This spring, two technology companies offering cashless solutions to the gambling sector, entered into a legal battle against each other. Everi, the leading provider of solutions and technology, powering iGaming and land-based operators, was accused by one of its rivals, Koin Mobile, of anticompetitive behavior.
Moreover, Koin alleged that Everi seeks to establish a monopoly within the digital wallet market for the gambling industry. The company acknowledged Everi’s strong position across the globe, claiming that through exclusive agreements it seeks to establish dominance over the digital wallet provision market.
Earlier this week, Everi filed its arguments with the US District Court for the District of Nevada, asking a judge to dismiss the lawsuit filed by Koin. In its motion to dismiss the lawsuit, Everi alleged that its rival attempted to transform a dispute that involved a single casino into a massive anti-competitive case.
Both Koin and Everi offer digital wallet services. In Everi’s case, the solution is called CashClub Wallet, while its rival’s digital wallet is called Koin Wallet.
“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,“
reads a motion to dismiss the lawsuit filed by Everi
Koin’s “Baseless Antitrust Claims” Follow Legal Action Filed by Everi
One of the main concerns in Koin’s lawsuit against Everi involves the use of digital wallets under exclusive agreements. The company claimed that Everi abused its strong market position by restricting casino customers from using its own non-cash method for such transactions.
Moreover, Koin argued that its digital wallet offered “a cheaper funding alternative to cash, along with better customer-service tools, security features, patron oversight, and systems interoperability.”
It’s not a surprise that Everi disagreed with the allegations. In the company’s recent motion to dismiss, it deemed Koin’s claims as “flawed,” as well as “misguided.” Ultimately, as noted, Everi asked a judge to dismiss all claims filed by Koin.
“Koin’s claims are misguided and flawed as a matter of law, and they should all be dismissed,“
wrote Everi
Everi described a case that involved one of its clients who breached an exclusive contract. The case involved Baldini’s Sports Casino which agreed to have Everi provide exclusively its cash-access services.
However, Everi claimed that Koin “convinced Baldini’s to breach that contract by agreeing to use Koin’s digital wallet.” This breach resulted in a lawsuit filed by Everi against Koin.
Although Koin attempted to dismiss the motion, a Nevada state court denied the request. Everi claimed that in response, Koin filed the recent “baseless antitrust claims.”