Koin Files Lawsuit against Everi, Alleging Digital Wallet Infringement

The leading provider of technology and solutions, powering land-based and online gambling operators across the globe, Everi, was named as a defendant in a new lawsuit filed by Koin Mobile, a rival company within the cashless solutions vertical. In its lawsuit, Koin, which was founded in 2021, outlines that Everi currently holds a significant share of the gambling market by providing licensed operators with its solutions.

However, Koin argues, that its rival is abusing its powerful position to stifle competition in cashless solutions, effectively restricting casinos and preventing their customers, from accessing different non-cash methods to fund gaming activities. In the lawsuit, Koin claimed that Everi has established a strong presence within the gambling sector through exclusive deals with operators, which also enables it to dominate digital wallet markets.

Koin wrote about the benefits of digital wallets, which are proven to benefit casinos by providing “a cheaper funding alternative to cash, along with better customer-service tools, security features, patron oversight, and systems interoperability.” Moreover, the company said that digital wallets help provide a secure way for gamblers to gain access to their funds which in turn enhances the consumer experience.

Currently, Everi offers its own digital wallet called CashClub Wallet. Considering the potential of the sector, Koin has also developed a digital wallet called Koin Wallet. The plaintiff compared its offering to the CashClub Wallet, explaining that Koin Wallet brings unique features. Moreover, Koin explained that its digital wallet can be used for general purposes, in addition to gambling, which is not the case for Everi’s CashClub Wallet which is restricted to casinos only.

Everi Seeks Total Monopoly, Claims Koin

Still, Koin alleged that its competitive product was identified by Everi which is why the company is leveraging its powerful position within the gaming industry. Moreover, the plaintiff alleged that Everi engaged in anticompetitive actions by forcing casinos and their customers to use CashClub Wallet or not benefit from cashless gaming.

This strong presence within the gambling sector enabled Everi to become a dominant company within the digital wallet market, claimed Koin. Additionally, the company alleged that Everi seeks to establish itself as a monopoly for the sector.

“In short, through anticompetitive tying and exclusive-dealing contracts, Everi has forced casinos and their patrons, who are locked in through casino-loyalty programs and a general lack of information, into using only Everi’s digital wallet—or no digital wallet at all. Everi has thus ported its dominant market share in the cash-access markets to the markets for digital wallets. Yet Everi is not content with merely a dominant share of the digital-wallet markets. It seeks total monopoly,“

reads the lawsuit filed by Koin Mobile

Supporting its claim, Koin pointed to the business combination between IGT and Everi, which is expected to deliver a new business valued at $6.2 billion. ” This merger will cement Everi’s control over the markets for digital wallets,” claimed Koin.

According to the plaintiff, the defendant’s actions resulted in millions of dollars in losses related to missed profits and money wasted on research, marketing and development that was “rendered worthless” thanks to Everi’s anticompetitive conduct.