Everi Asks Judge to Dismiss Koin Mobile Antitrust Suit

Published: July 10, 2024, 07:53h.

Last update: July 10, 2024, 07:53h.

Everi wants a federal judge in Nevada to dismiss an antitrust lawsuit that accuses the company of “abusing its power… to stifle competition” in the burgeoning cashless payments market.

Everi, Koin Mobile, Antitrust Suit, Cashless Payments. Cashclub Wallet, Koin Wallet — The Everi CashClub mobile app, pictured above, allows gamblers to place cashless bets. However, the company denies accusations that it has gained a dominant position in the market by tying casinos to “onerous” contracts. (Photo: Everi)

The casino giant described the lawsuit filed by digital payments company Koin Mobile as “baseless” and “flawed” in a court filing on Monday.

Koin claims that Everi illegally forces casinos to use only its own digital payments product by binding them to “onerous” contracts covering its other cash access services.

Market domination

Digital wallets work in a similar way to PayPal or Venmo, but have additional features specific to the heavily regulated casino industry.

They enable users to play cashless by connecting external funding sources, such as credit cards and bank accounts, to smartphone apps that interface with casino management systems.

Everi, a company that supplies slot machines, casino equipment and financial services, estimates it controls between 75% and 90% of cash transactions at land-based casinos across America.

In the lawsuit, Koin claims that Everi’s proposed merger with gaming giant International Game Technology (IGT) will further cement its market dominance.

Koin’s Koin Wallet competes with Everi’s CashClub Wallet. The lawsuit claims that Everi attempted to stifle competition by interfering with Koin’s casino business relationships.

“Flawed” claims

In his motion to dismiss, Everi responded that in 2023, Koin convinced Baldini’s Casino in Sparks, Nevada, to breach its contract with Everi by agreeing to use the Koin wallet. Everi then sued Koin in Nevada state court for intentional interference.

“Plaintiff Koin Mobile seeks to transform the parties’ contractual dispute over a single casino into a broad antitrust lawsuit, accusing defendant Everi of monopolizing and attempting to monopolize multiple purported markets across the country,” Everi’s attorneys wrote in the lawsuit. “Koin’s claims are legally flawed and defective and should all be dismissed.”

The company denied that it engaged in “bundling” because it argued that digital wallets are a substitute for cash access services and therefore the products belong to the same, not separate, product markets.

Everi emphasized that he would not refuse to sell a cash-access product to a casino unless the casino also agrees to use CashClub Wallet. He also claims that there is healthy competition for digital gaming wallets.

Koin is seeking “tens of millions” in damages for lost profits and business opportunities.