EVERI HOLDINGS INC., 10-Q filed on 8/4/2021
Quarterly Report
v3.21.2
Cover - shares
 6 Months Ended
Jun. 30, 2021
Aug. 02, 2021
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2021  
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, 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, $0.001 par value  
Trading Symbol EVRI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   90,089,384
Entity Central Index Key 0001318568  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q2  
v3.21.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Revenues        
Revenues $ 172,582 $ 38,715 $ 311,695 $ 152,024
Costs and expenses        
Operating expenses 48,178 41,603 86,221 80,501
Research and development 8,766 5,193 17,179 13,924
Depreciation 15,931 16,294 32,108 32,537
Amortization 14,369 19,295 29,084 38,619
Total costs and expenses 118,193 91,442 217,112 194,326
Operating income (loss) 54,389 (52,727) 94,583 (42,302)
Other expenses        
Interest expense, net of interest income 17,760 19,822 36,231 37,321
Loss on extinguishment of debt 0 80 0 7,457
Total other expenses 17,760 19,902 36,231 44,778
Income (loss) before income tax 36,629 (72,629) 58,352 (87,080)
Income tax provision (benefit) 415 (4,148) 1,604 (5,145)
Net income (loss) 36,214 (68,481) 56,748 (81,935)
Foreign currency translation 328 304 107 (1,654)
Comprehensive income (loss) $ 36,542 $ (68,177) $ 56,855 $ (83,589)
Earnings (loss) per share        
Basic (in dollars per share) $ 0.41 $ (0.80) $ 0.65 $ (0.97)
Diluted (in dollars per share) $ 0.36 $ (0.80) $ 0.57 $ (0.97)
Weighted average common shares outstanding        
Basic (in shares) 88,722 85,122 87,858 84,873
Diluted (in shares) 100,030 85,122 99,004 84,873
Games        
Revenues        
Revenues $ 99,337 $ 20,853 $ 175,488 $ 78,143
Costs and expenses        
Cost of revenues [1] 20,590 6,208 35,656 17,577
Operating expenses 17,565 22,714 32,160 37,519
Research and development 5,854 3,620 11,521 9,816
Depreciation 14,064 14,844 28,627 29,572
Amortization 10,675 15,315 21,659 30,900
Total costs and expenses 68,748 62,701 129,623 125,384
Operating income (loss) 30,589 (41,848) 45,865 (47,241)
Games | Gaming operations        
Revenues        
Revenues 73,220 13,859 131,361 59,545
Costs and expenses        
Cost of revenues [1] 5,342 1,681 10,101 6,226
Games | Gaming equipment and systems        
Revenues        
Revenues 26,090 6,983 44,078 18,566
Costs and expenses        
Cost of revenues [1] 15,248 4,071 25,555 10,895
Games | Gaming other        
Revenues        
Revenues 27 11 49 32
Costs and expenses        
Cost of revenues [1] 0 456 0 456
FinTech        
Revenues        
Revenues 73,245 17,862 136,207 73,881
Costs and expenses        
Cost of revenues [1] 10,359 2,849 16,864 11,168
Operating expenses 30,613 18,889 54,061 42,981
Research and development 2,912 1,573 5,658 4,108
Depreciation 1,867 1,450 3,481 2,965
Amortization 3,694 3,980 7,425 7,719
Total costs and expenses 49,445 28,741 87,489 68,941
Operating income (loss) 23,800 (10,879) 48,718 4,940
FinTech | Financial access services        
Revenues        
Revenues 44,840 10,034 83,552 47,007
Costs and expenses        
Cost of revenues [1] 1,560 511 3,033 4,066
FinTech | Software and other        
Revenues        
Revenues 15,604 4,424 32,850 17,118
Costs and expenses        
Cost of revenues [1] 1,129 324 2,133 1,198
FinTech | Hardware        
Revenues        
Revenues 12,801 3,404 19,805 9,756
Costs and expenses        
Cost of revenues [1] $ 7,670 $ 2,014 $ 11,698 $ 5,904
[1] (1) Exclusive of depreciation and amortization.
v3.21.2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Current assets    
Cash and cash equivalents $ 340,361 $ 251,706
Settlement receivables 50,111 60,652
Trade and other receivables, net of allowances for credit losses of $4,790 and $3,689 at June 30, 2021 and December 31, 2020, respectively 95,705 74,191
Inventory 31,373 27,742
Prepaid expenses and other current assets 24,904 17,348
Total current assets 542,454 431,639
Non-current assets    
Property and equipment, net 113,256 112,323
Goodwill 681,992 681,974
Other intangible assets, net 195,084 214,627
Other receivables 13,482 14,620
Other assets 19,247 21,996
Total non-current assets 1,023,061 1,045,540
Total assets 1,565,515 1,477,179
Current liabilities    
Settlement liabilities 193,893 173,211
Accounts payable and accrued expenses 146,786 145,029
Current portion of long-term debt 1,250 1,250
Total current liabilities 341,929 319,490
Non-current liabilities    
Long-term debt, less current portion 1,129,627 1,128,003
Deferred tax liability, net 20,852 19,956
Other accrued expenses and liabilities 15,607 17,628
Total non-current liabilities 1,166,086 1,165,587
Total liabilities 1,508,015 1,485,077
Commitments and contingencies
Stockholders’ equity (deficit)    
Convertible preferred stock, $0.001 par value, 50,000 shares authorized and no shares outstanding at June 30, 2021 and December 31, 2020, respectively 0 0
Common stock, $0.001 par value, 500,000 shares authorized and 115,559 and 89,908 shares issued and outstanding at June 30, 2021, respectively, and 111,872 and 86,683 shares issued and outstanding at December 31, 2020, respectively 116 112
Additional paid-in capital 483,762 466,614
Accumulated deficit (237,872) (294,620)
Accumulated other comprehensive loss (1,084) (1,191)
Treasury stock, at cost, 25,652 and 25,190 shares at June 30, 2021 and December 31, 2020, respectively (187,422) (178,813)
Total stockholders’ equity (deficit) 57,500 (7,898)
Total liabilities and stockholders’ equity (deficit) $ 1,565,515 $ 1,477,179
v3.21.2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Current assets    
Allowances for doubtful accounts $ 4,790 $ 3,689
Stockholders’ equity (deficit)    
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) 115,559,000 111,872,000
Common stock outstanding (in shares) 89,908,000 86,683,000
Treasury stock (in shares) 25,652,000 25,190,000
v3.21.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Cash flows from operating activities    
Net income (loss) $ 56,748 $ (81,935)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:    
Depreciation 32,108 32,537
Amortization 29,084 38,619
Non-cash lease expense 2,399 2,195
Amortization of financing costs and discounts 2,344 1,941
Loss on sale or disposal of assets 1,486 101
Accretion of contract rights 4,637 3,170
Provision for credit losses 3,806 4,981
Deferred income taxes 896 (5,392)
Reserve for inventory obsolescence 1,211 1,021
Write-down of assets 0 11,033
Loss on extinguishment of debt 0 7,457
Stock-based compensation 8,452 7,123
Other non-cash items 0 456
Changes in operating assets and liabilities:    
Settlement receivables 10,546 35,998
Trade and other receivables (26,297) 12,202
Inventory (4,764) (9,880)
Prepaid expenses and other assets (7,146) 1,437
Settlement liabilities 20,682 (75,566)
Accounts payable and accrued expenses 27,326 (25,908)
Net cash provided by (used in) operating activities 163,518 (38,410)
Cash flows from investing activities    
Capital expenditures (49,234) (30,134)
Acquisitions, net of cash acquired (15,000) (15,000)
Proceeds from sale of property and equipment 19 86
Placement fee agreements 0 (875)
Net cash used in investing activities (64,215) (45,923)
Cash flows from financing activities    
Proceeds from incremental term loan 0 125,000
Repayment of incremental term loan (625) 0
Proceeds from revolving credit facility 0 35,000
Repayments of existing term loan 0 (13,500)
Repayments of unsecured notes 0 (89,619)
Fees associated with debt transactions 0 (11,128)
Proceeds from exercise of stock options 8,703 2,113
Treasury stock (8,612) (589)
Payment of contingent consideration, acquisition (9,875) 0
Net cash (used in) provided by financing activities (10,409) 47,277
Effect of exchange rates on cash and cash equivalents 67 (1,732)
Cash, cash equivalents and restricted cash    
Net increase (decrease) for the period 88,961 (38,788)
Balance, beginning of the period 252,349 296,610
Balance, end of the period 341,310 257,822
Supplemental cash disclosures    
Cash paid for interest 35,309 32,956
Cash paid (refunded) for income tax, net 566 (52)
Supplemental non-cash disclosures    
Accrued and unpaid capital expenditures 2,212 2,288
Transfer of leased gaming equipment to inventory $ 3,715 $ 5,578
v3.21.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Deficit
Accumulated Other Comprehensive (Loss)
Treasury Stock
Balance at beginning of period (in shares) at Dec. 31, 2019   109,493        
Balance at beginning of period at Dec. 31, 2019 $ 53,988 $ 109 $ 445,162 $ (212,940) $ (819) $ (177,524)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) (13,454)     (13,454)    
Foreign currency translation (1,958)       (1,958)  
Stock-based compensation expense 4,173   4,173      
Exercise of options (in shares)   298        
Exercise of options 1,642 $ 1 1,641      
Restricted share vesting and withholding (in shares)   15        
Restricted share vesting and withholding (42)         (42)
Balance at end of period (in shares) at Mar. 31, 2020   109,806        
Balance at end of period at Mar. 31, 2020 44,349 $ 110 450,976 (226,394) (2,777) (177,566)
Balance at beginning of period (in shares) at Dec. 31, 2019   109,493        
Balance at beginning of period at Dec. 31, 2019 53,988 $ 109 445,162 (212,940) (819) (177,524)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) (81,935)          
Balance at end of period (in shares) at Jun. 30, 2020   110,534        
Balance at end of period at Jun. 30, 2020 (18,762) $ 111 456,588 (294,875) (2,473) (178,113)
