EVERI HOLDINGS INC., 10-Q filed on 8/9/2023
Quarterly Report
v3.23.2
Cover - shares
 6 Months Ended
Jun. 30, 2023
Aug. 04, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2023  
Document Transition Report false  
Entity File Number 001-32622  
Entity Registrant Name EVERI HOLDINGS INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-0723270  
Entity Address, Address Line One 7250 S. Tenaya Way  
Entity Address, Address Line Two Suite 100  
Entity Address, City or Town Las Vegas  
Entity Address, State or Province NV  
Entity Address, Postal Zip Code 89113  
City Area Code 800  
Local Phone Number 833-7110  
Title of 12(b) Security Common Stock, $0.001 par value  
Trading Symbol EVRI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   87,992,981
Entity Central Index Key 0001318568  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
v3.23.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Revenues        
Total revenues $ 208,717 $ 197,222 $ 409,189 $ 372,838
Costs and expenses        
Operating expenses 61,390 55,051 120,582 104,876
Research and development 16,637 14,064 32,733 26,583
Depreciation 19,522 15,678 38,471 30,898
Amortization 14,173 14,646 28,537 28,279
Total costs and expenses 155,445 142,673 303,871 265,698
Operating income 53,272 54,549 105,318 107,140
Other expenses        
Interest expense, net of interest income 20,136 12,294 38,106 23,642
Total other expenses 20,136 12,294 38,106 23,642
Income before income tax 33,136 42,255 67,212 83,498
Income tax provision 5,740 9,734 11,750 19,455
Net income 27,396 32,521 55,462 64,043
Foreign currency translation gain (loss) 118 (2,606) (68) (2,026)
Comprehensive income $ 27,514 $ 29,915 $ 55,394 $ 62,017
Earnings per share        
Basic (in dollars per share) $ 0.31 $ 0.35 $ 0.62 $ 0.70
Diluted (in dollars per share) $ 0.29 $ 0.33 $ 0.59 $ 0.65
Weighted average common shares outstanding        
Basic (in shares) 88,213 91,710 88,866 91,560
Diluted (in shares) 93,472 98,706 94,708 99,249
Games        
Revenues        
Total revenues $ 113,132 $ 112,347 $ 220,506 $ 210,683
Costs and expenses        
Total cost of revenues [1] 28,529 29,516 55,584 52,293
Operating expenses 20,896 20,680 41,768 38,026
Research and development 11,172 9,467 21,825 17,097
Depreciation 17,265 13,334 33,504 26,315
Amortization 10,875 10,467 21,151 20,272
Total costs and expenses 88,737 83,464 173,832 154,003
Operating income 24,395 28,883 46,674 56,680
Games | Gaming operations        
Revenues        
Total revenues 77,781 74,079 153,090 144,417
Costs and expenses        
Total cost of revenues [1] 8,388 6,122 15,194 12,117
Games | Gaming equipment and systems        
Revenues        
Total revenues 35,351 38,268 67,416 66,266
Costs and expenses        
Total cost of revenues [1] 20,141 23,394 40,390 40,176
FinTech        
Revenues        
Total revenues 95,585 84,875 188,683 162,155
Costs and expenses        
Total cost of revenues [1] 15,194 13,718 27,964 22,769
Operating expenses 40,494 34,371 78,814 66,850
Research and development 5,465 4,597 10,908 9,486
Depreciation 2,257 2,344 4,967 4,583
Amortization 3,298 4,179 7,386 8,007
Total costs and expenses 66,708 59,209 130,039 111,695
Operating income 28,877 25,666 58,644 50,460
FinTech | Financial access services        
Revenues        
Total revenues 55,660 50,876 111,874 100,755
Costs and expenses        
Total cost of revenues [1] 2,697 2,470 5,596 4,645
FinTech | Software and other        
Revenues        
Total revenues 23,995 18,997 48,210 36,864
Costs and expenses        
Total cost of revenues [1] 1,923 886 3,346 1,821
FinTech | Hardware        
Revenues        
Total revenues 15,930 15,002 28,599 24,536
Costs and expenses        
Total cost of revenues [1] $ 10,574 $ 10,362 $ 19,022 $ 16,303
[1] (1) Exclusive of depreciation and amortization.
v3.23.2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Current assets    
Cash and cash equivalents $ 210,618 $ 293,394
Settlement receivables 83,087 263,745
Trade and other receivables, net of allowances for credit losses of $5,057 and $4,855 at June 30, 2023 and December 31, 2022, respectively 117,392 118,895
Inventory 74,403 58,350
Prepaid expenses and other current assets 43,342 38,822
Total current assets 528,842 773,206
Non-current assets    
Property and equipment, net 133,475 133,645
Goodwill 740,344 715,870
Other intangible assets, net 255,408 238,275
Other receivables 28,280 27,757
Deferred tax assets, net 532 1,584
Other assets 25,216 27,906
Total non-current assets 1,183,255 1,145,037
Total assets 1,712,097 1,918,243
Current liabilities    
Settlement liabilities 265,274 467,903
Accounts payable and accrued expenses 200,279 217,424
Current portion of long-term debt 3,000 6,000
Total current liabilities 468,553 691,327
Non-current liabilities    
Deferred tax liabilities, net 13,015 5,994
Long-term debt, less current portion 970,230 971,995
Other accrued expenses and liabilities 18,116 31,286
Total non-current liabilities 1,001,361 1,009,275
Total liabilities 1,469,914 1,700,602
Commitments and contingencies (Note 12)
Stockholders’ equity    
Convertible preferred stock, $0.001 par value, 50,000 shares authorized and no shares outstanding at June 30, 2023 and December 31, 2022, respectively 0 0
Common stock, $0.001 par value, 500,000 shares authorized and 122,295 and 87,695 shares issued and outstanding at June 30, 2023, respectively, and 119,390 and 88,036 shares issued and outstanding at December 31, 2022, respectively 122 119
Additional paid-in capital 544,704 527,465
Retained earnings (accumulated deficit) 34,196 (21,266)
Accumulated other comprehensive loss (4,265) (4,197)
Treasury stock, at cost, 34,600 and 31,353 shares at June 30, 2023 and December 31, 2022, respectively (332,574) (284,480)
Total stockholders’ equity 242,183 217,641
Total liabilities and stockholders’ equity $ 1,712,097 $ 1,918,243
v3.23.2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Current assets    
Allowances for doubtful accounts $ 5,057 $ 4,855
Stockholders’ equity    
Convertible preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Convertible preferred stock authorized (in shares) 50,000,000 50,000,000
Convertible preferred stock outstanding (in shares) 0 0
Common stock par value (in dollars per share) $ 0.001 $ 0.001
Common stock authorized (in shares) 500,000,000 500,000,000
Common stock issued (in shares) 122,295,000 119,390,000
Common stock outstanding (in shares) 87,695,000 88,036,000
Treasury stock (in shares) 34,600,000 31,353,000
v3.23.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities    
Net income $ 55,462 $ 64,043
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation 38,471 30,898
Amortization 28,537 28,279
Non-cash lease expense 2,725 2,257
Amortization of financing costs and discounts 1,427 1,427
Loss on sale or disposal of assets 350 289
Accretion of contract rights 4,670 4,897
Provision for credit losses 5,591 4,275
Deferred income taxes 6,065 18,548
Reserve for inventory obsolescence 867 468
Stock-based compensation 9,653 10,311
Changes in operating assets and liabilities:    
Settlement receivables 180,816 30,041
Trade and other receivables (898) (8,888)
Inventory (13,962) (15,157)
Prepaid expenses and other assets (656) (23,892)
Settlement liabilities (202,811) (87,607)
Accounts payable and accrued expenses (20,107) 14,046
Net cash provided by operating activities 96,200 74,235
Cash flows from investing activities    
Capital expenditures (60,035) (60,044)
Acquisitions, net of cash acquired (59,151) (33,250)
Proceeds from sale of property and equipment 101 67
Placement fee agreements 0 (547)
Net cash used in investing activities (119,085) (93,774)
Cash flows from financing activities    
Repayments of term loan (6,000) (3,000)
Proceeds from exercise of stock options 7,115 719
Treasury stock - restricted stock vesting, net of shares withheld (8,071) (11,582)
Treasury stock - repurchase of shares (40,000) (30,298)
Payment of contingent consideration, acquisition (10,412) 0
Net cash used in financing activities (57,368) (44,161)
Effect of exchange rates on cash and cash equivalents 382 (450)
Cash, cash equivalents and restricted cash    
Net decrease for the period (79,871) (64,150)
Balance, beginning of the period 295,063 303,726
Balance, end of the period 215,192 239,576
Supplemental cash disclosures    
Cash paid for interest 42,474 22,259
Cash paid for income tax, net 4,231 87
Supplemental non-cash disclosures    
Accrued and unpaid capital expenditures 1,880 3,587
Transfer of leased gaming equipment to inventory $ 3,636 $ 4,078
v3.23.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings/Accumulated Deficit
Accumulated Other Comprehensive Loss
Treasury Stock
Balance, beginning of period (in shares) at Dec. 31, 2021   116,996        
Balance, beginning of period at Dec. 31, 2021 $ 174,500 $ 117 $ 505,757 $ (141,755) $ (1,455) $ (188,164)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 31,522     31,522    
Foreign currency translation 580       580  
Stock-based compensation expense 4,811   4,811      
Exercise of options (in shares)   164        
Exercise of options 699   699      
Restricted share vesting and withholding (in shares)   61        
Restricted stock vesting, net of shares withheld (400)         (400)
Balance, end of period (in shares) at Mar. 31, 2022   117,221        
Balance, end of period at Mar. 31, 2022 211,712 $ 117 511,267 (110,233) (875) (188,564)
Balance, beginning of period (in shares) at Dec. 31, 2021   116,996        
Balance, beginning of period at Dec. 31, 2021 174,500 $ 117 505,757 (141,755) (1,455) (188,164)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 64,043          
Balance, end of period (in shares) at Jun. 30, 2022   119,109        
Balance, end of period at Jun. 30, 2022 202,629 $ 119 516,785 (77,712) (3,481) (233,082)
Balance, beginning of period (in shares) at Mar. 31, 2022   117,221        
Balance, beginning of period at Mar. 31, 2022 211,712 $ 117 511,267 (110,233) (875) (188,564)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 32,521     32,521    
Foreign currency translation (2,606)       (2,606)  
Stock-based compensation expense 5,500   5,500      
Exercise of options (in shares)   5        
Exercise of options 20   20      
Restricted share vesting and withholding (in shares)   1,883        
Restricted stock vesting, net of shares withheld (11,182) $ 2 (2)     (11,182)
Repurchase of shares (33,336)         (33,336)
Balance, end of period (in shares) at Jun. 30, 2022   119,109        
Balance, end of period at Jun. 30, 2022 $ 202,629 $ 119 516,785 (77,712) (3,481) (233,082)
Balance, beginning of period (in shares) at Dec. 31, 2022 88,036 119,390        
Balance, beginning of period at Dec. 31, 2022 $ 217,641 $ 119 527,465 (21,266) (4,197) (284,480)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 28,066     28,066    
Foreign currency translation (186)       (186)  
Stock-based compensation expense 4,825   4,825      
Exercise of options (in shares)   702        
Exercise of options 5,234 $ 1 5,233      
Restricted share vesting and withholding (in shares)   53        
Restricted stock vesting, net of shares withheld (333)         (333)
Balance, end of period (in shares) at Mar. 31, 2023   120,145        
Balance, end of period at Mar. 31, 2023 $ 255,247 $ 120 537,523 6,800 (4,383) (284,813)
Balance, beginning of period (in shares) at Dec. 31, 2022 88,036 119,390        
Balance, beginning of period at Dec. 31, 2022 $ 217,641 $ 119 527,465 (21,266) (4,197) (284,480)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) $ 55,462          
Balance, end of period (in shares) at Jun. 30, 2023 87,695 122,295        
Balance, end of period at Jun. 30, 2023 $ 242,183 $ 122 544,704 34,196 (4,265) (332,574)
Balance, beginning of period (in shares) at Mar. 31, 2023   120,145        
Balance, beginning of period at Mar. 31, 2023 255,247 $ 120 537,523 6,800 (4,383) (284,813)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 27,396     27,396    
Foreign currency translation 118       118  
Stock-based compensation expense 4,828   4,828      
Exercise of options (in shares)   494        
Exercise of options 2,353   2,353      
Restricted share vesting and withholding (in shares)   1,656        
Restricted stock vesting, net of shares withheld (7,736)         (7,738)
Repurchase of shares $ (40,023)         (40,023)
Balance, end of period (in shares) at Jun. 30, 2023 87,695 122,295        
Balance, end of period at Jun. 30, 2023 $ 242,183 $ 122 $ 544,704 $ 34,196 $ (4,265) $ (332,574)
v3.23.2
BUSINESS
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BUSINESS BUSINESS
Everi Holdings Inc. (“Everi Holdings,” or “Everi”) is a holding company, the assets of which are the issued and outstanding shares of capital stock of each of Everi Payments Inc. (“Everi FinTech” or “FinTech”) and Everi Games Holding Inc., which owns all of the issued and outstanding shares of capital stock of Everi Games Inc. (“Everi Games” or “Games”). Unless otherwise indicated, the terms the “Company,” “we,” “us,” and “our” refer to Everi Holdings together with its consolidated subsidiaries.
Everi develops and offers products and services that provide gaming entertainment, improve our customers’ patron engagement, and help our casino customers operate their businesses more efficiently. We develop and supply entertaining game content, gaming machines and gaming systems and services for land-based and iGaming operators. Everi is a provider of financial technology solutions that power casino floors, provide operational efficiencies, and help fulfill regulatory requirements. The Company also develops and supplies player loyalty tools and mobile-first applications that enhance patron engagement for our customers and venues in the casino, sports, entertainment and hospitality industries. In addition, the Company provides bingo solutions through its consoles, electronic gaming tablets and related systems.
Everi reports its financial performance, and organizes and manages its operations, across the following two business segments: (i) Games and (ii) Financial Technology Solutions (“FinTech”).
Everi Games provides gaming operators with gaming technology and entertainment products and services, including: (i) gaming machines, primarily comprising Class II, Class III and Historic Horse Racing (“HHR”) slot machines placed under participation or fixed-fee lease arrangements or sold to casino customers; (ii) providing and maintaining the central determinant systems for the video lottery terminals (“VLTs”) installed in the State of New York and similar technology in certain tribal jurisdictions; (iii) business-to-business (“B2B”) digital online gaming activities; and (iv) bingo solutions through consoles, integrated electronic gaming tablets and related systems.
Everi FinTech provides gaming operators with financial technology products and services, including: (i) financial access and related services supporting digital, cashless and physical cash options across mobile, assisted and self-service channels; (ii) loyalty and marketing software and tools, regulatory and compliance (“RegTech”) software solutions, other information-related products and services, and hardware maintenance services; and (iii) associated casino patron self-service hardware that utilizes our financial access, software and other services. We also develop and offer mobile-first applications aimed at enhancing patron engagement for customers in the casino, sports, entertainment, and hospitality industries. Our solutions are secured using an end-to-end security suite to protect against cyber-related attacks, allowing us to maintain appropriate levels of security. These solutions include: access to cash and cashless funding at gaming facilities via Automated Teller Machine (“ATM”) debit withdrawals, credit card financial access transactions, and point of sale (“POS”) debit card purchases at casino cages, kiosk and mobile POS devices; accounts for the CashClub Wallet, check warranty services, self-service loyalty and fully integrated kiosk maintenance services; self-service loyalty tools and promotion management software; compliance, audit, and data software; casino credit data and reporting services; marketing and promotional offering subscription-based services; and other ancillary offerings.
v3.23.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
Our Financial Statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Some of the information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. The results for the three and six months ended June 30, 2023 are not necessarily indicative of results to be expected for the full fiscal year. The Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the most recently filed Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report”).
Restricted Cash
Our restricted cash primarily consists of: (i) funds held in connection with certain customer agreements; (ii) funds held in connection with a sponsorship agreement; and (iii) wide-area progressive (“WAP”)-related restricted funds. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows for the six months ended June 30, 2023 (in thousands).
Classification on our Balance Sheets
At June 30, 2023
At December 31, 2022
Cash and cash equivalentsCash and cash equivalents$210,618 $293,394 
Restricted cash - currentPrepaid expenses and other current assets4,473 1,568 
Restricted cash - non-currentOther assets101 101 
Total$215,192 $295,063 
Fair Values of Financial Instruments
The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument.
The carrying amount of cash and cash equivalents, restricted cash, settlement receivables, short-term trade and other receivables, settlement liabilities, accounts payable, and accrued expenses approximate fair value due to the short-term maturities of these instruments. The fair value of the long-term trade and loans receivable is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. The fair value of long-term accounts payable is estimated by discounting the total obligation. As of June 30, 2023 and December 31, 2022, the fair value of trade and loans receivable approximated the carrying value due to contractual terms generally being slightly over 12 months. The fair value of our borrowings is estimated based on various inputs to determine a market price, such as: market demand and supply, size of tranche, maturity, and similar instruments trading in more active markets. The estimated fair value and outstanding balances of our borrowings are as follows (in thousands):
 Level of HierarchyFair ValueOutstanding Balance
June 30, 2023   
$600 million Term Loan
2$586,562 $586,500 
$400 million Unsecured Notes
2$353,000 $400,000 
December 31, 2022   
$600 million Term Loan
2$588,560 $592,500 
$400 million Unsecured Notes
2$346,000 $400,000 
The fair values of our borrowings were determined using Level 2 inputs based on quoted market prices for these securities.
Reclassification of Balances
Certain amounts in the accompanying Financial Statements have been reclassified to be consistent with the current year presentation. These reclassifications had no effect on net income for the prior periods.
Recent Accounting Guidance
As of June 30, 2023, no recent accounting guidance is expected to have a significant impact on our Financial Statements.
v3.23.2
REVENUES
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Overview
We evaluate the recognition of revenue based on the criteria set forth in Accounting Standards Codification (“ASC”) 606 — Revenue from Contracts with Customers and ASC 842 — Leases, as appropriate. We recognize revenue upon transferring control of goods or services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We enter into contracts with customers that include various performance obligations consisting of goods, services, or combinations of goods and services. Timing of the transfer of control varies based on the nature of the contract. We recognize revenue net of any sales and other taxes collected from customers, which are subsequently remitted to governmental authorities and are not included in revenues or operating expenses. We measure revenue based on the consideration specified in a contract with a customer and adjusted, as necessary.
Disaggregation of Revenues
We disaggregate revenues based on the nature and timing of the cash flows generated by such revenues as presented in “Note 17 — Segment Information.”
Contract Balances
Since our contracts may include multiple performance obligations, there is often a timing difference between cash collections and the satisfaction of such performance obligations and revenue recognition. Such arrangements are evaluated to determine whether contract assets and liabilities exist. We generally record contract assets when the timing of billing differs from when revenue is recognized due to contracts containing specific performance obligations that are required to be met prior to a customer being invoiced. We generally record contract liabilities when cash is collected in advance of us satisfying performance obligations, including those that are satisfied over a period of time. Balances of our contract assets and contract liabilities may fluctuate due to timing of cash collections.
The following table summarizes our contract assets and contract liabilities arising from contracts with customers (in thousands):
20232022
Contract assets(1)
Balance, beginning of period$22,417 $15,221 
Balance, end of period21,046 16,325 
         (Decrease) increase$(1,371)$1,104 
Contract liabilities(2)
Balance, beginning of period$53,419 $36,615 
Balance, end of period56,106 48,730 
         Increase$2,687 $12,115 
(1) Contract assets are included within trade and other receivables, net and other receivables in our Balance Sheets.
(2) Contract liabilities are included within accounts payable and accrued expenses and other accrued expenses and liabilities in our Balance Sheets.
We recognized approximately $31.4 million and $21.1 million in revenue that was included in the beginning contract liabilities balance during the six months ended June 30, 2023 and 2022, respectively.
Games Revenues
Our products and services include electronic gaming devices, such as Native American Class II offerings and other electronic bingo products, Class III slot machine offerings, HHR offerings, integrated electronic bingo gaming tablets, VLTs installed in the State of New York and similar technology in certain tribal jurisdictions, B2B digital online gaming activities, accounting and central determinant systems, and other back-office systems. We conduct our Games segment business based on results generated from the following major revenue streams: (i) Gaming Operations; and (ii) Gaming Equipment and Systems.
We recognize our Gaming Operations revenue based on criteria set forth in ASC 842 or ASC 606, as applicable. The amount of lease revenue included in our Gaming Operations revenues and recognized under ASC 842 was approximately $51.3 million and $100.8 million for the three and six months ended June 30, 2023, respectively, and $49.5 million and $96.6 million for the three and six months ended June 30, 2022, respectively.
FinTech Revenues
Our FinTech products and services include solutions that we offer to gaming establishments to provide their patrons with financial access and funds-based services supporting digital, cashless and physical cash options across mobile, assisted and self-service channels along with related loyalty and marketing tools, and other information-related products and services. We also develop and offer mobile-first applications aimed at enhancing patron engagement for customers in the casino, sports, entertainment, and hospitality industries. In addition, our services operate as part of an end-to-end security suite to protect against cyber-related attacks, allowing us to maintain appropriate levels of security. These solutions include: access to cash and cashless funding at gaming facilities via ATM debit withdrawals, credit card financial access transactions, and POS debit card purchases at casino cages, kiosk and mobile POS devices; accounts for the CashClub Wallet, check warranty services, self-service loyalty and fully integrated kiosk maintenance services; self-service loyalty tools and promotion management software; compliance, audit, and data software; casino credit data and reporting services; marketing and promotional offering subscription-based services; and other ancillary offerings. We conduct our FinTech segment business based on results generated from the following major revenue streams: (i) Financial Access Services; (ii) Software and Other; and (iii) Hardware.
Hardware revenues are derived from the sale of our financial access and loyalty kiosks and related equipment and are accounted for under ASC 606, unless such transactions meet the definition of a sales type or direct financing lease, which are accounted for under ASC 842. We did not have any material financial access kiosk and related equipment sales contracts accounted for under ASC 842 during the three and six months ended June 30, 2023 and 2022.
v3.23.2
LEASES
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
LEASES LEASES
Lessee
Balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance Sheets
At June 30, 2023
At December 31, 2022
Assets
Operating lease right-of-use (“ROU”) assetsOther assets, non-current$15,271 $17,169 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$6,705 $6,507 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$11,967 $14,738 
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Cash paid for:
Long-term operating leases$1,862 $1,642 $3,574 $3,310 
Short-term operating leases$473 $398 $845 $807 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
$766 $504 $852 $6,451 
Other information related to lease terms and discount rates is as follows:
At June 30, 2023At December 31, 2022
Weighted Average Remaining Lease Term (in years):
Operating leases2.943.37
Weighted Average Discount Rate:
Operating leases4.79 %4.72 %
Components of lease expense are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Operating Lease Cost:
Operating lease cost
$1,559 $1,467 $3,036 $2,829 
Variable lease cost $306 $364 $625 $643 

