Koin and Everi Pause Litigation to Explore Settlement Options

Recent courtroom developments could mean that the long-standing legal battle between the two companies may soon be nearing its endImage Source: Shutterstock.com

A significant new development in the ongoing legal drama between Everi Holdingsand Koin Mobilecould lead to a possible settlement. The two entities have agreed to a 90-day pause in litigation, potentially seeking to negotiate an end to their ongoing dispute. The decision follows a 28 January settlement conference where the two parties and their lawyers discussed avenues to resolve their differences out of court.

Koin Accuses Everi of Monopolistic Actions

The lawsuit, filed in theNevada District Court, accuses Everi of anticompetitive behavior andseeking to monopolize the digital wallet markets within the gaming sector. Koin alleges that Everi leveraged its market dominance to restrict competitionin the cashless payment service sector, discouraging casinos from considering alternative and competing payment solutions.

According to Koin, Everi leverages exclusive deals with gaming operators to dominate the digital wallet landscape, significantly hindering other providers seeking to establish a market foothold. The plaintiff argues that IGT and Everi’s $6.2 billion merger willfurther entrenchthe company’s growing monopoly in the cashless gaming market, indirectly costing Koin tens of millions in missed profits, wasted research, and marketing expenses.

Everi has denied these allegations, filing a Motion to Dismiss, which was denied without prejudice, meaning that the company can refile the motion if negotiations fail. As of now, the legal battle could still swing either way, with US District Court Magistrate Judge Craig Denneyrejecting Everi’s bid to prevent discovery in October 2024.

Settlement Could Deliver a Sensible Compromise

The 28 January settlement conference, mediated by retired Nevada Supreme Court Justice James Hardesty, initially addressed a specific legal issuewithin the case. However, talks soon evolved, discussing the possibility of abroader settlement, covering both the federal lawsuit and a parallel state court case.

JudgeAnne R. Traum’s 90-day stay temporarily pauses all litigation proceedings, including discovery processes, court hearings, and motion filings. The two parties must submit ajoint status reportat the end of the 90 days, outlining whether they have reached an agreement or if the lawsuit will resume. Either side can request an early terminationof the stay if negotiations prove unproductive.

“The Parties have agreed to stay this matter in its entirety to further settlement discussions and to not incur additional legal expenses during such discussions.”

Nevada District Court filing

As the legal battle moves from the courtroom to the negotiating table, both sides hope to reach an agreement that avoids further costly litigation. While a settlement could resolve this dispute, other similar cases could be inevitableas the swift expansion of cashless gaming affects competition and innovation within the sector.