Balance at beginning of period (in shares) at Mar. 31, 2020   109,806        
Balance at beginning of period at Mar. 31, 2020 44,349 $ 110 450,976 (226,394) (2,777) (177,566)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) (68,481)     (68,481)    
Foreign currency translation 304       304  
Stock-based compensation expense 4,638   4,638      
Issuance of warrants 502   502      
Exercise of options (in shares)   149        
Exercise of options 473 $ 1 472      
Restricted share vesting and withholding (in shares)   579        
Restricted share vesting and withholding (547)         (547)
Balance at end of period (in shares) at Jun. 30, 2020   110,534        
Balance at end of period at Jun. 30, 2020 $ (18,762) $ 111 456,588 (294,875) (2,473) (178,113)
Balance at beginning of period (in shares) at Dec. 31, 2020 86,683 111,872        
Balance at beginning of period at Dec. 31, 2020 $ (7,898) $ 112 466,614 (294,620) (1,191) (178,813)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 20,534     20,534    
Foreign currency translation (221)       (221)  
Stock-based compensation expense 3,005   3,005      
Exercise of warrants (in shares)   378        
Exercise of options (in shares)   561        
Exercise of options 2,285 $ 1 2,284      
Restricted share vesting and withholding (in shares)   41        
Restricted share vesting and withholding (173)   (1)     (172)
Balance at end of period (in shares) at Mar. 31, 2021   112,852        
Balance at end of period at Mar. 31, 2021 $ 17,532 $ 113 471,902 (274,086) (1,412) (178,985)
Balance at beginning of period (in shares) at Dec. 31, 2020 86,683 111,872        
Balance at beginning of period at Dec. 31, 2020 $ (7,898) $ 112 466,614 (294,620) (1,191) (178,813)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) $ 56,748          
Balance at end of period (in shares) at Jun. 30, 2021 89,908 115,559        
Balance at end of period at Jun. 30, 2021 $ 57,500 $ 116 483,762 (237,872) (1,084) (187,422)
Balance at beginning of period (in shares) at Mar. 31, 2021   112,852        
Balance at beginning of period at Mar. 31, 2021 17,532 $ 113 471,902 (274,086) (1,412) (178,985)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 36,214     36,214    
Foreign currency translation 328       328  
Stock-based compensation expense 5,447   5,447      
Exercise of options (in shares)   1,358        
Exercise of options 6,418 $ 2 6,416      
Restricted share vesting and withholding (in shares)   1,349        
Restricted share vesting and withholding $ (8,439) $ 1 (3)     (8,437)
Balance at end of period (in shares) at Jun. 30, 2021 89,908 115,559        
Balance at end of period at Jun. 30, 2021 $ 57,500 $ 116 $ 483,762 $ (237,872) $ (1,084) $ (187,422)
v3.21.2
BUSINESS
 6 Months Ended
Jun. 30, 2021
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 is a leading supplier of imaginative entertainment and trusted technology solutions for the casino and digital gaming industry. Everi’s mission is to lead the gaming industry through the power of people, imagination and technology. With a focus on player engagement and helping casino customers operate more efficiently, the Company develops entertaining game content and gaming machines, gaming systems and services for land-based and iGaming operators. The Company is also a preeminent and comprehensive provider of trusted financial technology solutions that power the casino floor while improving operational efficiencies and fulfilling regulatory compliance requirements, including products and services that offer convenient and secure cash and cashless financial transactions, self-service player loyalty tools and applications, and regulatory and intelligence software.
Everi reports its financial performance, and organizes and manages its operations, across the following two business segments: (i) Games and (ii) FinTech.
Everi Games provides gaming operators with gaming technology products and services, including: (i) gaming machines, primarily comprising Class II and Class III 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”) and business-to-consumer (“B2C”) digital online gaming activities.
Everi FinTech provides gaming operators with financial technology products and services, including: financial access and deposit-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. In addition, we provide an end-to-end security suite to protect against cyber-related attacks and maintain the necessary secured environments to maintain compliance with applicable regulatory requirements. 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; federally insured deposit accounts for the CashClub Wallet, check warranty services, self-service ATMs and fully integrated kiosk and 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.
With respect to our FinTech business, we have made the following updates to certain of our financial statement descriptions, where applicable: (i) “Cash access services” has become “Financial access services;” (ii) “ATM” has been renamed “Funds dispensed;” (iii) “Equipment” has been changed to “Hardware;” and (iv) “Information services and other” has been revised to “Software and other.” These naming convention changes better represent how our business has evolved.
Impact of the Coronavirus Disease 2019 (“COVID-19”) Pandemic
The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains, temporarily lowered equity market valuations, created significant volatility in the financial markets, increased unemployment levels, and caused temporary, and in certain cases, permanent closures of many businesses. The gaming industry was not immune to these factors as our casino customers closed their gaming establishments in the first quarter of 2020, and as a result, our operations experienced significant disruptions in the first three quarters of 2020. At the immediate onset of the COVID-19 pandemic, we were affected by various measures, including, but not limited to: the institution of social distancing and sheltering-in-place requirements in many states and communities where we operate, which significantly impacted demand for our products and services, and resulted in office closures, the furlough of a majority of our employees, the implementation of temporary base salary reductions for our employees and the implementation of a work-from-home policy.
Since the onset of COVID-19, we have implemented measures to mitigate our exposure throughout the global pandemic. While there may be further uncertainty facing our customers as a result of COVID-19, we continue to evaluate our business strategies and the impacts of the global pandemic on our results of operations and financial condition and make business decisions to mitigate further risk. It is unclear when, and if, customer volumes will consistently return to pre-COVID levels, the extent a resurgence of COVID-19 could result in the further or re-closure of casinos by federal, state, tribal or municipal governments and regulatory agencies or by the casino operators themselves in an effort to contain the COVID-19 global pandemic or mitigate its impact and the impact of vaccines on these matters; however, we continue to monitor the impacts of the global pandemic and make adjustments to our business, accordingly.

Industry conditions have improved as many of the casino properties that again temporarily closed operations in late 2020 began reopening in the first and second quarters of 2021. At the onset of the pandemic, our customers implemented protocols intended to protect their patrons and guests from potential COVID-19 exposure and re-establish customer confidence in the gaming and hospitality industry. These measures included enhanced sanitization, limitations on public gathering and casino capacity, patron social distancing requirements, limitations on casino operations and amenities, which have limited the number of patrons that are able or who desire to attend these venues. This has also impacted the pace at which demand for our products and services rebounds.
With some limitations still in effect, we expect that demand for our products and services will continue to be tempered in the short-term, to the extent gaming activity decreases at our customers’ locations or fails to increase at expected rates of return to pre-pandemic levels and to the extent our customers decide to restrict their capital spending as a result of uncertainty in the industry, or otherwise. As a result, we continue to monitor and manage liquidity levels and we may, from time to time, evaluate available capital resource alternatives on acceptable terms to provide additional financial flexibility.
The impact of the COVID-19 pandemic also exacerbates the risks disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “Annual Report”), including, but not limited to: our ability to comply with the terms of our indebtedness; our ability to generate revenues, earn profits and maintain adequate liquidity; our ability to service existing and attract new customers and maintain our overall competitiveness in the market; the potential for significant fluctuations in demand for our services; overall trends in the gaming industry impacting our business; and potential volatility in our stock price, among other consequences such as cybersecurity exposure.
v3.21.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 6 Months Ended
Jun. 30, 2021
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 unaudited condensed consolidated 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, 2021 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 Annual Report.