Maturities of lease liabilities are summarized as follows as of June 30, 2023 (in thousands):

Year Ending December 31, Amount
2023 (excluding the six months ended June 30, 2023)
$3,805 
2024
7,066 
2025
5,987 
2026
2,200 
2027
608 
Thereafter359 
Total future minimum lease payments 20,025 
Less: Amount representing interest 1,353 
Present value of future minimum lease payments18,672 
Less: Current operating lease obligations6,705 
Long-term lease obligations$11,967 
The Company entered into a real estate lease that has not yet commenced as of June 30, 2023 with a term of ten years and future minimum lease payments of approximately $27.3 million.
LEASES LEASES
Lessee
Balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance Sheets
At June 30, 2023
At December 31, 2022
Assets
Operating lease right-of-use (“ROU”) assetsOther assets, non-current$15,271 $17,169 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$6,705 $6,507 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$11,967 $14,738 
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Cash paid for:
Long-term operating leases$1,862 $1,642 $3,574 $3,310 
Short-term operating leases$473 $398 $845 $807 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
$766 $504 $852 $6,451 
Other information related to lease terms and discount rates is as follows:
At June 30, 2023At December 31, 2022
Weighted Average Remaining Lease Term (in years):
Operating leases2.943.37
Weighted Average Discount Rate:
Operating leases4.79 %4.72 %
Components of lease expense are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Operating Lease Cost:
Operating lease cost
$1,559 $1,467 $3,036 $2,829 
Variable lease cost $306 $364 $625 $643 

