Koin Secures Initial Victory in Everi Federal Lawsuit

A lawsuit between two technology companies that power the gambling sector with cashless solutions recently picked up speed. Earlier this year, Koin Mobile, a company providing cashless solutions, filed a lawsuit against its rival, Everi, a recognizable technology and solutions provider that operates in the same vertical, alleging digital wallet infringement.

Koin Will Continue Its Investigation Into Everi’s Conduct

Now, as announced by CDC Gaming, Koin secured an initial victory in its lawsuit against Everi after a federal judge rejected the latter’s bid to prevent discovery. The action came despite Everi’s attempt to dismiss the anticompetitive lawsuit. This effort currently remains under review.

The initial victory follows a decision from last week. At the time, US District Court Magistrate Judge Craig Denney determined in a preliminary review that Koin’s claims are plausible. In its lawsuit, Koin claimed that Everi leveraged its contracts to exclusively tie its customers to its digital wallet. This, according to Koin, represented anticompetitive behavior as it effectively restricted the competition in the cashless gaming vertical.

Gary Larkin, Koin’s president, commented on the topic, highlighting the importance of the court’s work in this legal battle. “Judge Denney considered a half-dozen briefs and held lengthy oral arguments on the issue, and we’re gratified to move forward with our investigation of Everi’s conduct,” he explained.

Larking spoke about the importance a competitive market that has a level playing field, and this applies to Koin and Everi alike. “Everyone benefits from competition. It’s the American way. This ruling is another step forward in what we know will be a long fight, but it’s worth it,” he explained.

“Our goal is and always has been to level the playing field for digital-payment providers: Koin, Everi and the rest.“

Gary Larkin, president at Koin

Everi Disagrees with Koin’s Claims

Upon filing its motion to dismiss Koin’s lawsuit earlier this year, Everi deemed the company’s allegations “misguided and flawed.” In its request, Everi argued that Koin sought to transform a dispute involving a single casino into a large-scale anti-competitive case.

At the time, Everi wrote: “Through this action, Plaintiff Koin Mobile seeks to transform the parties’ contract dispute concerning a single casino into a sweeping antitrust lawsuit alleging that defendant Everi monopolized and attempted to monopolize multiple alleged markets across the country.” The company also rejected Koin’s claims that it offered a “cheaper funding alternative for cash,” encouraging the court to dismiss the lawsuit.