We evaluate the composition of our revenues to maintain compliance with SEC Regulation S-X Section 210.5-3, which requires us to separately present certain categories of revenues that exceed the quantitative threshold on our Statements of Operations.
Revenue Recognition
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 18 — 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):
Six Months Ended June 30,
20212020
Contract assets(1)
Balance at January 1 — current$9,240 $8,634 
Balance at January 1 — non-current8,321 6,774 
Total
17,561 15,408 
Balance at June 30 - current9,994 8,392 
Balance at June 30 - non-current7,252 7,754 
Total
17,246 16,146 
(Decrease)/increase
$(315)$738 
Contract liabilities(2)
Balance at January 1 — current$26,980 $28,510 
Balance at January 1 — non-current289 354 
Total
27,269 28,864 
Balance at June 30 - current30,694 39,318 
Balance at June 30 - non-current466 103 
Total
31,160 39,421 
Increase
$3,891 $10,557 
(1)  The current portion of contract assets is included within trade and other receivables, net, and the non-current portion is included within other receivables in our Balance Sheets.
(2)  The current portion of contract liabilities is included within accounts payable and accrued expenses, and the non-current portion is included within other accrued expenses and liabilities in our Balance Sheets.
We recognized approximately $18.0 million and $17.0 million in revenue that was included in the beginning contract liability balance during the six months ended June 30, 2021 and 2020, 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, VLTs, B2B and B2C 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; (ii) Gaming Equipment and Systems; and (iii) Gaming Other.
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 $51.7 million and $92.5 million for the three and six months ended June 30, 2021, respectively, and $10.4 million and $44.4 million for the three and six months ended June 30, 2020, respectively.
FinTech Revenues
Our FinTech products and services include solutions that we offer to gaming establishments to provide their patrons with financial access and deposit-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. In addition, we provide an end-to-end security suite to protect against cyber-related attacks and maintain the necessary secured environments to maintain compliance with applicable regulatory requirements. 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; federally insured deposit accounts for the CashClub Wallet, check warranty services, self-service ATMs and fully integrated kiosk and 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 new financial access kiosk and related equipment sales contracts accounted for under ASC 842 during the three and six months ended June 30, 2021 and 2020.
Restricted Cash
Our restricted cash primarily consists of: (i) funds held in connection with certain customer agreements; (ii) deposits held in connection with a sponsorship agreement; (iii) wide area progressive (“WAP”)-related restricted funds; and (iv) internet-related financial access activities. 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, 2021 (in thousands).
Classification on our Balance Sheets
At June 30, 2021At December 31, 2020
Cash and cash equivalentsCash and cash equivalents$340,361 $251,706 
Restricted cash - currentPrepaid expenses and other current assets848 542 
Restricted cash - non-currentOther assets101 101 
Total
$341,310 $252,349 
Allowance for Credit Losses
We continually evaluate the collectability of outstanding balances and maintain an allowance for credit losses related to our trade and other receivables and notes receivable that have been determined to have a high risk of uncollectability, which represents our best estimates of the current expected credit losses to be incurred in the future. To derive our estimates, we analyze historical collection trends and changes in our customer payment patterns, current and expected conditions and market trends along with our operating forecasts, concentration, and creditworthiness when evaluating the adequacy of our allowance for credit losses. In addition, with respect to our check warranty receivables, we are exposed to risk for the losses associated with warranted items that cannot be collected from patrons issuing these items. We evaluate the collectability of the outstanding balances and establish a reserve for the face amount of the current expected credit losses related to these receivables. The provision for doubtful accounts receivable is included within operating expenses and the check warranty loss reserves are included within financial access services cost of revenues in the Statements of Operations.
Goodwill
Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. We test for impairment annually on a reporting unit basis, at the beginning of our fourth fiscal quarter and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The annual impairment test is completed using either: a qualitative “Step 0” assessment based on reviewing relevant events and circumstances; or a quantitative “Step 1” assessment, which determines the fair value of the reporting unit, using both an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether or not any impairment exists. To the extent the carrying amount of a reporting unit is less than its estimated fair value, an impairment charge is recorded.
The evaluation of impairment of goodwill requires the use of estimates about future operating results. Changes in forecasted operations can materially affect these estimates, which could materially affect our results of operations and financial condition. The estimates of expected future cash flows require significant judgment and are based on assumptions we determined to be reasonable; however, they are unpredictable and inherently uncertain, including, estimates of future growth rates, operating margins and assumptions about the overall economic climate as well as the competitive environment within which we operate. There can be no assurance that our estimates and assumptions made for purposes of our impairment assessments as of the time of evaluation will prove to be accurate predictions of the future. If our assumptions regarding business plans, competitive environments, or anticipated growth rates are not correct, we may be required to record non-cash impairment charges in future periods, whether in connection with our normal review procedures periodically, or earlier, if an indicator of an impairment is present prior to such evaluation.
Our reporting units are identified as operating segments or one level below. Reporting units must: (i) engage in business activities from which they earn revenues and incur expenses; (ii) have operating results that are regularly reviewed by our segment management to ascertain the resources to be allocated to the segment and assess its performance; and (iii) have discrete financial information available. As of June 30, 2021, our reporting units included: (i) Games; (ii) Financial Access Services; (iii) Kiosk Sales and Services; (iv) Central Credit Services; (v) Compliance Sales and Services; and (vi) Loyalty Sales and Services.
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 using appropriate interest rates. As of June 30, 2021 and December 31, 2020, 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 (dollars in thousands):
 Level of HierarchyFair ValueOutstanding Balance
June 30, 2021   
Term loan2$734,728 $735,500 
Incremental term loan2$129,319 $123,750 
Senior unsecured notes2$296,454 $285,381 
December 31, 2020   
Term loan2$729,138 $735,500 
Incremental term loan2$129,972 $124,375 
Senior unsecured notes2$296,083 $285,381 
Our borrowings’ fair values were determined using Level 2 inputs based on quoted market prices for these securities.
Reclassification of Prior Year Balances
Reclassifications were made to prior-period Financial Statements to conform to the current period presentation, where applicable.
Recent Accounting Guidance
Recently Adopted Accounting Guidance
StandardDescriptionDate of AdoptionEffect on Financial Statements
Accounting Standard Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
This ASU simplifies the accounting for income taxes by removing certain exceptions for investments, intraperiod allocations, and interim calculations, and adds guidance to reduce the complexity of applying Topic 740.January 1, 2021The adoption of this ASU did not have a material effect on our Financial Statements or on our disclosures.
Recent Accounting Guidance Not Yet Adopted
As of June 30, 2021, we did not identify recently issued accounting guidance that would have a significant impact on our consolidated financial statements.
v3.21.2
LEASES
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
LEASES LEASES
We determine if a contract is, or contains, a lease at the inception, or modification, of a contract based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of an asset is predicated upon the notion that a lessee has both the right to (i) obtain substantially all of the economic benefit from the use of the asset; and (ii) direct the use of the asset.
Operating lease right-of-use (“ROU”) assets and liabilities are recognized based on the present value of minimum lease payments over the expected lease term at commencement date. Lease expense is recognized on a straight-line basis over the expected lease term. Our lease arrangements have both lease and non-lease components, and we have elected the practical expedient to account for the lease and non-lease elements as a single lease.
Certain of our lease arrangements contain options to renew with terms that generally have the ability to extend the lease term to a range of approximately 1 to 10 years. The exercise of lease renewal options is generally at our sole discretion. The expected lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such option. The depreciable life of leased assets and leasehold improvements are limited by the expected term of such assets, unless there is a transfer of title or purchase option reasonably certain to be exercised.
Lessee
We enter into operating lease agreements for real estate purposes that generally consist of buildings for office space and warehouses for manufacturing purposes. Certain of our lease agreements consist of rental payments that are periodically adjusted for inflation. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. Our lease agreements do not generally provide explicit rates of interest; therefore, we use our incremental collateralized borrowing rate, which is based on a fully collateralized and fully amortizing loan with a maturity date the same as the length of the lease that is based on the information available at the commencement date to determine the present value of lease payments. Leases with an expected term of 12 months or less (short-term) are not accounted for on our Balance Sheets. As of June 30, 2021 and December 31, 2020, our finance leases were not material.
Supplemental balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2021At December 31, 2020
Assets
Operating lease ROU assetsOther assets, non-current$14,369 $16,104 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$5,410 $5,649 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$14,160 $16,077 
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Cash paid for:
Long-term operating leases$1,745 $1,983 $3,370 $3,281 
Short-term operating leases$389 $479 $819 $969 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases(1)
$667 $156 $667 $860 
(1) The amounts are presented net of current year terminations and exclude amortization for the period.