Maturities of lease liabilities are summarized as follows as of June 30, 2023 (in thousands):

Year Ending December 31, Amount
2023 (excluding the six months ended June 30, 2023)
$3,805 
2024
7,066 
2025
5,987 
2026
2,200 
2027
608 
Thereafter359 
Total future minimum lease payments 20,025 
Less: Amount representing interest 1,353 
Present value of future minimum lease payments18,672 
Less: Current operating lease obligations6,705 
Long-term lease obligations$11,967 
The Company entered into a real estate lease that has not yet commenced as of June 30, 2023 with a term of ten years and future minimum lease payments of approximately $27.3 million.
v3.23.2
BUSINESS COMBINATIONS
 6 Months Ended
Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
BUSINESS COMBINATIONS BUSINESS COMBINATIONS
We account for business combinations in accordance with ASC 805 — Business Combinations, which requires that the identifiable assets acquired and liabilities assumed be recorded at their estimated fair values on the acquisition date separately from goodwill, which is the excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities. We include the results of operations of an acquired business starting from the acquisition date.

eCash Holdings Pty Limited
On March 1, 2022 (the “eCash Closing Date”), the Company acquired the stock of eCash Holdings Pty Limited (“eCash”). Under the terms of the stock purchase agreement, we paid the seller AUD$20 million (approximately USD$15 million) on the eCash Closing Date and we paid the seller additional consideration of AUD$5.0 million (approximately USD$3.4 million) approximately one year following the eCash Closing Date, with a final expected payment of AUD$6.5 million to be paid approximately two years following the eCash Closing Date. In addition, we paid approximately AUD$8.7 million (approximately USD$6.0 million) for the excess net working capital during the second quarter of 2022. We finalized our measurement period adjustments and recorded approximately $2.3 million primarily related to deferred taxes during the quarter ending March 31, 2023. The acquisition did not have a significant impact on our results of operations or financial condition.
Intuicode Gaming Corporation
On April 30, 2022 (the “Intuicode Closing Date”), the Company acquired the stock of Intuicode Gaming Corporation (“Intuicode”), a privately owned game development and engineering firm focused on HHR games. Under the terms of the stock purchase agreement, we paid the seller $12.5 million on the Intuicode Closing Date of the transaction, a net working capital payment of $1.6 million during the second quarter of 2022 and $6.4 million based on the achievement of a certain revenue target one year following the Intuicode Closing Date. In addition, we expect to make a final payment of $4.6 million based on the achievement of a certain revenue target two years following the Intuicode Closing Date. We finalized our measurement period adjustments and recorded approximately $1.3 million primarily related to the final payment and deferred taxes during the quarter ended June 30, 2023. The acquisition did not have a significant impact on our results of operations or financial condition.
Venuetize, Inc.

On October 14, 2022 (the “Venuetize Closing Date”), the Company acquired certain strategic assets of Venuetize, Inc. (“Venuetize”), a privately owned innovator of mobile-first technologies that provide an advanced guest engagement and m-commerce platform for the sports, entertainment and hospitality industries. Under the terms of the asset purchase agreement, we paid the seller $18.2 million on the Venuetize Closing Date. In addition, we expect to pay approximately $2.8 million in contingent consideration based upon the achievement of certain revenue targets on the twelve-month, twenty-four month and thirty-month anniversaries of the Venuetize Closing Date. We expect the total consideration for this acquisition to be approximately $21.0 million. The acquisition did not have a significant impact on our results of operations or financial condition.

The fair value of the contingent consideration was based on Level 3 inputs utilizing a discounted cash flow methodology. The estimates and assumptions included projected future revenues of the acquired business and a discount rate of approximately 7%. Contingent consideration to be paid is comprised of a short-term component that is recorded in accounts payable and accrued expenses and a long-term component payable within two years recorded in other accrued expenses and liabilities in our Balance Sheets. The change in fair value of the contingent consideration during the period ended June 30, 2023 was not material.

The estimates and assumptions used include the projected timing and amount of future cash flows and discount rates reflecting risk inherent in the future cash flows. The estimated fair values of assets acquired and liabilities assumed and resulting goodwill are subject to adjustment as the Company finalizes its purchase price accounting. The significant items for which a final fair value has not been determined included, but are not limited to: the valuation and estimated useful lives of intangible assets, deferred and unearned revenues, and deferred income taxes. We do not expect our fair value determinations to materially change; however, there may be differences between the amounts recorded at the Venuetize Closing Date and the final fair value analysis, which we expect to complete no later than the fourth quarter of 2023.

VKGS LLC

On May 1, 2023 (the “Video King Closing Date”), the Company acquired certain strategic assets of VKGS LLC (“Video King”), a privately owned leading provider of integrated electronic bingo gaming tablets, video gaming content, instant win games and systems. Under the terms of the purchase agreement, we paid the seller approximately $61.0 million, inclusive of a net
working capital payment on the Video King Closing Date. We also made an additional net working capital payment of $0.3 million post-closing, early in the third quarter of 2023. The acquisition did not have a significant impact on our results of operations or financial condition.

The total preliminary purchase consideration for Video King was as follows (in thousands, at fair value):

Amount
Purchase consideration
Cash consideration paid at closing(1)
$61,013 
Cash consideration to be paid post-closing254 
Total purchase consideration$61,267 

(1) Current assets acquired included approximately $1.9 million in cash.

The transaction was accounted for using the acquisition method of accounting, which requires, among other things, the assets acquired and liabilities assumed be recognized at their respective fair values as of the acquisition date. The excess of the purchase price over those fair values was recorded as goodwill, which will be amortized for tax purposes. The goodwill recognized is primarily attributable to the income potential from the expansion of our footprint in the gaming space by accelerating our entry into and growth in the electronic bingo market and business line, and assembled workforce, among other strategic benefits.
The estimates and assumptions used include the projected timing and amount of future cash flows and discount rates reflecting risk inherent in the future cash flows. The estimated fair values of assets acquired and liabilities assumed and resulting goodwill are subject to adjustment as the Company finalizes its purchase price accounting. The significant items for which a final fair value has not been determined include, but are not limited to; the valuation and estimated useful lives of intangible assets, inventory and deferred income taxes. We do not expect our fair value determinations to materially change; however, there may be differences between the amounts recorded at the Video King Closing Date and the final fair value analysis, which we expect to complete no later than the second quarter of 2024.
The information below reflects the preliminary amounts of identifiable assets acquired and liabilities assumed as of the closing date of the transaction (in thousands):
Amount
Current assets$7,715 
Property and equipment
4,485 
Other intangible assets
25,770 
Goodwill24,055 
Other assets763 
Total Assets62,788 
Accounts payable and accrued expenses1,193 
Other accrued expenses and liabilities328 
Total liabilities1,521 
Net assets acquired$61,267 
Current assets acquired included approximately $1.9 million in cash. Trade receivables acquired of approximately $2.0 million were short-term in nature and considered to be collectible, and therefore, the carrying amounts of these assets represented their fair values. Inventory acquired of approximately $3.4 million consisted of raw materials and finished goods and was recorded at fair value based on the estimated net realizable value of these assets. Property, equipment and leased assets acquired were not material, and the carrying amounts of these assets approximated their fair values.
The following table summarizes preliminary values of acquired intangible assets (dollars in thousands):
Useful Life (Years)Estimated Fair Value
Other Intangible Assets
Trade name
10
$950 
Developed technology
7
7,300 
Customer relationships
14
17,520 
Total other intangible assets$25,770 
The fair value of intangible assets was determined by applying the income approach. Other intangible assets acquired of approximately $25.8 million were comprised of customer relationships, developed technology and trade name. The fair value of customer relationships of approximately $17.5 million was determined by applying the income approach utilizing the excess earnings methodology based on Level 3 inputs in the hierarchy with a discount rate of 14% and estimated attrition rates. The fair value of developed technology of approximately $7.3 million was determined by applying the income approach utilizing the relief from royalty methodology based on Level 3 inputs with a royalty rate of 10% and a discount rate of 14%. The fair value of trade name of approximately $1.0 million was determined by applying the income approach utilizing the relief from royalty methodology based on Level 3 inputs with a royalty rate of 1% and a discount rate of 15%.
The financial results included in our Statements of Operations since the acquisition date and through June 30, 2023 reflected revenues of approximately $4.1 million and net income of approximately $0.6 million. We incurred acquisition-related costs of approximately $0.4 million for the six months ended June 30, 2023.
Pro-forma financial information (unaudited)

