreements with operators, thereby permitting it to dominate the digital wallet markets.
The benefits of employing digital wallets were underscored by Koin, citing advantages such as a more cost-effective alternative to cash, improved customer service tools, superior security features, patron oversight, and system interoperability. Furthermore, Koin stated that digital wallets provide a safe avenue for gamers to access their funds, ultimately boosting the consumer experience.
At present, Everi offers a proprietary digital wallet called the CashClub Wallet. Seeing the sector’s potential, Koin has developed its own digital wallet called the Koin Wallet. Koin distinguished its product from the CashClub Wallet, highlighting unique features and asserting that its digital wallet serves general purposes, in contrast to Everi’s CashClub Wallet which is exclusively for gaming activities in casinos.
Koin Accuses Everi of Monopolistic Intentions
Koin maintains that Everi identified the potential threat posed by its competitive product and has consequently been leveraging its influential status in the gaming industry. The plaintiff asserts that Everi engaged in anticompetitive actions by pressuring casinos and their customers to adopt the CashClub Wallet or forego cashless gaming benefits.
According to the allegations made by Koin, Everi’s strong presence in the gambling sector has positioned it as a dominant force within digital wallet markets, also arguing that Everi intends to monopolize the sector.
“In essence, through anti-competitive tying and exclusive-dealing contracts, Everi has pressured casinos and their patrons, who are bound by casino-loyalty programs and an overall lack of information, to rely solely on Everi’s digital wallet—or abstain from any digital wallet. Consequently, Everi has transferred its vast market share in cash-access markets to the digital wallet markets. Yet, Everi is not satisfied with just a dominant portion of the digital-wallet markets. Its aim is complete monopoly.”
Reads the lawsuit lodged by Koin Mobile
Backing its claims, Koin highlighted the impending business merger between IGT and Everi, projected to culminate in a new business valued at a massive $6.2 billion. Koin alleges that this merger will solidify Everi’s control over the digital wallet market.
Koin claims that the defendant’s alleged actions have incurred financial losses amounting to millions of dollars due to lost profits, and money frittered away on fruitless research, marketing, and development, effectively devalued by Everi’s supposed anti-competitive behaviour.