Other information related to lease terms and discount rates is as follows:
At June 30, 2021At December 31, 2020
Weighted Average Remaining Lease Term (in years):
Operating leases3.894.16
Weighted Average Discount Rate:
Operating leases5.13 %5.16 %
Components of lease expense, which are included in operating expenses, are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Operating Lease Cost:
Operating lease cost (1)
$1,456 $1,365 $2,916 $2,737 
Variable lease cost $385 $468 $635 $912 
(1) The amount includes approximately $1.2 million and $2.4 million in non-cash lease expense for the three and six months ended June 30, 2021, respectively, and $1.1 million and $2.2 million for the three and six months ended June 30, 2020, respectively.
Maturities of lease liabilities are summarized as follows as of June 30, 2021 (in thousands):
Year Ending December 31, Amount
2021 (excluding the six months ended June 30, 2021)
$3,184 
20226,160 
20234,780 
20243,548 
20252,889 
Thereafter1,044 
Total future minimum lease payments 21,605 
Amount representing interest 2,035 
Present value of future minimum lease payments19,570 
Current operating lease obligations5,410 
Long-term lease obligations$14,160 
Lessor
We generate lease revenues primarily from our gaming operations activities, and the majority of our leases are month-to-month leases. Under these arrangements, we retain ownership of the electronic gaming machines (“EGMs”) installed at customer facilities. We receive recurring revenues based on a percentage of the net win per day generated by the leased gaming equipment or a fixed daily fee. Such revenues are generated daily and are limited to the lesser of the net win per day generated by the leased gaming equipment or the fixed daily fee and the lease payments that have been collected from the lessee. Certain of our leases have terms and conditions with options for a lessee to purchase the underlying assets. Refer to "Note 9 - Property and Equipment" for details of our rental pool assets cost and accumulated depreciation.
We did not have material sales transactions that qualified for sales-type lease accounting treatment during the three and six months ended June 30, 2021 and 2020. Our interest income recognized in connection with sales-type leases executed in the prior periods was not material.
Supplemental balance sheet information related to our sales-type leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2021At December 31, 2020
Assets
Net investment in sales-type leases — currentTrade and other receivables, net$1,352 $1,397 
Net investment in sales-type leases — non-currentOther receivables$372 $803 
LEASES LEASES
We determine if a contract is, or contains, a lease at the inception, or modification, of a contract based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of an asset is predicated upon the notion that a lessee has both the right to (i) obtain substantially all of the economic benefit from the use of the asset; and (ii) direct the use of the asset.
Operating lease right-of-use (“ROU”) assets and liabilities are recognized based on the present value of minimum lease payments over the expected lease term at commencement date. Lease expense is recognized on a straight-line basis over the expected lease term. Our lease arrangements have both lease and non-lease components, and we have elected the practical expedient to account for the lease and non-lease elements as a single lease.
Certain of our lease arrangements contain options to renew with terms that generally have the ability to extend the lease term to a range of approximately 1 to 10 years. The exercise of lease renewal options is generally at our sole discretion. The expected lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such option. The depreciable life of leased assets and leasehold improvements are limited by the expected term of such assets, unless there is a transfer of title or purchase option reasonably certain to be exercised.
Lessee
We enter into operating lease agreements for real estate purposes that generally consist of buildings for office space and warehouses for manufacturing purposes. Certain of our lease agreements consist of rental payments that are periodically adjusted for inflation. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. Our lease agreements do not generally provide explicit rates of interest; therefore, we use our incremental collateralized borrowing rate, which is based on a fully collateralized and fully amortizing loan with a maturity date the same as the length of the lease that is based on the information available at the commencement date to determine the present value of lease payments. Leases with an expected term of 12 months or less (short-term) are not accounted for on our Balance Sheets. As of June 30, 2021 and December 31, 2020, our finance leases were not material.
Supplemental balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2021At December 31, 2020
Assets
Operating lease ROU assetsOther assets, non-current$14,369 $16,104 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$5,410 $5,649 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$14,160 $16,077 
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Cash paid for:
Long-term operating leases$1,745 $1,983 $3,370 $3,281 
Short-term operating leases$389 $479 $819 $969 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases(1)
$667 $156 $667 $860 
(1) The amounts are presented net of current year terminations and exclude amortization for the period.
Other information related to lease terms and discount rates is as follows:
At June 30, 2021At December 31, 2020
Weighted Average Remaining Lease Term (in years):
Operating leases3.894.16
Weighted Average Discount Rate:
Operating leases5.13 %5.16 %
Components of lease expense, which are included in operating expenses, are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Operating Lease Cost:
Operating lease cost (1)
$1,456 $1,365 $2,916 $2,737 
Variable lease cost $385 $468 $635 $912 
(1) The amount includes approximately $1.2 million and $2.4 million in non-cash lease expense for the three and six months ended June 30, 2021, respectively, and $1.1 million and $2.2 million for the three and six months ended June 30, 2020, respectively.
Maturities of lease liabilities are summarized as follows as of June 30, 2021 (in thousands):
Year Ending December 31, Amount
2021 (excluding the six months ended June 30, 2021)
$3,184 
20226,160 
20234,780 
20243,548 
20252,889 
Thereafter1,044 
Total future minimum lease payments 21,605 
Amount representing interest 2,035 
Present value of future minimum lease payments19,570 
Current operating lease obligations5,410 
Long-term lease obligations$14,160 
Lessor
We generate lease revenues primarily from our gaming operations activities, and the majority of our leases are month-to-month leases. Under these arrangements, we retain ownership of the electronic gaming machines (“EGMs”) installed at customer facilities. We receive recurring revenues based on a percentage of the net win per day generated by the leased gaming equipment or a fixed daily fee. Such revenues are generated daily and are limited to the lesser of the net win per day generated by the leased gaming equipment or the fixed daily fee and the lease payments that have been collected from the lessee. Certain of our leases have terms and conditions with options for a lessee to purchase the underlying assets. Refer to "Note 9 - Property and Equipment" for details of our rental pool assets cost and accumulated depreciation.
We did not have material sales transactions that qualified for sales-type lease accounting treatment during the three and six months ended June 30, 2021 and 2020. Our interest income recognized in connection with sales-type leases executed in the prior periods was not material.
Supplemental balance sheet information related to our sales-type leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2021At December 31, 2020
Assets
Net investment in sales-type leases — currentTrade and other receivables, net$1,352 $1,397 
Net investment in sales-type leases — non-currentOther receivables$372 $803 
v3.21.2
BUSINESS COMBINATIONS
 6 Months Ended
Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]  
BUSINESS COMBINATIONS BUSINESS COMBINATIONS
We had no material acquisitions for the three and six months ended June 30, 2021.
Atrient, Inc.
On March 8, 2019, we acquired certain assets of Atrient, Inc. (“Atrient,” the “Seller”), a privately held company that developed and distributed hardware and software applications to gaming operators to enhance gaming patron loyalty, pursuant to an asset purchase agreement. This acquisition included existing contracts with gaming operators, technology, and intellectual property that allow us to provide gaming operators with self-service enrollment, loyalty and marketing equipment, a mobile application to offer a gaming operator’s patrons additional flexibility in accessing casino promotions, and a marketing platform that manages and delivers a gaming operator’s marketing programs through these patron interfaces. This acquisition expanded our financial technology solutions offerings within our FinTech segment. Under the terms of the asset purchase agreement, we paid the Seller $20.0 million at the closing of the transaction, $10.0 million one year following the closing and another $10.0 million during the six months ended June 30, 2021. The related liabilities were recorded at fair value on the acquisition date as part of the consideration transferred and were included in accounts payable and accrued expenses as of December 31, 2020.
Furthermore, an additional amount of approximately $9.9 million in contingent consideration was earned by the Seller based upon the achievement of certain revenue targets over the first two years post-closing, which we paid in June 2021. The related liabilities were recorded at fair value on the acquisition date as part of the consideration transferred and were remeasured each reporting period. The inputs used to measure the fair value of our liabilities were categorized as Level 3 in the fair value hierarchy. Contingent consideration liabilities as of December 31, 2020 was approximately $9.9 million, and was included in accounts payable and accrued expenses in our Balance Sheets as of December 31, 2020.
Micro Gaming Technologies, Inc.
On December 24, 2019, we acquired certain assets of Micro Gaming Technologies, Inc. (“MGT”), a privately held company that developed and distributed kiosks and software applications to gaming patrons to enhance patron loyalty, in an asset purchase agreement. The acquired assets consisted of existing contracts with gaming operators, technology, and intellectual property intended to allow us to provide gaming operators with self-service patron loyalty functionality delivered through stand-alone kiosk equipment and a marketing platform that manages and delivers gaming operators marketing programs through these patron interfaces. This acquisition further expanded our financial technology loyalty offerings within our FinTech segment. Under the terms of the asset purchase agreement, we paid MGT $15.0 million at the closing of the transaction, with an additional $5.0 million due by April 1, 2020 and a final payment of $5.0 million due two years following the date of closing.