The unaudited pro forma financial data includes the historical operating results of the Company and the four acquired businesses prior to the acquisitions as if the transactions occurred on January 1, 2022. The unaudited pro forma results include increases to depreciation and amortization expense based on the purchased intangible assets and costs directly attributable to the acquisitions. The unaudited pro forma results do not purport to be indicative of results of operations as of the date hereof, for any period ended on the date hereof, or for any other future date or period; nor do they give effect to synergies, cost savings, fair market value adjustments and other changes expected as a result of the acquisitions.
The unaudited pro forma financial data on a consolidated basis as if the eCash, Intuicode, Venuetize and Video King acquisitions occurred on January 1, 2022 would reflect the following (dollars in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Unaudited pro forma consolidated financial data  
Revenues$211,023 $206,078 $418,416 $398,766 
Net income$26,794 $28,381 $54,715 $57,722 
v3.23.2
FUNDING AGREEMENTS
 6 Months Ended
Jun. 30, 2023
A T M Funding Agreement Disclosure [Abstract]  
FUNDING AGREEMENTS FUNDING AGREEMENTS
We have commercial arrangements with third-party vendors to provide cash for certain of our fund dispensing devices. For the use of these funds, we pay a usage fee on either the average daily balance of funds utilized multiplied by a contractually defined usage rate or the amounts supplied multiplied by a contractually defined usage rate. These fund usage fees, reflected as interest expense within the Statements of Operations, were approximately $5.9 million and $10.2 million for the three and six months ended June 30, 2023, respectively, and $1.7 million and $2.7 million for the three and six months ended June 30, 2022, respectively. We are exposed to interest rate risk to the extent that the applicable rates increase.
Under these agreements, the currency supplied by third party vendors remain their sole property until the funds are dispensed. As these funds are not our assets, supplied cash is not reflected in our Balance Sheets. The outstanding balance of funds provided from the third parties were approximately $370.8 million and $444.6 million as of June 30, 2023 and December 31, 2022, respectively.
Our primary commercial arrangement, the Contract Cash Solutions Agreement, as amended, is with Wells Fargo, N.A. (“Wells Fargo”). Wells Fargo provides us with cash up to $300 million with the ability to increase the amount permitted by the vault
cash provider. The term of the agreement expires on June 30, 2024 and will automatically renew for additional one-year periods unless either party provides a ninety-day written notice of its intent not to renew.
We are responsible for losses of cash in the fund dispensing devices under this agreement, and we self-insure for this type of risk. There were no material losses for the three and six months ended June 30, 2023 and 2022.
v3.23.2
TRADE AND OTHER RECEIVABLES
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
TRADE AND OTHER RECEIVABLES TRADE AND OTHER RECEIVABLES
Trade and other receivables represent short-term credit granted to customers and long-term loans receivable in connection with our Games and FinTech equipment and software, and compliance products. Trade and loans receivable generally do not require collateral.
The balance of trade and loans receivable consists of outstanding balances owed to us by gaming operators. Other receivables include income tax receivables and other miscellaneous receivables.
The balance of trade and other receivables consisted of the following (in thousands):
 At June 30,At December 31,
20232022
Trade and other receivables, net  
Games trade and loans receivable$73,858 $78,200 
FinTech trade and loans receivable
47,590 39,925 
Contract assets(1)
21,046 22,417 
Other receivables3,178 6,110 
Total trade and other receivables, net145,672 146,652 
Non-current portion of receivables  
Games trade and loans receivable562 1,382 
FinTech trade and loans receivable
19,249 16,519 
Contract assets(1)
8,469 9,856 
Total non-current portion of receivables28,280 27,757 
Total trade and other receivables, current portion$117,392 $118,895 
(1) Refer to “Note 3 — Revenues” for a discussion on the contract assets.
Allowance for Credit Losses
The activity in our allowance for credit losses for the six months ended June 30, 2023 and 2022 is as follows (in thousands):
Six Months Ended June 30,
20232022
Beginning allowance for credit losses$(4,855)$(5,161)
Provision(5,591)(4,275)
Charge-offs, net of recoveries5,389 4,152 
Ending allowance for credit losses$(5,057)$(5,284)
v3.23.2
INVENTORY
 6 Months Ended
Jun. 30, 2023
Inventory Disclosure [Abstract]  
INVENTORY INVENTORY
Our inventory primarily consists of component parts as well as work-in-progress and finished goods. The cost of inventory includes cost of materials, labor, overhead and freight, and is accounted for using the first in, first out method. The inventory is stated at the lower of cost or net realizable value.
Inventory consisted of the following (in thousands):
 At June 30,At December 31,
 20232022
Inventory  
Component parts$59,624 $48,688 
Work-in-progress3,374 323 
Finished goods11,405 9,339 
Total inventory$74,403 $58,350 
v3.23.2
PROPERTY AND EQUIPMENT
 6 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
Property and equipment consist of the following (in thousands):
  At June 30, 2023At December 31, 2022
Useful Life
(Years)		CostAccumulated
Depreciation		Net Book
Value		CostAccumulated
Depreciation		Net Book
Value
Property and equipment       
Rental pool - deployed
2-5
$294,680 $206,254 $88,426 $279,524 $188,369 $91,155 
Rental pool - undeployed
2-5
35,195 28,336 6,859 30,378 23,930 6,448 
FinTech equipment
1-5
36,834 25,812 11,022 36,442 24,167 12,275 
Leasehold and building improvementsLease Term17,073 11,351 5,722 13,666 10,689 2,977 
Machinery, office, and other equipment
1-5
59,581 38,135 21,446 55,246 34,456 20,790 
Total $443,363 $309,888 $133,475 $415,256 $281,611 $133,645 
Depreciation expense related to property and equipment totaled approximately $19.5 million and $38.5 million for the three and six months ended June 30, 2023, respectively and $15.7 million and $30.9 million for the three and six months ended June 30, 2022, respectively.
v3.23.2
GOODWILL AND OTHER INTANGIBLE ASSETS
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. The balance of goodwill was approximately $740.3 million and $715.9 million at June 30, 2023 and December 31, 2022, respectively. We have the following reporting units: (i) Games; (ii) Financial Access Services; (iii) Kiosk Sales and Services; (iv) Central Credit Services; (v) Compliance Sales and Services; (vi) Loyalty Sales and Services; and (vii) Mobile Technologies.
Other Intangible Assets
Other intangible assets consist of the following (in thousands):
  At June 30, 2023At December 31, 2022
Useful Life
(Years)		CostAccumulated
Amortization		Net Book
Value		CostAccumulated
Amortization		Net Book
Value
Other intangible assets       
Contract rights under placement fee agreements
2-7
$57,821 $16,922 $40,899 $57,821 $12,252 $45,569 
Customer relationships
3-14
349,345 244,195 105,150 331,999 233,150 98,849 
Developed technology and software
1-7
429,827 324,021 105,806 401,087 309,285 91,802 
Patents, trademarks, and other
2-18
24,767 21,214 3,553 22,334 20,279 2,055 
Total$861,760 $606,352 $255,408 $813,241 $574,966 $238,275 
Amortization expense related to other intangible assets was approximately $14.2 million and $28.5 million for the three and six months ended June 30, 2023, respectively and $14.6 million and $28.3 million for the three and six months ended June 30, 2022, respectively.
v3.23.2
LONG-TERM DEBT
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
LONG-TERM DEBT LONG-TERM DEBT
The following table summarizes our indebtedness (in thousands):
 MaturityInterestAt June 30,At December 31,
 DateRate20232022
Long-term debt  
$600 million Term Loan
2028
SOFR+2.50%
$586,500 $592,500 
$125 million Revolver
2026
SOFR+2.50%
— — 
Senior Secured Credit Facilities586,500 592,500 
$400 million Unsecured Notes
20295.00%400,000 400,000 
Total debt986,500 992,500 
Debt issuance costs and discount(13,270)(14,505)
Total debt after debt issuance costs and discount
973,230 977,995 
Current portion of long-term debt(3,000)(6,000)
Total long-term debt, net of current portion$970,230 $971,995 
Credit Facilities
Our senior secured credit facilities consist of: (i) a seven-year $600 million senior secured term loan due 2028 issued at 99.75% of par (the “Term Loan”); and (ii) a $125 million senior secured revolving credit facility due 2026, which was undrawn at closing (the “Revolver” and together with the Term Loan, the “Credit Facilities”). The Company, as borrower, entered into the credit agreement dated as of August 3, 2021 (the “Closing Date”), among the Company, the lenders party thereto and Jefferies Finance LLC, as administrative agent, collateral agent, swing line lender and a letter of credit issuer (the “Original Credit Agreement”).
On June 23, 2023, the Company entered into the first amendment (the “Amendment”) to the Original Credit Agreement (as amended, the “Amended Credit Agreement”), among Everi, as borrower, the lenders party thereto and Jefferies Finance LLC, as administrative agent, collateral agent, swing line lender and letter of credit issuer.
Under the Amended Credit Agreement, the Secured Overnight Financing Rate (“SOFR”) replaced the Eurodollar Rate for all purposes under the Original Credit Agreement and under any other Loan Document (as defined therein) on July 1, 2023, when the ICE Benchmark Administration ceased to provide all available tenors of the Eurodollar Rate. In connection with such implementation of SOFR, the Company and Jefferies Finance LLC agreed to make conforming changes to the relevant provisions of the Original Credit Agreement, as reflected in the Amended Credit Agreement.
We elected the optional expedient to account for the modification to our Credit Facilities in accordance with ASC 470 as if the modification was not substantial.
Legal fees were expensed as incurred in connection with the Amendment are reflected in operating expenses within the Statements of Operations for the three and six months ended June 30, 2023.
The interest rate per annum applicable to the Credit Facilities will be, at the Company’s option, either the SOFR with a 0.50% floor plus a margin of 2.50% or the base rate plus a margin of 1.50%. Our Revolver remained fully undrawn as of June 30, 2023.
The weighted average interest rate on the Term Loan was 7.51% and 7.27% for the three and six months ended June 30, 2023, respectively.
Senior Unsecured Notes
Our senior unsecured notes (the “2029 Unsecured Notes”) had an outstanding balance of $400.0 million as of June 30, 2023 that accrues interest at a rate of 5.00% per annum and is payable semi-annually in arrears on each January 15 and July 15.
Compliance with Debt Covenants
We were in compliance with the covenants and terms of the Credit Facilities and the 2029 Unsecured Notes as of June 30, 2023.
v3.23.2
COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
We are involved in various legal proceedings in the ordinary course of our business. While we believe resolution of the claims brought against us, both individually and in the aggregate, will not have a material adverse impact on our financial condition or results of operations, litigation of this nature is inherently unpredictable. Our views on these legal proceedings, including those described below, may change in the future. We intend to vigorously defend against these actions, and ultimately believe we should prevail.

