Fintech and gaming hardware company Everi is engaged in a legal battle with Koin Payments, a casino payment solutions firm, as reported by SBC Americas.
Koin alleges that Everi is violating antitrust laws with its casino contracts. SBC Americas revealed that the issue dates back to Koin’s deal with Baldini’s Casino, based in the city of Sparks, Nevada, to provide a digital wallet to the venue.
Everi subsequently took the casino to a state court alleging that the Baldini deal had violated the terms of its own agreement with the casino. The firm states that its deal gave it exclusivity as the venue’s cash access provider for digital wallets.
Koin and Baldini then filed a motion to dismiss earlier this year, which was denied. Koin followed this with a suit filed in the Nevada District Court two weeks later, alleging that Everi is unlawfully restraining trade through tying practices, exclusive dealing and attempted monopolisation.
SBC Americas states that it reached out to Everi for comment but the company declined.
However, the company has filed a motion to dismiss Koin’s case. The firm’s central argument is that Koin’s assumption that cash access providers and digital wallets are distinctly separate markets is not concrete.
Everi states that many of Koin’s claims that Everi is taking from the company’s digital wallet business indicate that the two businesses overlap.
It has also countered the tying accusations by saying that just because the company’s partners may choose to make a deal for multiple Everi products doesn’t mean that the company demanded the products be bundled together.
The tying practices referenced by Koin allege that Everi signs contracts with casinos that require the properties to use more than one of Everi’s financial services, which include ATMs, kiosks, cash management and centralised credit.
Koin also claims that Everi contracts include steep penalties, auto-renewals and other elements that make it very difficult for casino partners to switch to a new provider.
Koin has until July 22 to respond to Everi’s motion to dismiss.
