Casino operations company Everi slams ‘misguided’ lawsuit over digital wallets

Everi Holdings

09/07/2024 19:22

By Mike Scarcella
       July 9 (Reuters) - Casino operations giant Everi
 EVRI.N  has asked a federal judge in Nevada to dismiss a
lawsuit that accused it of trying to thwart competition from
platforms that gambling customers use to make digital payments.
    Everi, which provides financial services, ATMs and slot
machines to casinos, said in a court filing on Monday night that
the lawsuit from digital wallet company Koin Mobile was
“misguided” and “flawed” and should be thrown out. 
    Koin’s lawsuit accused Everi of violating antitrust law in a
bid to dominate the emerging market for virtual wallets for
gaming. Koin’s product — Koin Wallet — competes with Everi’s
CashClub Wallet.
    In its motion to dismiss, Everi denied Koin's central claim
that it bars its cash-access services to casinos that do not
also agree to use its virtual wallet CashClub.
    A spokesperson for Everi and a lawyer Koin did not
immediately respond to requests for comment.
    Everi launched its digital wallet after the Nevada state
gaming commission in 2020 approved the use of such platforms.
Last August, Everi sued Koin in Nevada state court for allegedly
interfering with the company’s contract with the casino
Baldini’s over digital wallet services. 
    Everi said a judge in April ruled the case could move
forward against Koin. Later that month, Koin sued Everi in
Nevada federal court.
    Koin’s lawsuit claims Everi is unlawfully "tying" the use of
its digital wallet to other company services involving
cash-access. The lawsuit also challenged allegedly long-term
exclusive agreements that bar casinos from working with
non-Everi digital wallet providers.
    Everi countered in its filing that the company was not
engaged in "tying" because cash and digital wallets were not
distinguishable products in the gaming industry. Everi also said
there was “vibrant competition” for gaming digital wallets.
    Koin is seeking millions of dollars in damages for lost
profits and lost business opportunities.
    
    The case is Koin Mobile LLC v. Everi Holdings Inc and Everi
Payments Inc, U.S. District Court, District of Nevada, No.
3:24-cv-00178.
    For Koin: Robert Ryan and Paul Swanson of Holland & Hart
    For Everi: Samuel Liversidge and Rachel Brass of Gibson,
Dunn & Crutcher; John Desmond of Dickinson Wright
    
    Read more:
    Casino operations company Everi sued by rival digital wallet
provider

 (Reporting by Mike Scarcella)
 ((Mike.Scarcella@thomsonreuters.com;))