Legal Contingencies
We evaluate matters and record an accrual for legal contingencies when it is both probable that a liability has been incurred and the amount or range of the loss may be reasonably estimated. We evaluate legal contingencies at least quarterly and, as appropriate, establish new accruals or adjust existing accruals to reflect: (i) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings, and other relevant events and developments; (ii) the advice and analyses of counsel; and (iii) the assumptions and judgment of management. Legal costs associated with such proceedings are expensed as incurred. Due to the inherent uncertainty of legal proceedings as a result of the procedural, factual, and legal issues involved, the outcomes of our legal contingencies could result in losses in excess of amounts we have accrued.
NRT matter:
NRT Technology Corp., et al. v. Everi Holdings Inc., et al. is a civil action filed on April 30, 2019 against Everi Holdings and Everi FinTech in the United States District Court for the District of Delaware by NRT Technology Corp. and NRT Technology, Inc., alleging monopolization of the market for unmanned, integrated kiosks in violation of federal antitrust laws, fraudulent procurement of patents on functionality related to such unmanned, integrated kiosks and sham litigation related to prior litigation brought by Everi FinTech (operating as Global Cash Access Inc.) against the plaintiff entities. The plaintiffs are seeking compensatory damages, treble damages, and injunctive and declaratory relief. Discovery is closed. The court removed the case from the September trial calendar and requested briefs from the parties on relevant legal issues. Briefing was completed in December 2022. The parties are awaiting further guidance from the court. Due to the current stage of the litigation, we are currently unable to estimate the probability of the outcome of this matter or reasonably estimate the range of possible damages, if any.
Zenergy Systems, LLC matter:
Zenergy Systems, LLC v. Everi Payments Inc. is a civil action filed on May 29, 2020, against Everi FinTech in the United States District Court for the District of Nevada, Clark County by Zenergy Systems, LLC, alleging breach of contract, breach of a non- disclosure agreement, conversion, breach of the covenant of good faith and fair dealing, and breach of a confidential relationship related to a contract with Everi FinTech that expired in November 2019. The plaintiff is seeking compensatory and punitive damages. Everi FinTech has counterclaimed against Zenergy alleging breach of contract, breach of implied covenant of good faith and fair dealing, and for declaratory relief. The parties participated in mediation on March 21, 2023. No
settlement was reached at mediation. The case is set for trial in August 2023. Due to the current stage of the litigation, we are currently unable to estimate the probability of the outcome of this matter or reasonably estimate the range of possible damages, if any.
Sightline Payments matter:
Sightline Payments LLC v. Everi Holdings Inc., et al. is a civil action filed on September 30, 2021, against Everi Holdings, Everi FinTech, Everi Games Holding Inc., and Everi Games (collectively referred to herein as the “Everi Parties”) in the United States District Court, Western District of Texas (Waco Division) by Sightline Payments LLC alleging patent infringement in violation of 35 U.S.C. § 271 et seq. The plaintiff’s complaint alleges that the Everi Parties’ CashClub Wallet product infringes on certain patents owned by the plaintiff. The plaintiff is seeking compensatory damages. The Everi Parties filed a Motion to Dismiss or Transfer for Lack of Venue. On June 1, 2022, the court granted the Everi Parties’ Motion to Dismiss ruling that the Western District of Texas was not the proper venue for an action against Everi Fintech, Everi Holdings, and Everi Games. On June 23, 2022, the plaintiff, Sightline Payments LLC, filed an appeal of the District Court’s Order. The appeal is underway. Due to the current stage of the litigation, we are currently unable to estimate the probability of the outcome of this matter or reasonably estimate the range of possible damages, if any.
Sightline USPTO matters:
In a case related to the Sightline Payments matter, in February and March 2022, Everi Payments Inc. filed five Petitions for Inter Partes Review (“IPR”) with the Patent Trial and Appeal Board (the “PTAB”) of the United States Patent and Trademark Office seeking invalidation of certain claims of U.S. Patent Nos. 8,708,809, 8,998,708, 9,196,123, 9,466,176, and 9,785,926 owned by Sightline Partners LLC. In August and September 2022, decisions by the PTAB were issued granting the IPRs. Briefing and discovery is closed. Oral argument was held on June 14, 2023. Due to the current stage of these matters, we are currently unable to estimate the probability of the outcome or reasonably estimate the range of possible damages, if any.
Mary Parrish matter:
Mary Parrish v. Everi Holdings Inc., et al. is a civil action filed on December 28, 2021, against Everi Holdings and Everi FinTech in the District Court of Nevada, Clark County by Mary Parrish alleging violation of the Fair and Accurate Credit Transactions Act (FACTA) amendment to the Fair Credit Reporting Act (FCRA). Plaintiff’s complaint alleges she received a printed receipt for cash access services performed at an Everi Payments’ ATM which displayed more than four (4) digits of the account number. Plaintiff seeks statutory damages, punitive damages, injunctive relief, attorneys’ fees, and other relief. Everi filed a Petition for Removal to the United States District Court, District of Nevada. Thereafter, Everi filed a Motion to Dismiss. On May 4, 2023 the United States District Court entered an order remanding the case back to the District Court of Nevada, Clark County and denying the Motion to Dismiss. The matter is now pending in the District Court of Nevada, Clark County. Due to the early stages of the litigation, we are currently unable to estimate the probability of the outcome of this matter or reasonably estimate the range of possible damages, if any.
In addition, we have commitments with respect to certain lease obligations discussed in “Note 4 — Leases” and installment payments under our asset purchase agreements discussed in “Note 5 — Business Combinations.”
v3.23.2
STOCKHOLDERS' EQUITY
 6 Months Ended
Jun. 30, 2023
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITY
On May 3, 2023, our Board of Directors authorized and approved a new share repurchase program in an amount not to exceed $180 million, pursuant to which we may purchase outstanding Company common stock in open market or privately negotiated transactions over a period of eighteen (18) months through November 3, 2024, in accordance with Company and regulatory policies and trading plans established in accordance with Rules 10b5-1 and 10b-18 of the Securities Exchange Act of 1934. The actual number of shares to be purchased will depend upon market conditions and is subject to available liquidity, general market and economic conditions, alternative uses for the capital and other factors. All shares purchased will be held in the Company’s treasury for possible future use. As of June 30, 2023, Everi had approximately 87.7 million shares issued and outstanding, net of 34.6 million shares held in the Company’s treasury. There is no minimum number of shares that the Company is required to repurchase, and the program may be suspended or discontinued at any time without prior notice. This new repurchase program supersedes and replaces, in its entirety, the previous share repurchase program.
There were 2.7 million shares repurchased at an average price of $14.80 per share for an aggregate amount of $40.0 million during the three and six months ended June 30, 2023 and 2.0 million shares repurchased at an average price of $16.68 per share for an aggregate amount of $33.3 million during the three and six months ended June 30, 2022. Under the existing $180.0 million share repurchase program, the remaining availability was $140.0 million as of June 30, 2023.
v3.23.2
WEIGHTED AVERAGE SHARES OF COMMON STOCK
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
WEIGHTED AVERAGE SHARES OF COMMON STOCK WEIGHTED AVERAGE SHARES OF COMMON STOCK
The weighted average number of common stock outstanding used in the computation of basic and diluted earnings per share is as follows (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Weighted average shares  
Weighted average number of common shares outstanding - basic88,213 91,710 88,866 91,560 
Potential dilution from equity awards(1)
5,259 6,996 5,842 7,689 
Weighted average number of common shares outstanding - diluted(1)
93,472 98,706 94,708 99,249 
(1) There were 0.3 million and 0.2 million shares that were anti-dilutive under the treasury stock method for the three and six months ended June 30, 2023, respectively and 0.5 million and an immaterial number of shares that were anti-dilutive under the treasury stock method for the three and six months ended June 30, 2022, respectively.
v3.23.2
SHARE-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION
Equity Incentive Awards
Generally, we grant the following types of awards: (i) restricted stock units with either time- or performance-based criteria; and (ii) time-based options. We estimate forfeiture amounts based on historical patterns.
A summary of award activity is as follows (in thousands):
Stock Options Restricted Stock Units
Outstanding, December 31, 20226,793 2,709 
Granted103 1,533 
Exercised options or vested shares(1,197)(1,709)
Canceled or forfeited(7)(27)
Outstanding, June 30, 20235,692 2,506 
There were approximately 2.1 million awards of our common stock available for future equity grants under our existing equity incentive plan as of June 30, 2023
v3.23.2
INCOME TAXES
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXESThe income tax provision for the three and six months ended June 30, 2023, reflected an effective income tax rate of 17.3% and 17.5%, respectively, which was less than the statutory federal rate of 21.0%, primarily due to a research credit and the benefit from equity award activities, partially offset by state taxes and compensation deduction limitations. The income tax provision for the three and six months ended June 30, 2022, reflected an effective income tax rate of 23.0% and 23.3%, respectively, which was greater than the statutory federal rate of 21.0%, primarily due to state taxes, compensation deduction limitations and an accrual for foreign withholding tax, partially offset by both a research credit and the benefit from equity award activities.
v3.23.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-making group (the “CODM”). Our CODM generally consists of the Chief Executive Officer and the Chief Financial Officer. Our CODM determined that our operating segments for conducting business are: (i) Games and (ii) FinTech. Our CODM allocates resources and measures profitability based on our operating segments, which are managed and reviewed separately, as each represents products and services that can be sold separately to our customers. Our segments are monitored by management for performance against our internal forecasts. We have reported our financial performance based on our segments in both the current and prior periods. Refer to “Note 1 — Business” for additional information regarding our operating segments.
Corporate overhead expenses have been allocated to the segments either through specific identification or based on a reasonable methodology. In addition, we record depreciation and amortization expenses to the business segments.
Our business is predominantly domestic with no specific regional concentrations that were material to our results of operations or financial condition, and we had no significant assets in foreign locations.
The following tables present segment information (in thousands)*:
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Games  
Revenues  
Gaming operations$77,781 $74,079 $153,090 $144,417 
Gaming equipment and systems35,351 38,268 67,416 66,266 
Total revenues113,132 112,347 220,506 210,683 
Costs and expenses  
Cost of revenues(1)
  
Gaming operations8,388 6,122 15,194 12,117 
Gaming equipment and systems20,141 23,394 40,390 40,176 
Total cost of revenues28,529 29,516 55,584 52,293 
Operating expenses20,896 20,680 41,768 38,026 
Research and development11,172 9,467 21,825 17,097 
Depreciation17,265 13,334 33,504 26,315 
Amortization10,875 10,467 21,151 20,272 
Total costs and expenses88,737 83,464 173,832 154,003 
Operating income$24,395 $28,883 $46,674 $56,680 
(1) Exclusive of depreciation and amortization.
* Rounding may cause variances.
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
FinTech  
Revenues  
Financial access services$55,660 $50,876 $111,874 $100,755 
Software and other23,995 18,997 48,210 36,864 
Hardware15,930 15,002 28,599 24,536 
Total revenues95,585 84,875 188,683 162,155 
Costs and expenses  
Cost of revenues(1)
  
Financial access services2,697 2,470 5,596 4,645 
Software and other1,923 886 3,346 1,821 
Hardware10,574 10,362 19,022 16,303 
Total cost of revenues15,194 13,718 27,964 22,769 
Operating expenses40,494 34,371 78,814 66,850 
Research and development5,465 4,597 10,908 9,486 
Depreciation2,257 2,344 4,967 4,583 
Amortization3,298 4,179 7,386 8,007 
Total costs and expenses66,708 59,209 130,039 111,695 
Operating income$28,877 $25,666 $58,644 $50,460 
(1)  Exclusive of depreciation and amortization.
* Rounding may cause variances.
 At June 30,At December 31,
 20232022
Total assets  
Games$930,822 $911,907 
FinTech781,275 1,006,336 
Total assets$1,712,097 $1,918,243 
Major Customers. No single customer accounted for more than 10% of our revenues for the three and six months ended June 30, 2023 and 2022. Our five largest customers accounted for approximately 12% of our revenues for the three and six months ended June 30, 2023, respectively, and 15% and 14% for the three and six months ended June 30, 2022, respectively.
v3.23.2
SUBSEQUENT EVENTS
 6 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTSAs of the filing date, we had not identified, and were not aware of, any subsequent event for the period.
v3.23.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2023
Jun. 30, 2022
Pay vs Performance Disclosure            
Net income (loss) $ 27,396 $ 28,066 $ 32,521 $ 31,522 $ 55,462 $ 64,043
v3.23.2
Insider Trading Arrangements
 3 Months Ended 6 Months Ended
Jun. 30, 2023
shares
Jun. 30, 2023
shares
Trading Arrangements, by Individual    
Rule 10b5-1 Arrangement Adopted false  
Non-Rule 10b5-1 Arrangement Adopted false  
David J. Lucchese [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   David J. Lucchese, Executive Vice President, Sales and Marketing, on May 31, 2023 terminated a Rule 10b5-1 trading arrangement intended to satisfy Rule 10b5-1(c). The arrangement was originally entered into on March 15, 2023 to purchase 100,000 shares of Company common stock between June 15, 2023 and May 2, 2024, subject to certain limit orders, all of which shares were to be acquired upon the exercise of employee stock option awards that were set to expire on May 2, 2024. There were no other Rule 10b5‑1 trading arrangements (as defined in Item 408(a) of Regulation S-K) or non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K) adopted or terminated by any director or officer (as defined in Rule 16a‑1(f) under the Exchange Act) of the Company during the three months ended June 30, 2023.
Name David J. Lucchese  
Title Executive Vice President, Sales and Marketing  
Rule 10b5-1 Arrangement Terminated true  
Non-Rule 10b5-1 Arrangement Terminated false  
Termination Date May 31, 2023  
Arrangement Duration 77 days  
Aggregate Available 100,000 100,000
v3.23.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
Our Financial Statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Some of the information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. The results for the three and six months ended June 30, 2023 are not necessarily indicative of results to be expected for the full fiscal year. The Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the most recently filed Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report”).
Restricted Cash Restricted CashOur restricted cash primarily consists of: (i) funds held in connection with certain customer agreements; (ii) funds held in connection with a sponsorship agreement; and (iii) wide-area progressive (“WAP”)-related restricted funds.
Fair Values of Financial Instruments
Fair Values of Financial Instruments
The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument.
The carrying amount of cash and cash equivalents, restricted cash, settlement receivables, short-term trade and other receivables, settlement liabilities, accounts payable, and accrued expenses approximate fair value due to the short-term maturities of these instruments. The fair value of the long-term trade and loans receivable is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. The fair value of long-term accounts payable is estimated by discounting the total obligation.
Reclassification of Balances
Reclassification of Balances
Certain amounts in the accompanying Financial Statements have been reclassified to be consistent with the current year presentation. These reclassifications had no effect on net income for the prior periods.
Recent Accounting Guidance
Recent Accounting Guidance
As of June 30, 2023, no recent accounting guidance is expected to have a significant impact on our Financial Statements.
Revenue
Overview
We evaluate the recognition of revenue based on the criteria set forth in Accounting Standards Codification (“ASC”) 606 — Revenue from Contracts with Customers and ASC 842 — Leases, as appropriate. We recognize revenue upon transferring control of goods or services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We enter into contracts with customers that include various performance obligations consisting of goods, services, or combinations of goods and services. Timing of the transfer of control varies based on the nature of the contract. We recognize revenue net of any sales and other taxes collected from customers, which are subsequently remitted to governmental authorities and are not included in revenues or operating expenses. We measure revenue based on the consideration specified in a contract with a customer and adjusted, as necessary.
Disaggregation of Revenues
We disaggregate revenues based on the nature and timing of the cash flows generated by such revenues as presented in “Note 17 — Segment Information.”
Contract Balances
Since our contracts may include multiple performance obligations, there is often a timing difference between cash collections and the satisfaction of such performance obligations and revenue recognition. Such arrangements are evaluated to determine whether contract assets and liabilities exist. We generally record contract assets when the timing of billing differs from when revenue is recognized due to contracts containing specific performance obligations that are required to be met prior to a customer being invoiced. We generally record contract liabilities when cash is collected in advance of us satisfying performance obligations, including those that are satisfied over a period of time. Balances of our contract assets and contract liabilities may fluctuate due to timing of cash collections.
v3.23.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Reconciliation of Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows for the six months ended June 30, 2023 (in thousands).
Classification on our Balance Sheets
At June 30, 2023
At December 31, 2022
Cash and cash equivalentsCash and cash equivalents$210,618 $293,394 
Restricted cash - currentPrepaid expenses and other current assets4,473 1,568 
Restricted cash - non-currentOther assets101 101 
Total$215,192 $295,063 
Reconciliation of Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows for the six months ended June 30, 2023 (in thousands).
Classification on our Balance Sheets
At June 30, 2023
At December 31, 2022
Cash and cash equivalentsCash and cash equivalents$210,618 $293,394 
Restricted cash - currentPrepaid expenses and other current assets4,473 1,568 
Restricted cash - non-currentOther assets101 101 
Total$215,192 $295,063 
Estimated Fair Value and Outstanding Balances of Borrowings The estimated fair value and outstanding balances of our borrowings are as follows (in thousands):
 Level of HierarchyFair ValueOutstanding Balance
June 30, 2023   
$600 million Term Loan
2$586,562 $586,500 
$400 million Unsecured Notes
2$353,000 $400,000 
December 31, 2022   
$600 million Term Loan
2$588,560 $592,500 
$400 million Unsecured Notes
2$346,000 $400,000 
v3.23.2
REVENUES (Tables)
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Contract Asset and Liability
The following table summarizes our contract assets and contract liabilities arising from contracts with customers (in thousands):
20232022
Contract assets(1)
Balance, beginning of period$22,417 $15,221 
Balance, end of period21,046 16,325 
         (Decrease) increase$(1,371)$1,104 
Contract liabilities(2)
Balance, beginning of period$53,419 $36,615 
Balance, end of period56,106 48,730 
         Increase$2,687 $12,115 
(1) Contract assets are included within trade and other receivables, net and other receivables in our Balance Sheets.
(2) Contract liabilities are included within accounts payable and accrued expenses and other accrued expenses and liabilities in our Balance Sheets.
v3.23.2
LEASES (Tables)
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Balance Sheet Information
Balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance Sheets
At June 30, 2023
At December 31, 2022
Assets
Operating lease right-of-use (“ROU”) assetsOther assets, non-current$15,271 $17,169 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$6,705 $6,507 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$11,967 $14,738 
Cash Flow Information
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Cash paid for:
Long-term operating leases$1,862 $1,642 $3,574 $3,310 
Short-term operating leases$473 $398 $845 $807 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
$766 $504 $852 $6,451 
Lease Costs
Other information related to lease terms and discount rates is as follows:
At June 30, 2023At December 31, 2022
Weighted Average Remaining Lease Term (in years):
Operating leases2.943.37
Weighted Average Discount Rate:
Operating leases4.79 %4.72 %
Components of lease expense are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Operating Lease Cost:
Operating lease cost
$1,559 $1,467 $3,036 $2,829 
Variable lease cost $306 $364 $625 $643 
Payments Due
Maturities of lease liabilities are summarized as follows as of June 30, 2023 (in thousands):