In the second quarter of 2020, we entered into an amendment to the asset purchase agreement allowing us to remit the additional $5.0 million by July 1, 2020, which we paid in June 2020. The final payment of $5.0 million due by July 1, 2021 was paid in June 2021. The related liabilities were recorded at fair value on the acquisition date as part of the consideration transferred and was included in accounts payable and accrued expenses as of December 31, 2020. The total consideration for this acquisition was approximately $25.0 million. The acquisition did not have a significant impact on our results of operations or financial condition.
v3.21.2
FUNDING AGREEMENTS
 6 Months Ended
Jun. 30, 2021
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 $0.9 million and $1.6 million for the three and six months ended June 30, 2021, respectively, and approximately $0.2 million and $1.7 million for the three and six months ended June 30, 2020, 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 $439.1 million and $340.3 million as of June 30, 2021 and December 31, 2020, 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 as defined within the agreement or otherwise permitted by the vault cash provider. The term of the agreement expires on June 30, 2023 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, 2021 and 2020.
v3.21.2
TRADE AND OTHER RECEIVABLES
 6 Months Ended
Jun. 30, 2021
Receivables [Abstract]  
TRADE AND OTHER RECEIVABLES TRADE AND OTHER RECEIVABLESTrade and other receivables represent short-term credit granted to customers and long-term loans receivable in connection with our Games and FinTech equipment and compliance products. Trade and loans receivables generally do not require collateral. The balance of trade and loans receivables consists of outstanding balances owed to us by gaming establishments. 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,
20212020
Trade and other receivables, net  
Games trade and loans receivables$68,384 $44,794 
FinTech trade and loans receivables
19,782 14,683 
Contract assets(1)
17,246 17,561 
Net investment in sales-type leases
1,724 2,200 
Insurance settlement receivable(2)
— 7,650 
Other receivables
2,051 1,923 
Total trade and other receivables, net109,187 88,811 
Non-current portion of receivables  
Games trade and loans receivables(1,428)(1,333)
FinTech trade and loans receivables
(4,430)(4,163)
Contract assets(1)
(7,252)(8,321)
Net investment in sales-type leases
(372)(803)
Total non-current portion of receivables(13,482)(14,620)
Total trade and other receivables, current portion$95,705 $74,191 
(2) Refer to “Note 13 — Commitments and Contingencies” for a discussion on the insurance settlement receivable.
Allowance for Credit Losses
The activity in our allowance for credit losses for the six months ended June 30, 2021 and 2020 is as follows (in thousands):
Six Months Ended June 30,
20212020
Beginning allowance for credit losses$(3,689)$(5,786)
Provision(3,806)(4,981)
Charge-offs and recoveries2,705 8,162 
Ending allowance for credit losses$(4,790)$(2,605)
v3.21.2
INVENTORY
 6 Months Ended
Jun. 30, 2021
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,
 20212020
Inventory  
Component parts, net of reserves of $1,981 and $1,262 at June 30, 2021 and December 31, 2020, respectively
$22,686 $21,560 
Work-in-progress
1,383 182 
Finished goods
7,304 6,000 
Total inventory
$31,373 $27,742 
v3.21.2
PREPAID EXPENSES AND OTHER ASSETS
 6 Months Ended
Jun. 30, 2021
Prepaid Expense and Other Assets [Abstract]  
PREPAID EXPENSES AND OTHER ASSETS PREPAID EXPENSES AND OTHER ASSETS
Prepaid expenses and other assets include the balance of prepaid expenses, deposits, debt issuance costs on our Revolving Credit Facility (defined herein), restricted cash, operating lease ROU assets, and other assets. The current portion of these assets is included in prepaid expenses and other current assets and the non-current portion is included in other assets, both of which are contained within the Balance Sheets.
The balance of the current portion of prepaid expenses and other assets consisted of the following (in thousands):
 At June 30,At December 31,
 20212020
Prepaid expenses and other current assets  
Prepaid expenses
$16,447 $11,282 
Deposits
5,933 4,133 
Restricted cash(1)
848 542 
Other
1,676 1,391 
Total prepaid expenses and other current assets$24,904 $17,348 
(1) Refer to “Note 2 — Basis of Presentation and Summary of Significant Accounting Policies” for discussion on the composition of the restricted cash balance.
The balance of the non-current portion of other assets consisted of the following (in thousands): 
 At June 30,At December 31,
 20212020
Other assets  
Operating lease ROU assets
$14,369 $16,104 
Prepaid expenses and deposits
4,160 4,952 
Debt issuance costs of revolving credit facility
173 267 
Other
545 673 
Total other assets
$19,247 $21,996 
v3.21.2
PROPERTY AND EQUIPMENT
 6 Months Ended
Jun. 30, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
Property and equipment consist of the following (dollars in thousands): 
  At June 30, 2021At December 31, 2020
Useful Life
(Years)		CostAccumulated
Depreciation		Net Book
Value		CostAccumulated
Depreciation		Net Book
Value
Property and equipment       
Rental pool - deployed
2-4
$228,739 $150,446 $78,293 $216,775 $136,975 $79,800 
Rental pool - undeployed
2-4
21,969 17,961 4,008 21,974 16,680 5,294 
FinTech equipment
1-5
32,757 20,925 11,832 33,349 21,947 11,402 
Leasehold and building improvementsLease Term12,417 8,548 3,869 11,352 8,557 2,795 
Machinery, office, and other equipment
1-5
40,190 24,936 15,254 45,085 32,053 13,032 
Total property and equipment $336,072 $222,816 $113,256 $328,535 $216,212 $112,323 
Depreciation expense related to property and equipment totaled approximately $15.9 million and $32.1 million for the three and six months ended June 30, 2021, and approximately $16.3 million and $32.5 million for the three and six months ended June 30, 2020, respectively.
v3.21.2
GOODWILL AND OTHER INTANGIBLE ASSETS
 6 Months Ended
Jun. 30, 2021
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 $682.0 million at June 30, 2021 and December 31, 2020, 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; and (vi) Loyalty Sales and Services.
In accordance with ASC 350 (“Intangibles-Goodwill and Other”), we test goodwill at the reporting unit level, which is identified as an operating segment or one level below, for impairment on an annual basis and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
We test our goodwill for impairment on October 1 each year, or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The annual impairment test is completed using either: a qualitative “Step 0” assessment based on reviewing relevant events and circumstances or a quantitative “Step 1” assessment, which determines the fair value of the reporting unit, using both an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether or not any impairment exists. To the extent the carrying amount of a reporting unit is less than its estimated fair value, an impairment charge is recorded.
There was no impairment identified for our goodwill for the three and six months ended June 30, 2021 and 2020.
Other Intangible Assets
Other intangible assets consist of the following (dollars in thousands): 
  At June 30, 2021At December 31, 2020
Useful Life
(Years)		CostAccumulated
Amortization		Net Book
Value		CostAccumulated
Amortization		Net Book
Value
Other intangible assets       
Contract rights under placement fee agreements
3-7
$60,561 $32,744 $27,817 $60,561 $28,108 $32,453 
Customer contracts
3-14
71,975 56,716 15,259 71,975 54,407 17,568 
Customer relationships
3-7
231,100 137,032 94,068 231,100 126,549 104,551 
Developed technology and software
1-6
325,741 268,883 56,858 313,957 255,771 58,186 
Patents, trademarks and other
2-18
19,682 18,600 1,082 19,682 17,813 1,869 
Total other intangible assets$709,059 $513,975 $195,084 $697,275 $482,648 $214,627 
Amortization expense related to other intangible assets was approximately $14.4 million and $29.1 million for the three and six months ended June 30, 2021, respectively, and approximately $19.3 million and $38.6 million for the three and six months ended June 30, 2020, respectively.
There were no placement fees for the three and six months ended June 30, 2021. We paid approximately $0.3 million and $0.9 million in placement fees for the three and six months ended June 30, 2020.
We evaluate our other intangible assets for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. During the three and six months ended June 30, 2021, there were no material write-downs of intangible assets.
