Everi Faces Lawsuit by Koin over Digital Wallet Intellectual Property Violation
In the Thick of a Legal Battle: Koin Mobile Accuses Everi of Anticompetitive Practices
Everi, a major player in the global gambling technology and solutions sector, finds itself embroiled in a fresh lawsuit filed by Koin Mobile, a fellow company specializing in cashless solutions. According to Koin, which enter the industry in 2021, Everi's dominance in the gambling market is being used to squash competition.
Koin Mobile argues that Everi's stronghold in the gambling sector is limiting casinos and their patrons from exploring alternative non-cash funding methods for gaming activities. In the suit, Koin contends that Everi's dominance is achieved by forging exclusive deals with operators, thereby controlling digital wallet markets.
Digital wallets, as Koin explains, offer numerous advantages to casinos, including cheaper funding alternatives, enhanced customer service, improved security features, better patron oversight, and increased systems interoperability. Furthermore, these digital wallets provide a secure and seamless way for gamblers to access their funds, enhancing the overall consumer experience.
Everi offers its digital wallet known as CashClub Wallet, while Koin Mobile has developed the Koin Wallet, which sets it apart thanks to unique features and the ability to cater to general purposes, not just gambling.
Koin alleges that Everi's competitive product prompted the company to assert its industry power. Furthermore, Koin claims that Everi forced casinos and their customers to use CashClub Wallet or forego cashless gaming completely. This strong position within the gambling sector, Koin argues, allows Everi to become a dominant player in the digital wallet market and ultimately strive for total monopoly.
Quoting Koin's lawsuit, "Through anticompetitive tying and exclusive-dealing contracts, Everi has forced casinos and their patrons, who are bound by casino-loyalty programs and a general lack of information, into using only Everi's digital wallet-or no digital wallet at all."
To support its claim, Koin highlights the pending merger between IGT and Everi, valued at approximately $6.2 billion. The combination, according to Koin, will fortify Everi's control over the digital wallet markets.
As a result of Everi's allegedly anticompetitive conduct, Koin asserts that it has suffered millions of dollars in losses associated with missed profits and unnecessary research, marketing, and development costs rendered worthless due to Everi's actions.
- Despite the increasing popularity of online gambling, Koin Mobile alleges that Everi, with its dominance in the gambling sector, is restricting casinos and their patrons from utilizing alternative, non-cash funding methods like digital wallets, such as Koin Wallet, through exclusive deals and anticompetitive practices.
- In the lawsuit against Everi, Koin claims that the integration of technology, particularly digital wallets, could provide numerous advantages to casinos, including cheaper funding options, improved security, better patron oversight, and increased interoperability, but Everi's market domination is preventing such advancements, thus stifling competition in the digital wallet market.