Year Ending December 31, Amount
2023 (excluding the six months ended June 30, 2023)
$3,805 
2024
7,066 
2025
5,987 
2026
2,200 
2027
608 
Thereafter359 
Total future minimum lease payments 20,025 
Less: Amount representing interest 1,353 
Present value of future minimum lease payments18,672 
Less: Current operating lease obligations6,705 
Long-term lease obligations$11,967 
v3.23.2
Business Combinations and Asset Acquisitions (Tables)
 6 Months Ended
Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Total Purchase Consideration
The total preliminary purchase consideration for Video King was as follows (in thousands, at fair value):

Amount
Purchase consideration
Cash consideration paid at closing(1)
$61,013 
Cash consideration to be paid post-closing254 
Total purchase consideration$61,267 
(1) Current assets acquired included approximately $1.9 million in cash.
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The information below reflects the preliminary amounts of identifiable assets acquired and liabilities assumed as of the closing date of the transaction (in thousands):
Amount
Current assets$7,715 
Property and equipment
4,485 
Other intangible assets
25,770 
Goodwill24,055 
Other assets763 
Total Assets62,788 
Accounts payable and accrued expenses1,193 
Other accrued expenses and liabilities328 
Total liabilities1,521 
Net assets acquired$61,267 
Finite-Lived Intangible Assets Acquired
The following table summarizes preliminary values of acquired intangible assets (dollars in thousands):
Useful Life (Years)Estimated Fair Value
Other Intangible Assets
Trade name
10
$950 
Developed technology
7
7,300 
Customer relationships
14
17,520 
Total other intangible assets$25,770 
Business Acquisition, Pro Forma Information
The unaudited pro forma financial data on a consolidated basis as if the eCash, Intuicode, Venuetize and Video King acquisitions occurred on January 1, 2022 would reflect the following (dollars in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Unaudited pro forma consolidated financial data  
Revenues$211,023 $206,078 $418,416 $398,766 
Net income$26,794 $28,381 $54,715 $57,722 
v3.23.2
TRADE AND OTHER RECEIVABLES (Tables)
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Schedule of Components of Trade and Other Receivables
The balance of trade and other receivables consisted of the following (in thousands):
 At June 30,At December 31,
20232022
Trade and other receivables, net  
Games trade and loans receivable$73,858 $78,200 
FinTech trade and loans receivable
47,590 39,925 
Contract assets(1)
21,046 22,417 
Other receivables3,178 6,110 
Total trade and other receivables, net145,672 146,652 
Non-current portion of receivables  
Games trade and loans receivable562 1,382 
FinTech trade and loans receivable
19,249 16,519 
Contract assets(1)
8,469 9,856 
Total non-current portion of receivables28,280 27,757 
Total trade and other receivables, current portion$117,392 $118,895 
(1) Refer to “Note 3 — Revenues” for a discussion on the contract assets.
Activity in Allowance for Credit Losses
The activity in our allowance for credit losses for the six months ended June 30, 2023 and 2022 is as follows (in thousands):
Six Months Ended June 30,
20232022
Beginning allowance for credit losses$(4,855)$(5,161)
Provision(5,591)(4,275)
Charge-offs, net of recoveries5,389 4,152 
Ending allowance for credit losses$(5,057)$(5,284)
v3.23.2
INVENTORY (Tables)
 6 Months Ended
Jun. 30, 2023
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
Inventory consisted of the following (in thousands):
 At June 30,At December 31,
 20232022
Inventory  
Component parts$59,624 $48,688 
Work-in-progress3,374 323 
Finished goods11,405 9,339 
Total inventory$74,403 $58,350 
v3.23.2
PROPERTY AND EQUIPMENT (Tables)
 6 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Components of Property, Equipment and Leased Assets
Property and equipment consist of the following (in thousands):
  At June 30, 2023At December 31, 2022
Useful Life
(Years)		CostAccumulated
Depreciation		Net Book
Value		CostAccumulated
Depreciation		Net Book
Value
Property and equipment       
Rental pool - deployed
2-5
$294,680 $206,254 $88,426 $279,524 $188,369 $91,155 
Rental pool - undeployed
2-5
35,195 28,336 6,859 30,378 23,930 6,448 
FinTech equipment
1-5
36,834 25,812 11,022 36,442 24,167 12,275 
Leasehold and building improvementsLease Term17,073 11,351 5,722 13,666 10,689 2,977 
Machinery, office, and other equipment
1-5
59,581 38,135 21,446 55,246 34,456 20,790 
Total $443,363 $309,888 $133,475 $415,256 $281,611 $133,645 
v3.23.2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Other Intangible Assets
Other intangible assets consist of the following (in thousands):
  At June 30, 2023At December 31, 2022
Useful Life
(Years)		CostAccumulated
Amortization		Net Book
Value		CostAccumulated
Amortization		Net Book
Value
Other intangible assets       
Contract rights under placement fee agreements
2-7
$57,821 $16,922 $40,899 $57,821 $12,252 $45,569 
Customer relationships
3-14
349,345 244,195 105,150 331,999 233,150 98,849 
Developed technology and software
1-7
429,827 324,021 105,806 401,087 309,285 91,802 
Patents, trademarks, and other
2-18
24,767 21,214 3,553 22,334 20,279 2,055 
Total$861,760 $606,352 $255,408 $813,241 $574,966 $238,275 
v3.23.2
LONG-TERM DEBT (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Outstanding Indebtedness
The following table summarizes our indebtedness (in thousands):
 MaturityInterestAt June 30,At December 31,
 DateRate20232022
Long-term debt  
$600 million Term Loan
2028
SOFR+2.50%
$586,500 $592,500 
$125 million Revolver
2026
SOFR+2.50%
— — 
Senior Secured Credit Facilities586,500 592,500 
$400 million Unsecured Notes
20295.00%400,000 400,000 
Total debt986,500 992,500 
Debt issuance costs and discount(13,270)(14,505)
Total debt after debt issuance costs and discount
973,230 977,995 
Current portion of long-term debt(3,000)(6,000)
Total long-term debt, net of current portion$970,230 $971,995 
v3.23.2
WEIGHTED AVERAGE SHARES OF COMMON STOCK (Tables)
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Schedule of Weighted Average Number of Shares
The weighted average number of common stock outstanding used in the computation of basic and diluted earnings per share is as follows (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Weighted average shares  
Weighted average number of common shares outstanding - basic88,213 91,710 88,866 91,560 
Potential dilution from equity awards(1)
5,259 6,996 5,842 7,689 
Weighted average number of common shares outstanding - diluted(1)
93,472 98,706 94,708 99,249 
(1) There were 0.3 million and 0.2 million shares that were anti-dilutive under the treasury stock method for the three and six months ended June 30, 2023, respectively and 0.5 million and an immaterial number of shares that were anti-dilutive under the treasury stock method for the three and six months ended June 30, 2022, respectively.
v3.23.2
SHARE-BASED COMPENSATION (Tables)
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of Award Activity
A summary of award activity is as follows (in thousands):
Stock Options Restricted Stock Units
Outstanding, December 31, 20226,793 2,709 
Granted103 1,533 
Exercised options or vested shares(1,197)(1,709)
Canceled or forfeited(7)(27)
Outstanding, June 30, 20235,692 2,506 
v3.23.2
SEGMENT INFORMATION (Tables)
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Schedule of Segment Information
The following tables present segment information (in thousands)*:
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Games  
Revenues  
Gaming operations$77,781 $74,079 $153,090 $144,417 
Gaming equipment and systems35,351 38,268 67,416 66,266 
Total revenues113,132 112,347 220,506 210,683 
Costs and expenses  
Cost of revenues(1)
  
Gaming operations8,388 6,122 15,194 12,117 
Gaming equipment and systems20,141 23,394 40,390 40,176 
Total cost of revenues28,529 29,516 55,584 52,293 
Operating expenses20,896 20,680 41,768 38,026 
Research and development11,172 9,467 21,825 17,097 
Depreciation17,265 13,334 33,504 26,315 
Amortization10,875 10,467 21,151 20,272 
Total costs and expenses88,737 83,464 173,832 154,003 
Operating income$24,395 $28,883 $46,674 $56,680 
(1) Exclusive of depreciation and amortization.
* Rounding may cause variances.
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
FinTech  
Revenues  
Financial access services$55,660 $50,876 $111,874 $100,755 
Software and other23,995 18,997 48,210 36,864 
Hardware15,930 15,002 28,599 24,536 
Total revenues95,585 84,875 188,683 162,155 
Costs and expenses  
Cost of revenues(1)
  