During the three and six months ended June 30, 2020, we recorded a full write-down of assets of approximately $5.9 million, of which $5.5 million and $0.4 million, related to our Games and FinTech business, respectively, for certain of our internally developed and third-party software projects that were not expected to be pursued. This charge was reflected in operating expenses of our Statement of Operations.
v3.21.2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
 6 Months Ended
Jun. 30, 2021
Payables and Accruals [Abstract]  
ACCOUNTS PAYABLE AND ACCRUED EXPENSES ACCOUNTS PAYABLE AND ACCRUED EXPENSES
The following table presents our accounts payable and accrued expenses (in thousands):
 At June 30,At December 31,
 20212020
Accounts payable and accrued expenses  
Vendor commissions payable$57,089 $39,028 
Contract liabilities
30,694 26,980 
Payroll and related expenses
22,932 13,357 
Trade accounts payable
20,395 15,503 
Operating lease liabilities
5,410 5,649 
Accrued taxes
2,610 1,329 
Financial access processing and related expenses2,505 1,109 
Accrued interest
1,063 1,068 
Contingent consideration and acquisition-related liabilities(1)
— 24,674 
Litigation accrual(2)
— 12,727 
Other4,088 3,605 
Total accounts payable and accrued expenses
$146,786 $145,029 
(2) Refer to “Note 13 — Commitments and Contingencies.”
v3.21.2
LONG-TERM DEBT
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
LONG-TERM DEBT LONG-TERM DEBT
The following table summarizes our outstanding indebtedness (dollars in thousands):
 MaturityInterestAt June 30,At December 31,
 DateRate20212020
Long-term debt  
$820 million Term Loan Facility
2024
LIBOR+2.75%
$735,500 $735,500 
$125 million Incremental Term Loan Facility
2024
LIBOR+10.50%
123,750 124,375 
$35 million Revolving Credit Facility
2022
LIBOR+4.50%
— — 
Senior Secured Credit Facilities
859,250 859,875 
$375 million 2017 Unsecured Notes
20257.50%285,381 285,381 
Total debt
1,144,631 1,145,256 
Debt issuance costs and discount(13,754)(16,003)
Total debt after debt issuance costs and discount
1,130,877 1,129,253 
Current portion of long-term debt(1,250)(1,250)
Total long-term debt, net of current portion$1,129,627 $1,128,003 
Senior Secured Credit Facilities
Our Senior Secured Credit Facilities consist of: (i) an $820.0 million, seven-year senior secured first lien term loan facility (the “Term Loan Facility”); (ii) a $125.0 million, seven-year senior secured term loan (the “Incremental Term Loan”); and (iii) a $35.0 million, five-year senior secured revolving credit facility (the “Revolving Credit Facility”) provided for under our credit agreement with Everi Payments, as borrower, and Everi Holdings with the lenders party thereto and Jefferies Finance LLC, as administrative agent, collateral agent, swing line lender, letter of credit issuer, sole lead arranger and sole book manager (the “Credit Agreement”).
On February 2, 2021, we entered into the Fifth Amendment to our existing Credit Agreement, which reduced the LIBOR and Base Rate floor components of the interest rate of our Term Loan Facility by 0.25% from 1.00% to 0.75% and from 2.00% to 1.75%, respectively, with the LIBOR and Base Rate margins unchanged at 2.75% and 1.75%, respectively. The Term Loan Facility under the Credit Agreement will be subject to a prepayment premium of 1.00% of the principal amount repaid for any voluntary prepayment or mandatory prepayment with proceeds of debt that has a lower effective yield than the repriced Term Loan Facility or any amendment to the repriced Term Loan Facility that reduces the interest rate thereon, in each case, to the extent occurring within six months of the effective date of the Amendment. The maturity of the Term Loan Facility remains May 9, 2024, and no changes were made to the financial covenants or other debt repayment terms.
The weighted average interest rate on the Term Loan Facility was 3.50% and 3.54% for the three and six months ended June 30, 2021, respectively. The weighted average interest rate on the Incremental Term Loan was 11.50% for the three and six months ended June 30, 2021.
The Incremental Term Loan matures May 9, 2024. The interest rate per annum applicable to the Incremental Term Loan will be, at Everi Payment’s option, the Eurodollar rate plus 10.50% or the base rate plus 9.50%.
Voluntary prepayment of the Incremental Term Loan prior to the two-year anniversary of its closing date will be subject to a make-whole premium, and voluntary prepayments for the subsequent six-month period will be subject to a prepayment premium of 1.00% of the principal amount repaid.
Subject to certain exceptions, the obligations under the Credit Facilities are secured by substantially all of the present and subsequently acquired assets of each of Everi FinTech, Everi Holdings, and the subsidiary guarantors party thereto including: (a) a perfected first priority pledge of all the capital stock of Everi FinTech and each domestic direct, wholly owned material restricted subsidiary held by Everi Holdings, Everi FinTech, or any such subsidiary guarantor; and (b) a perfected first priority security interest in substantially all other tangible and intangible assets of Everi Holdings, Everi FinTech, and such subsidiary guarantors (including, but not limited to, accounts receivable, inventory, equipment, general intangibles, investment property, real property, intellectual property, and the proceeds of the foregoing). Subject to certain exceptions, the Credit Facilities are unconditionally guaranteed by Everi Holdings and such subsidiary guarantors.
The Credit Agreement contains certain covenants that, among other things, limit our ability, and the ability of certain of our subsidiaries, to incur additional indebtedness, sell assets or consolidate or merge with or into other companies, pay dividends or repurchase or redeem capital stock, make certain investments, issue capital stock of subsidiaries, incur liens, prepay, redeem or repurchase subordinated debt, and enter into certain types of transactions with our affiliates. The Credit Agreement also requires us, together with our subsidiaries, to comply with a maximum consolidated secured leverage ratio.
In connection with the issuance of the Incremental Term Loan on April 21, 2020, we also issued warrants to Sagard Credit Partners, LP and Sagard Credit Partners (Cayman), LP (collectively, “Sagard”) to acquire 184,670 and 40,330 shares of our common stock, respectively, with an exercise price equal to $5.37 per share. The warrants were issued in connection with the Incremental Term Loan as further consideration based on the level of participation in the arrangement by Sagard. The warrants were to expire on the fifth anniversary of the date of issuance. The number of shares issuable pursuant to the warrants and the warrant exercise price were subject to adjustment for stock splits, reverse stock splits, stock dividends, recapitalization, mergers and certain other events. In March 2021, the outstanding warrants issued to Sagard were exercised in full.
Senior Unsecured Notes
Our Senior Unsecured Notes (the “2017 USN”) originally issued in an aggregate principal amount of $375.0 million had an outstanding balance of approximately $285.4 million as of June 30, 2021, for which interest accrues at a rate of 7.50% per annum and is payable semi-annually in arrears on each of June 15 and December 15.
Compliance with Debt Covenants
We were in compliance with the covenants and terms of the Senior Secured Credit Facilities and the 2017 Unsecured Notes as of June 30, 2021.
v3.21.2
COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIESWe 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.
We accrued approximately $14.0 million for the legal contingencies in December 2019 in connection with Fair and Accurate Credit Transactions Act (“FACTA”)-related matters based on ongoing settlement negotiations by and among the various plaintiffs described in the FACTA-related matters discussion below and Everi by and on behalf of itself and Everi FinTech. We expected to recover approximately $7.7 million of the amount accrued from certain of our insurance providers in 2021, for which we had recorded an insurance settlement receivable included within trade and other receivables, net on our Balance Sheets. In addition, we were granted relief from Peleus Insurance Company pursuant to the provisions of our policy.
In the first quarter of 2021, we entered into a settlement agreement and received funds from our third-tier insurance carrier in the amount of approximately $1.9 million related to the FACTA matters. We recorded these proceeds against our operating expenses in our Statements of Operations for the first quarter of 2021. In total, the receivables expected have been received in full and the expenses accrued have been paid in full, which resulted in total funds received from our insurance providers of approximately $9.6 million and a net charge of approximately $4.4 million to our Statements of Operations, of which approximately $6.3 million was recorded in December 2019, offset by the reduction of operating expenses of $1.9 million received and recorded in the first quarter of 2021.
We did not have any new material legal matters that were accrued as of June 30, 2021.
FACTA-related matters:
Geraldine Donahue, et. al. v. Everi FinTech, et. al. (“Donahue”) is a putative class action matter filed on December 12, 2018, in the Circuit Court of Cook County, Illinois County Division, Chancery Division. The original defendant was dismissed and the Company was substituted as the defendant on April 22, 2019. Plaintiff, on behalf of himself and others similarly situated, alleges that Everi FinTech and the Company (i) have violated certain provisions of FACTA by their failure, as agent to the original defendant, to properly truncate patron credit card numbers when printing financial access receipts as required under FACTA, and (ii) have been unjustly enriched through the charging of service fees for transactions conducted at the original defendant’s facilities. Plaintiff sought an award of statutory damages, attorney’s fees, and costs. The parties settled this matter on a nationwide class basis. The settlement has since received final approval from the court, and Everi has paid all funds required pursuant to the settlement. Distributions to class members are in process, and a final hearing is set for October 4, 2021, to report to the court on the distribution metrics and determine what remaining unclaimed funds, if any, may be distributed to a nonprofit charitable organization as necessary.
NRT matter:
NRT Technology Corp., et. al. v. Everi Holdings Inc., et. al. is a civil action filed on April 30, 2019 against the Company 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. Plaintiffs seek compensatory damages, treble damages, and injunctive and declaratory relief. This case is proceeding through the discovery process. We are currently unable to determine the probability of the outcome or estimate the range of reasonably possible loss, if any, in this matter.
Zenergy Systems, LLC matter:
Zenergy Systems, LLC v. Everi Holdings Inc. is a civil action filed on May 29, 2020 against the Company 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 that expired in November 2019. The plaintiff is seeking compensatory and punitive damages. Everi has counterclaimed against Zenergy alleging breach of contract, breach of implied covenant of good faith and fair dealing, and for declaratory relief. The case is proceeding through the discovery process. We are currently unable to determine the probability of the outcome or estimate the range of reasonably possible loss, if any, in this matter.
In addition, we have commitments with respect to certain lease obligations discussed in “Note 3 — Leases” and installment payments under our asset purchase agreements discussed in “Note 4 — Business Combinations.”
v3.21.2
STOCKHOLDERS' EQUITY
 6 Months Ended
Jun. 30, 2021
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITYOn February 28, 2020, our Board of Directors authorized and approved a new share repurchase program granting us the authority to repurchase an amount not to exceed $10.0 million of outstanding Company common stock with no minimum number of shares that the Company is required to repurchase. This repurchase program commenced in the first quarter of 2020 and authorizes us to buy our common stock from time to time in open market transactions, block trades or in private transactions in accordance with trading plans established in accordance with Rules 10b5-1 and 10b-18 of the Securities Exchange Act of 1934, as amended, or by a combination of such methods, including compliance with the Company’s finance agreements. The share repurchase program is subject to available liquidity, general market and economic conditions, alternate uses for the capital and other factors, and may be suspended or discontinued at any time without prior notice. In light of COVID-19, we have suspended our share repurchase program. There were no share repurchases during the three and six months ended June 30, 2021 and 2020, respectively.
v3.21.2
WEIGHTED AVERAGE SHARES OF COMMON STOCK
 6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
WEIGHTED AVERAGE SHARES OF COMMON STOCK WEIGHTED AVERAGE SHARES OF COMMON STOCK
The weighted average number of shares 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,
 2021202020212020
Weighted average shares  
Weighted average number of common shares outstanding - basic88,722 85,122 87,858 84,873 
Potential dilution from equity awards(1)
11,308 — 11,146 — 
Weighted average number of common shares outstanding - diluted(1)
100,030 85,122 99,004 84,873 
(1) The were no shares that were anti-dilutive under the treasury stock method for the three months ended June 30, 2021, and there were approximately 0.2 million shares of common stock that were anti-dilutive under the treasury stock method for the six months ended June 30, 2021. We were in a net loss position for the three and six months ended June 30, 2020; therefore, no potential dilution from the application of the treasury stock method was applicable for the period.
v3.21.2
SHARE-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2021
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 (“RSUs”) with either time- or performance-based stock units criteria; (ii) time-based restricted stock units; (iii) time-based options; and (iv) market-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, 202010,261 4,250 
Granted— 960 
Exercised options or vested shares(1,919)(1,390)
Canceled or forfeited(6)(41)
Outstanding, June 30, 20218,336 3,779 
There are approximately 5.0 million awards of our common stock available for future equity grants under our existing equity incentive plans as of June 30, 2021.
v3.21.2
INCOME TAXES
 6 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The income tax provision for the three and six months ended June 30, 2021, reflected an effective income tax rate of 1.1% and 2.7%, respectively, which was less than the statutory federal rate of 21.0%, primarily due to a decrease in our valuation allowance for our deferred tax assets and the benefit from stock option exercises. The decrease in our valuation allowance was primarily due to book income earned during the period. The income tax benefit for the three and six months ended June 30, 2020 reflected an effective income tax rate of 5.7% and 5.9%, which was less than the statutory federal rate of 21.0%, primarily due to an increase in our valuation allowance due to book loss incurred during the period, partially offset by certain indefinite-lived deferred tax assets that can be offset against our indefinite lived deferred tax liabilities.
We have analyzed filing positions in all of the federal, state, and foreign jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. As of June 30, 2021, we recorded approximately $1.7 million of unrecognized tax benefits, all of which would impact our effective tax rate, if recognized. We do not anticipate that our unrecognized tax benefits will materially change within the next 12 months. We have not accrued any penalties and interest for our unrecognized tax benefits. We may, from time to time, be assessed interest or penalties by tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. Our policy for recording interest and penalties associated with audits and unrecognized tax benefits is to record such items as a component of income tax in our Statements of Operations.
v3.21.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2021
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 consists of the Chief Executive Officer, the President and Chief Operating Officer, and the Chief Financial Officer. 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. Our CODM determined that our operating segments for conducting business are: (i) Games and (ii) FinTech:
•The Games segment provides solutions directly to gaming establishments to offer their patrons gaming entertainment- related experiences including: leased gaming equipment; sales of gaming equipment; gaming systems; digital online solutions; and ancillary products and services.
•The FinTech segment provides solutions directly to gaming establishments to offer their patrons financial access-related services and products, including: access to cash and cashless funding at gaming facilities via debit withdrawals; credit card financial access transactions and POS debit card financial access transactions; check warranty services; kiosks for financial access and other services; self-service enrollment, loyalty and marketing equipment; maintenance services; compliance, audit, and data software; casino credit data and reporting services, and other ancillary offerings.
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 and no significant assets in foreign locations.
The following tables present segment information (in thousands)*:
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Games  
Revenues  
Gaming operations$73,220 $13,859 $131,361 $59,545 
Gaming equipment and systems26,090 6,983 44,078 18,566 
Gaming other27 11 49 32 
Total revenues99,337 20,853 175,488 78,143 
Costs and expenses  
Cost of revenues(1)
  
Gaming operations5,342 1,681 10,101 6,226 
Gaming equipment and systems15,248 4,071 25,555 10,895 
Gaming other— 456 — 456 
Cost of revenues20,590 6,208 35,656 17,577 
Operating expenses17,565 22,714 32,160 37,519 
Research and development5,854 3,620 11,521 9,816 
Depreciation14,064 14,844 28,627 29,572 
Amortization10,675 15,315 21,659 30,900 
Total costs and expenses68,748 62,701 129,623 125,384 
Operating income (loss)$30,589 $(41,848)$45,865 $(47,241)
(1) Exclusive of depreciation and amortization.
* Rounding may cause variances.
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
FinTech  
Revenues  
Financial access services$44,840 $10,034 $83,552 $47,007 
Software and other15,604 4,424 32,850 17,118 
Hardware12,801 3,404 19,805 9,756 
Total revenues73,245 17,862 136,207 73,881 
Costs and expenses  
Cost of revenues(1)
  
Financial access services1,560 511 3,033 4,066 
Software and other1,129 324 2,133 1,198 
Hardware7,670 2,014 11,698 5,904 
Cost of revenues10,359 2,849 16,864 11,168 
Operating expenses30,613 18,889 54,061 42,981 
Research and development2,912 1,573 5,658 4,108 
Depreciation1,867 1,450 3,481 2,965 
Amortization3,694 3,980 7,425 7,719 
Total costs and expenses49,445 28,741 87,489 68,941 
Operating income (loss)$23,800 $(10,879)$48,718 $4,940 
(1)  Exclusive of depreciation and amortization.
* Rounding may cause variances.
 At June 30,At December 31,
 20212020
Total assets  
Games$829,699 $811,523 
FinTech735,816 665,656 
Total assets$1,565,515 $1,477,179 
Major Customers. No single customer accounted for more than 10% of our revenues for the three and six months ended June 30, 2021 and 2020. Our five largest customers accounted for approximately 17% of our revenues for the three and six months ended June 30, 2021, and approximately 23% and 15% of our revenues for the three and six months ended June 30, 2020, respectively.
v3.21.2
SUBSEQUENT EVENTS
 6 Months Ended
Jun. 30, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
On July 15, 2021, Everi Holdings Inc. issued, at a price of par, $400 million in aggregate principal amount of 5.00% senior unsecured notes due 2029 (the “New Notes”). The New Notes were issued under an indenture dated July 15, 2021 by and among the Company and certain of Everi’s direct and indirect domestic subsidiaries, as guarantors (collectively the “Guarantors”) and Deutsche Bank Trust Company Americas, as trustee (the “Trustee”). The New Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Guarantors. Interest on the New Notes accrues at a rate of 5.00% per annum and is payable semi-annually in arrears on each of January 15 and July 15 (the “Interest Payment Dates”), commencing on January 15, 2022. The Company will make each interest payment to the holders of record on each January 1 and July 1 immediately preceding the Interest Payment Dates. A portion of the proceeds from the issuance of the New Notes was used to redeem in full the 2017 Unsecured Notes, including accrued interest and the early redemption charges, and pay the transaction fees and expenses related to the issuance of the New Notes.