Financial access services2,697 2,470 5,596 4,645 
Software and other1,923 886 3,346 1,821 
Hardware10,574 10,362 19,022 16,303 
Total cost of revenues15,194 13,718 27,964 22,769 
Operating expenses40,494 34,371 78,814 66,850 
Research and development5,465 4,597 10,908 9,486 
Depreciation2,257 2,344 4,967 4,583 
Amortization3,298 4,179 7,386 8,007 
Total costs and expenses66,708 59,209 130,039 111,695 
Operating income$28,877 $25,666 $58,644 $50,460 
(1)  Exclusive of depreciation and amortization.
* Rounding may cause variances.
 At June 30,At December 31,
 20232022
Total assets  
Games$930,822 $911,907 
FinTech781,275 1,006,336 
Total assets$1,712,097 $1,918,243 
v3.23.2
BUSINESS - Narrative (Details)
 6 Months Ended
Jun. 30, 2023
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of business segments 2
v3.23.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Cash (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Jun. 30, 2022
Dec. 31, 2021
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 210,618 $ 293,394    
Restricted Cash, Current, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets Prepaid expenses and other current assets    
Restricted cash - current $ 4,473 $ 1,568    
Restricted Cash, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other assets Other assets    
Restricted cash - non-current $ 101 $ 101    
Total 215,192 295,063 $ 239,576 $ 303,726
Cash and Cash Equivalents        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 210,618 $ 293,394    
v3.23.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details)
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Accounting Policies [Abstract]    
Contractual terms of trade and loans receivable 12 months 12 months
v3.23.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Fair Value and Outstanding Balances of Borrowings (Details) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Aug. 03, 2021
Senior secured notes | New Revolver      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Principal amount of debt $ 600,000,000 $ 600,000,000 $ 600,000,000
Senior unsecured notes | 2021 Unsecured Notes      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Principal amount of debt 400,000,000 400,000,000  
Fair Value | Level 2 | New Term Loan      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Long-term debt 586,562,000 588,560,000  
Fair Value | Level 2 | Incremental Term Loan      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Long-term debt 353,000,000 346,000,000  
Outstanding Balance | Level 2 | New Term Loan      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Long-term debt 586,500,000 592,500,000  
Outstanding Balance | Level 2 | Incremental Term Loan      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Long-term debt $ 400,000,000 $ 400,000,000  
v3.23.2
REVENUES - Contract Asset and Liability (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Contract assets    
Balance, beginning of period $ 22,417 $ 15,221
Balance, end of period 21,046 16,325
(Decrease) increase (1,371) 1,104
Contract liabilities    
Balance, beginning of period 53,419 36,615
Balance, end of period 56,106 48,730
Increase $ 2,687 $ 12,115
v3.23.2
REVENUES (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disaggregation of Revenue [Line Items]        
Contract with customer liability     $ 31,400 $ 21,100
Total revenues $ 208,717 $ 197,222 409,189 372,838
Games        
Disaggregation of Revenue [Line Items]        
Total revenues 113,132 112,347 220,506 210,683
Gaming operations, leased equipment | Games        
Disaggregation of Revenue [Line Items]        
Total revenues $ 51,300 $ 49,500 $ 100,800 $ 96,600
v3.23.2
LEASES - Balance Sheet Information (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Leases [Abstract]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Other assets Other assets
Operating lease right-of-use (“ROU”) assets $ 15,271 $ 17,169
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accounts payable and accrued expenses Accounts payable and accrued expenses
Less: Current operating lease obligations $ 6,705 $ 6,507
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other accrued expenses and liabilities Other accrued expenses and liabilities
Non-current operating lease liabilities $ 11,967 $ 14,738
v3.23.2
LEASES - Cash Flow Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Cash paid for:        
Long-term operating leases $ 1,862 $ 1,642 $ 3,574 $ 3,310
Short-term operating leases 473 398 845 807
Right-of-use assets obtained in exchange for lease obligations:        
Operating leases $ 766 $ 504 $ 852 $ 6,451
v3.23.2
LEASES - Lease Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Leases [Abstract]          
Weighted average remaining lease term, operating leases 2 years 11 months 8 days   2 years 11 months 8 days   3 years 4 months 13 days
Weighted average discount rate, operating leases 4.79%   4.79%   4.72%
Operating lease cost $ 1,559 $ 1,467 $ 3,036 $ 2,829  
Variable lease cost $ 306 $ 364 $ 625 $ 643  
v3.23.2
LEASES - Payments Due (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Amount    
2023 (excluding the six months ended June 30, 2023) $ 3,805  
2024 7,066  
2025 5,987  
2026 2,200  
2027 608  
Thereafter 359  
Total future minimum lease payments 20,025  
Less: Amount representing interest 1,353  
Present value of future minimum lease payments 18,672  
Less: Current operating lease obligations 6,705 $ 6,507
Long-term lease obligations $ 11,967 $ 14,738
v3.23.2
LEASES - Narrative (Details)
$ in Millions
Jun. 30, 2023
USD ($)
Leases [Abstract]  
Lease not yet commenced, term of contract 10 years
Lease not yet commenced $ 27.3
v3.23.2
BUSINESS COMBINATIONS - Narrative (Details)
$ in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
May 01, 2023
USD ($)
Oct. 14, 2022
USD ($)
Apr. 30, 2022
USD ($)
Mar. 01, 2022
AUD ($)
Mar. 01, 2022
USD ($)
Jun. 30, 2023
USD ($)
Sep. 30, 2022
AUD ($)
Sep. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
business
Business Acquisition [Line Items]                  
Trade receivables           $ 2,000     $ 2,000
Inventory           3,400     $ 3,400
Number of acquired businesses | business                 4
ecash Holdings Pty Limited                  
Business Acquisition [Line Items]                  
Cash consideration paid at closing       $ 20.0 $ 15,000        
Payments for excess net working capital             $ 8.7 $ 6,000  
Business combination, consideration transfer           2,300      
ecash Holdings Pty Limited | Tranche One                  
Business Acquisition [Line Items]                  
Contingent consideration       $ 5.0 $ 3,400        
Contingent consideration, period since closing       1 year 1 year        
ecash Holdings Pty Limited | Tranche Two                  
Business Acquisition [Line Items]                  
Contingent consideration       $ 6.5          
Contingent consideration, period since closing       2 years 2 years        
Intuicode                  
Business Acquisition [Line Items]                  
Cash consideration paid at closing     $ 12,500            
Cash consideration to be paid post-closing     1,600            
Final payment and deferred taxes           $ 1,300      
Intuicode | Business Combination, Contingent Consideration, Period One                  
Business Acquisition [Line Items]                  
Business combination, contingent consideration, earn-out liability     $ 6,400            
Revenue target anniversary     1 year            
Intuicode | Business Combination, Contingent Consideration, Period Two                  
Business Acquisition [Line Items]                  
Business combination, contingent consideration, earn-out liability     $ 4,600            
Revenue target anniversary     2 years            
Venuetize, Inc.                  
Business Acquisition [Line Items]                  
Cash consideration paid at closing   $ 18,200              
Business combination, consideration transfer   21,000              
Business combination, contingent consideration, earn-out liability   $ 2,800              
Cash payments, noncurrent, payment period   2 years              
Venuetize, Inc. | Measurement Input, Discount Rate                  
Business Acquisition [Line Items]                  
Acquired business discount rate           0.07     0.07
Venuetize, Inc. | Business Combination, Contingent Consideration, Period One                  
Business Acquisition [Line Items]                  
Revenue target anniversary   12 months              
Venuetize, Inc. | Business Combination, Contingent Consideration, Period Two                  
Business Acquisition [Line Items]                  
Revenue target anniversary   24 months              
Venuetize, Inc. | Business Combination, Contingent Consideration, Period Three                  
Business Acquisition [Line Items]                  
Revenue target anniversary   30 months              
VKGS LLC                  
Business Acquisition [Line Items]                  
Cash consideration paid at closing $ 61,013                
Business combination, consideration transfer 61,267                
Cash consideration to be paid post-closing 254                
Cash           $ 1,900     $ 1,900
Other intangible assets 25,770                
Revenue since acquisition date                 4,100
Net loss since acquisition date                 600
Transaction costs                 $ 400
VKGS LLC | Customer relationships                  
Business Acquisition [Line Items]                  
Other intangible assets 17,520                
VKGS LLC | Developed technology                  
Business Acquisition [Line Items]                  
Other intangible assets 7,300                
VKGS LLC | Trade name                  
Business Acquisition [Line Items]                  
Other intangible assets $ 950                
VKGS LLC | Measurement Input, Discount Rate | Customer relationships                  
Business Acquisition [Line Items]                  
Finite-lived intangible assets acquired, measurement input 14.00%                
VKGS LLC | Measurement Input, Discount Rate | Developed technology                  
Business Acquisition [Line Items]                  
Finite-lived intangible assets acquired, measurement input 14.00%                
VKGS LLC | Measurement Input, Discount Rate | Trade name                  
Business Acquisition [Line Items]                  
Finite-lived intangible assets acquired, measurement input 15.00%                
VKGS LLC | Measurement Input, Royalty Rate | Developed technology                  
Business Acquisition [Line Items]                  
Finite-lived intangible assets acquired, measurement input 10.00%                
VKGS LLC | Measurement Input, Royalty Rate | Trade name                  
Business Acquisition [Line Items]                  
Finite-lived intangible assets acquired, measurement input 1.00%                
v3.23.2
BUSINESS COMBINATIONS - Schedule of Total Purchase Consideration (Details) - VKGS LLC - USD ($)
$ in Thousands
May 01, 2023
Jun. 30, 2023
Business Acquisition [Line Items]    
Cash consideration paid at closing $ 61,013  
Cash consideration to be paid post-closing 254  
Total purchase consideration $ 61,267  
Cash   $ 1,900
v3.23.2
BUSINESS COMBINATIONS - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
May 01, 2023
Dec. 31, 2022
Business Acquisition [Line Items]      
Goodwill $ 740,344   $ 715,870
VKGS LLC      
Business Acquisition [Line Items]      
Current assets   $ 7,715  
Property and equipment   4,485  
Other intangible assets   25,770  
Goodwill   24,055  
Other assets   763  
Total Assets   62,788  
Accounts payable and accrued expenses   1,193  
Other accrued expenses and liabilities   328  
Total liabilities   1,521  
Net assets acquired   $ 61,267  
v3.23.2
BUSINESS COMBINATIONS - Intangible Assets Acquired as Part of Business Combination (Details) - VKGS LLC
$ in Thousands
May 01, 2023
USD ($)
Business Acquisition [Line Items]  
Other intangible assets $ 25,770
Trade name  
Business Acquisition [Line Items]  
Useful Life (Years) 10 years
Other intangible assets $ 950
Developed technology  
Business Acquisition [Line Items]  
Useful Life (Years) 7 years
Other intangible assets $ 7,300
Customer relationships  
Business Acquisition [Line Items]  
Useful Life (Years) 14 years
Other intangible assets $ 17,520
v3.23.2
BUSINESS COMBINATIONS - Business Acquisition, Prom Forma Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]        
Revenues $ 211,023 $ 206,078 $ 418,416 $ 398,766
Net income $ 26,794 $ 28,381 $ 54,715 $ 57,722
v3.23.2
FUNDING AGREEMENTS (Details) - Indemnification Guarantee - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Contract Cash Solutions Agreement          
Funding Agreements          
Cash usage fees incurred $ 5,900,000 $ 1,700,000 $ 10,200,000 $ 2,700,000  
Outstanding balance 370,800,000   370,800,000   $ 444,600,000
Contract Cash Solutions Agreement, as amended          
Funding Agreements          
Maximum amount $ 300,000,000   $ 300,000,000    
Renewal period     1 year    
Guarantor obligations, non-renewal notice period     90 days    
v3.23.2
TRADE AND OTHER RECEIVABLES - Schedule of Components of Trade and Other Receivables (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Trade and other receivables, net    
Contract assets $ 21,046 $ 22,417
Other receivables 3,178 6,110
Total trade and other receivables, net 145,672 146,652
Non-current portion of receivables 28,280 27,757
Contract assets 8,469 9,856
Total trade and other receivables, current portion 117,392 118,895
Gaming operations    
Trade and other receivables, net    
Trade receivables, net 73,858 78,200
Non-current portion of receivables 562 1,382
FinTech    
Trade and other receivables, net    
Trade receivables, net 47,590 39,925
Non-current portion of receivables $ 19,249 $ 16,519
v3.23.2
TRADE AND OTHER RECEIVABLES - Activity in Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning allowance for credit losses $ (4,855) $ (5,161)
Provision (5,591) (4,275)
Charge-offs, net of recoveries 5,389 4,152
Ending allowance for credit losses $ (5,057) $ (5,284)
v3.23.2
INVENTORY (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Inventory    
Component parts $ 59,624 $ 48,688
Work-in-progress 3,374 323
Finished goods 11,405 9,339
Total inventory $ 74,403 $ 58,350
v3.23.2
PROPERTY AND EQUIPMENT - Schedule of Components of Property, Equipment and Leased Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Property, Plant and Equipment [Line Items]          
Cost $ 443,363   $ 443,363   $ 415,256
Accumulated Depreciation 309,888   309,888   281,611
Net Book Value 133,475   133,475   133,645
Depreciation 19,522 $ 15,678 38,471 $ 30,898  
Rental pool - deployed          
Property, Plant and Equipment [Line Items]          
Cost 294,680   294,680   279,524
Accumulated Depreciation 206,254   206,254   188,369
Net Book Value $ 88,426   $ 88,426   91,155
Rental pool - deployed | Minimum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years) 2 years   2 years    
Rental pool - deployed | Maximum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years) 5 years   5 years    
Rental pool - undeployed          
Property, Plant and Equipment [Line Items]          
Cost $ 35,195   $ 35,195   30,378
Accumulated Depreciation 28,336   28,336   23,930
Net Book Value $ 6,859   $ 6,859   6,448
Rental pool - undeployed | Minimum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years) 2 years   2 years    
Rental pool - undeployed | Maximum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years) 5 years   5 years    
Machinery, office, and other equipment          
Property, Plant and Equipment [Line Items]          
Cost $ 59,581   $ 59,581   55,246
Accumulated Depreciation 38,135   38,135   34,456
Net Book Value $ 21,446   $ 21,446   20,790
Machinery, office, and other equipment | Minimum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years) 1 year   1 year    
Machinery, office, and other equipment | Maximum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years) 5 years   5 years    
Leasehold and building improvements          
Property, Plant and Equipment [Line Items]          
Cost $ 17,073   $ 17,073   13,666
Accumulated Depreciation 11,351   11,351   10,689
Net Book Value 5,722   5,722   2,977
FinTech          
Property, Plant and Equipment [Line Items]          
Depreciation 2,257 $ 2,344 4,967 $ 4,583  
FinTech | Machinery, office, and other equipment          
Property, Plant and Equipment [Line Items]          
Cost 36,834   36,834   36,442
Accumulated Depreciation 25,812   25,812   24,167
Net Book Value $ 11,022   $ 11,022   $ 12,275
FinTech | Machinery, office, and other equipment | Minimum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years) 1 year   1 year    
FinTech | Machinery, office, and other equipment | Maximum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years) 5 years   5 years    
v3.23.2
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]          
Goodwill $ 740,344   $ 740,344   $ 715,870
Amortization of intangible assets $ 14,200 $ 14,600 $ 28,500 $ 28,300  
v3.23.2
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Cost $ 861,760 $ 813,241
Accumulated Amortization 606,352 574,966
Net Book Value 255,408 238,275
Contract rights under placement fee agreements    
Finite-Lived Intangible Assets [Line Items]    
Cost 57,821 57,821
Accumulated Amortization 16,922 12,252
Net Book Value $ 40,899 45,569
Contract rights under placement fee agreements | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 2 years  
Contract rights under placement fee agreements | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 7 years  
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 349,345 331,999
Accumulated Amortization 244,195 233,150
Net Book Value $ 105,150 98,849
Customer relationships | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 3 years  
Customer relationships | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 14 years  
Developed technology and software    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 429,827 401,087
Accumulated Amortization 324,021 309,285
Net Book Value $ 105,806 91,802
Developed technology and software | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 1 year  
Developed technology and software | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 7 years  
Patents, trademarks, and other    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 24,767 22,334
Accumulated Amortization 21,214 20,279
Net Book Value $ 3,553 $ 2,055
Patents, trademarks, and other | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 2 years  
Patents, trademarks, and other | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 18 years  
v3.23.2
LONG-TERM DEBT - Schedule of Outstanding Indebtedness (Details) - USD ($)
 6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Aug. 03, 2021
Debt Instrument [Line Items]      
Total debt $ 986,500,000 $ 992,500,000  
Debt issuance costs and discount (13,270,000) (14,505,000)  
Total debt after debt issuance costs and discount 973,230,000 977,995,000  
Current portion of long-term debt (3,000,000) (6,000,000)  
Total long-term debt, net of current portion 970,230,000 971,995,000  
Senior secured notes | New Revolver      
Debt Instrument [Line Items]      
Principal amount of debt $ 600,000,000 600,000,000 $ 600,000,000
Senior secured notes | New Revolver | Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Basis spread 2.50%    
Revolving credit facility | New Revolver      
Debt Instrument [Line Items]      
Total debt $ 0 0  
Principal amount of debt $ 125,000,000    
Revolving credit facility | New Revolver | Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Basis spread 2.50%    
Senior secured notes      
Debt Instrument [Line Items]      
Total debt $ 586,500,000 592,500,000  
Senior secured notes | Senior secured notes | New Revolver      
Debt Instrument [Line Items]      
Total debt 586,500,000 592,500,000  
Senior unsecured notes | 2021 Unsecured Notes      
Debt Instrument [Line Items]      
Total debt 400,000,000 400,000,000  
Principal amount of debt $ 400,000,000 $ 400,000,000  
Interest rate 5.00%    
v3.23.2
LONG-TERM DEBT - Narrative (Details)
 3 Months Ended 6 Months Ended
Aug. 03, 2021
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Senior unsecured notes | FinTech Segment        
Debt Instrument [Line Items]        
Principal amount of debt   $ 400,000,000 $ 400,000,000  
New Credit Facilities | Base Rate        
Debt Instrument [Line Items]        
Basis spread 1.50%      
New Credit Facilities | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Floor interest rate 0.50%      
Basis spread 2.50%      
2017 Unsecured Notes | Senior unsecured notes        
Debt Instrument [Line Items]        
Interest rate   5.00% 5.00%  
Senior secured notes | New Revolver        
Debt Instrument [Line Items]        
Debt term 7 years      
Principal amount of debt $ 600,000,000 $ 600,000,000 $ 600,000,000 $ 600,000,000
Percentage of par amount issued 0.9975      
Senior secured notes | New Revolver | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis spread     2.50%  
Revolving credit facility | New Revolver        
Debt Instrument [Line Items]        
Principal amount of debt   $ 125,000,000 $ 125,000,000  
Maximum borrowing capacity $ 125,000,000      
Revolving credit facility | New Revolver | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis spread     2.50%  
Incremental Term Loan | Incremental Term Loan Credit Agreement April 21, 2020        
Debt Instrument [Line Items]        
Weighted average interest rate during period   7.51% 7.27%  
v3.23.2
STOCKHOLDERS' EQUITY (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
May 03, 2023
Dec. 31, 2022
May 04, 2022
Stockholders' Equity Note [Abstract]              
Stock repurchase program, authorized amount         $ 180,000,000   $ 180,000,000
Stock repurchase program, period in force     18 months        
Common stock outstanding (in shares) 87,695,000   87,695,000     88,036,000  
Treasury stock (in shares) 34,600,000   34,600,000     31,353,000  
Treasury stock acquired (in shares) 2,700,000 2,000,000 2,700,000 2,000,000      
Treasury stock acquired (in usd per share) $ 14.80 $ 16.68 $ 14.80 $ 16.68      
Repurchase of shares $ 40,000,000 $ 33,300,000 $ 40,000,000 $ 33,300,000      
Stock repurchase program, remaining authorized repurchase amount $ 140,000,000   $ 140,000,000        
v3.23.2
WEIGHTED AVERAGE SHARES OF COMMON STOCK - Schedule of Weighted Average Number of Shares (Details) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Weighted average shares        
Weighted average number of common shares outstanding - basic (in shares) 88,213 91,710 88,866 91,560
Potential dilution from equity awards (in shares) 5,259 6,996 5,842 7,689
Weighted average number of common shares outstanding - diluted (in shares) 93,472 98,706 94,708 99,249
Anti-dilutive equity awards excluded from computation of earnings per share (in shares) 300 500 200 0
v3.23.2
SHARE-BASED COMPENSATION - Summary of Award Activity (Details) - shares
shares in Thousands
 6 Months Ended
Jun. 30, 2023
Stock Options  
Stock Options  
Outstanding (in shares) 6,793
Granted (in shares) 103
Exercised options (in shares) (1,197)
Canceled or forfeited (in shares) (7)
Outstanding (in shares) 5,692
Restricted Stock Units  
Restricted Stock Units  
Outstanding (in shares) 2,709
Granted (in shares) 1,533
Vested (in shares) (1,709)
Canceled or forfeited (in shares) (27)
Outstanding (in shares) 2,506
Common Stock  
Restricted Stock Units  
Number of shares available for grant (in shares) 2,100
v3.23.2
INCOME TAXES (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Tax Disclosure [Abstract]        
Effective income tax rate 17.30% 23.00% 17.50% 23.30%
Statutory federal rate     21.00% 21.00%
Unrecognized tax benefits $ 2.7   $ 2.7  
v3.23.2
SEGMENT INFORMATION - Revenues, Operating Income, and Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Revenues          
Total revenues $ 208,717 $ 197,222 $ 409,189 $ 372,838  
Costs and expenses          
Operating expenses 61,390 55,051 120,582 104,876  
Research and development 16,637 14,064 32,733 26,583  
Depreciation 19,522 15,678 38,471 30,898  
Amortization 14,173 14,646 28,537 28,279  
Total costs and expenses 155,445 142,673 303,871 265,698  
Operating income 53,272 54,549 105,318 107,140  
Total assets          
Total assets 1,712,097   1,712,097   $ 1,918,243
Games          
Revenues          
Total revenues 113,132 112,347 220,506 210,683  
Costs and expenses          
Total cost of revenues [1] 28,529 29,516 55,584 52,293  
Operating expenses 20,896 20,680 41,768 38,026  
Research and development 11,172 9,467 21,825 17,097  
Depreciation 17,265 13,334 33,504 26,315  
Amortization 10,875 10,467 21,151 20,272  
Total costs and expenses 88,737 83,464 173,832 154,003  
Operating income 24,395 28,883 46,674 56,680  
Total assets          
Total assets 930,822   930,822   911,907
Games | Gaming operations          
Revenues          
Total revenues 77,781 74,079 153,090 144,417  
Costs and expenses          
Total cost of revenues [1] 8,388 6,122 15,194 12,117  
Games | Gaming equipment and systems          
Revenues          
Total revenues 35,351 38,268 67,416 66,266  
Costs and expenses          
Total cost of revenues [1] 20,141 23,394 40,390 40,176  
FinTech          
Revenues          
Total revenues 95,585 84,875 188,683 162,155  
Costs and expenses          
Total cost of revenues [1] 15,194 13,718 27,964 22,769  
Operating expenses 40,494 34,371 78,814 66,850  
Research and development 5,465 4,597 10,908 9,486  
Depreciation 2,257 2,344 4,967 4,583  
Amortization 3,298 4,179 7,386 8,007  
Total costs and expenses 66,708 59,209 130,039 111,695  
Operating income 28,877 25,666 58,644 50,460  
Total assets          
Total assets 781,275   781,275   $ 1,006,336
FinTech | Financial access services          
Revenues          
Total revenues 55,660 50,876 111,874 100,755  
Costs and expenses          
Total cost of revenues [1] 2,697 2,470 5,596 4,645  
FinTech | Software and other          
Revenues          
Total revenues 23,995 18,997 48,210 36,864  
Costs and expenses          
Total cost of revenues [1] 1,923 886 3,346 1,821  
FinTech | Hardware          
Revenues          
Total revenues 15,930 15,002 28,599 24,536  
Costs and expenses          
Total cost of revenues [1] $ 10,574 $ 10,362 $ 19,022 $ 16,303  
[1] (1) Exclusive of depreciation and amortization.
v3.23.2
SEGMENT INFORMATION - Major Customers (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Five largest customers | Customer risk | Revenue from Contract with Customer        
Revenue, Major Customer [Line Items]        
Concentration risk, percentage 12.00% 15.00% 12.00% 14.00%