On August 3, 2021 (the “Closing Date”), Everi Holdings Inc., as borrower, entered into a new credit agreement with the lenders party thereto and Jefferies Finance LLC, as administrative agent, collateral agent, swing line lender, and a letter of credit issuer, sole lead arranger and sole book manager (the “New Credit Facilities Agreement”). The New Credit Facilities Agreement provides for: (i) a $600 million, seven-year senior secured term loan facility due 2028 issued at 99.75% of par (the “New Term Loan”); and (ii) a $125 million five-year senior secured revolving credit facility due 2026 (the “New Revolver”), which was undrawn at the Closing Date, and together with the New Term Loan (the “New Credit Facilities”).

The interest rate per annum applicable to the New Credit Facilities will be, at the Company’s option, either the Eurodollar rate with a 0.50% LIBOR floor plus a margin of 2.50% or the base rate plus a margin of 1.50%.

The proceeds from the New Term Loan were used, together with the remaining proceeds from the New Notes and cash on hand, to: (i) prepay in full and terminate all commitments under our Term Loan Facility and Incremental Term Loan; (ii) redeem in full the 2017 Unsecured Notes; and (iii) pay the related transaction fees and expenses with respect to the aforementioned debt instruments.
v3.21.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 6 Months Ended
Jun. 30, 2021
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
Our unaudited condensed consolidated 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, 2021 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 Annual Report.
Revenue Recognition
Revenue Recognition
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 18 — 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):
Six Months Ended June 30,
20212020
Contract assets(1)
Balance at January 1 — current$9,240 $8,634 
Balance at January 1 — non-current8,321 6,774 
Total
17,561 15,408 
Balance at June 30 - current9,994 8,392 
Balance at June 30 - non-current7,252 7,754 
Total
17,246 16,146 
(Decrease)/increase
$(315)$738 
Contract liabilities(2)
Balance at January 1 — current$26,980 $28,510 
Balance at January 1 — non-current289 354 
Total
27,269 28,864 
Balance at June 30 - current30,694 39,318 
Balance at June 30 - non-current466 103 
Total
31,160 39,421 
Increase
$3,891 $10,557 
(1)  The current portion of contract assets is included within trade and other receivables, net, and the non-current portion is included within other receivables in our Balance Sheets.
(2)  The current portion of contract liabilities is included within accounts payable and accrued expenses, and the non-current portion is included within other accrued expenses and liabilities in our Balance Sheets.
We recognized approximately $18.0 million and $17.0 million in revenue that was included in the beginning contract liability balance during the six months ended June 30, 2021 and 2020, 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, VLTs, B2B and B2C 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; (ii) Gaming Equipment and Systems; and (iii) Gaming Other.
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 $51.7 million and $92.5 million for the three and six months ended June 30, 2021, respectively, and $10.4 million and $44.4 million for the three and six months ended June 30, 2020, respectively.
FinTech Revenues
Our FinTech products and services include solutions that we offer to gaming establishments to provide their patrons with financial access and deposit-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. In addition, we provide an end-to-end security suite to protect against cyber-related attacks and maintain the necessary secured environments to maintain compliance with applicable regulatory requirements. 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; federally insured deposit accounts for the CashClub Wallet, check warranty services, self-service ATMs and fully integrated kiosk and 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 new financial access kiosk and related equipment sales contracts accounted for under ASC 842 during the three and six months ended June 30, 2021 and 2020.
Restricted Cash Restricted CashOur restricted cash primarily consists of: (i) funds held in connection with certain customer agreements; (ii) deposits held in connection with a sponsorship agreement; (iii) wide area progressive (“WAP”)-related restricted funds; and (iv) internet-related financial access activities.
Allowance for Credit Losses Allowance for Credit LossesWe continually evaluate the collectability of outstanding balances and maintain an allowance for credit losses related to our trade and other receivables and notes receivable that have been determined to have a high risk of uncollectability, which represents our best estimates of the current expected credit losses to be incurred in the future. To derive our estimates, we analyze historical collection trends and changes in our customer payment patterns, current and expected conditions and market trends along with our operating forecasts, concentration, and creditworthiness when evaluating the adequacy of our allowance for credit losses. In addition, with respect to our check warranty receivables, we are exposed to risk for the losses associated with warranted items that cannot be collected from patrons issuing these items. We evaluate the collectability of the outstanding balances and establish a reserve for the face amount of the current expected credit losses related to these receivables. The provision for doubtful accounts receivable is included within operating expenses and the check warranty loss reserves are included within financial access services cost of revenues in the Statements of Operations.
Goodwill
Goodwill
Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. We test for impairment annually on a reporting unit basis, at the beginning of our fourth fiscal quarter and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The annual impairment test is completed using either: a qualitative “Step 0” assessment based on reviewing relevant events and circumstances; or a quantitative “Step 1” assessment, which determines the fair value of the reporting unit, using both an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether or not any impairment exists. To the extent the carrying amount of a reporting unit is less than its estimated fair value, an impairment charge is recorded.
The evaluation of impairment of goodwill requires the use of estimates about future operating results. Changes in forecasted operations can materially affect these estimates, which could materially affect our results of operations and financial condition. The estimates of expected future cash flows require significant judgment and are based on assumptions we determined to be reasonable; however, they are unpredictable and inherently uncertain, including, estimates of future growth rates, operating margins and assumptions about the overall economic climate as well as the competitive environment within which we operate. There can be no assurance that our estimates and assumptions made for purposes of our impairment assessments as of the time of evaluation will prove to be accurate predictions of the future. If our assumptions regarding business plans, competitive environments, or anticipated growth rates are not correct, we may be required to record non-cash impairment charges in future periods, whether in connection with our normal review procedures periodically, or earlier, if an indicator of an impairment is present prior to such evaluation.Our reporting units are identified as operating segments or one level below. Reporting units must: (i) engage in business activities from which they earn revenues and incur expenses; (ii) have operating results that are regularly reviewed by our segment management to ascertain the resources to be allocated to the segment and assess its performance; and (iii) have discrete financial information available.
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 using appropriate interest rates.
Recent Accounting Guidance
Recent Accounting Guidance
Recently Adopted Accounting Guidance
StandardDescriptionDate of AdoptionEffect on Financial Statements
Accounting Standard Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
This ASU simplifies the accounting for income taxes by removing certain exceptions for investments, intraperiod allocations, and interim calculations, and adds guidance to reduce the complexity of applying Topic 740.January 1, 2021The adoption of this ASU did not have a material effect on our Financial Statements or on our disclosures.
Recent Accounting Guidance Not Yet Adopted
As of June 30, 2021, we did not identify recently issued accounting guidance that would have a significant impact on our consolidated financial statements.
v3.21.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Jun. 30, 2021
Accounting Policies [Abstract]  
Contract Asset and Liability
The following table summarizes our contract assets and contract liabilities arising from contracts with customers (in thousands):
Six Months Ended June 30,
20212020
Contract assets(1)
Balance at January 1 — current$9,240 $8,634 
Balance at January 1 — non-current8,321 6,774 
Total
17,561 15,408 
Balance at June 30 - current9,994 8,392 
Balance at June 30 - non-current7,252 7,754 
Total
17,246 16,146 
(Decrease)/increase
$(315)$738 
Contract liabilities(2)
Balance at January 1 — current$26,980 $28,510 
Balance at January 1 — non-current289 354 
Total
27,269 28,864 
Balance at June 30 - current30,694 39,318 
Balance at June 30 - non-current466 103 
Total
31,160 39,421 
Increase
$3,891 $10,557 
(1)  The current portion of contract assets is included within trade and other receivables, net, and the non-current portion is included within other receivables in our Balance Sheets.
(2)  The current portion of contract liabilities is included within accounts payable and accrued expenses, and the non-current portion is included within other accrued expenses and liabilities in our Balance Sheets.
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, 2021 (in thousands).
Classification on our Balance Sheets
At June 30, 2021At December 31, 2020
Cash and cash equivalentsCash and cash equivalents$340,361 $251,706 
Restricted cash - currentPrepaid expenses and other current assets848 542 
Restricted cash - non-currentOther assets101 101 
Total
$341,310 $252,349 
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, 2021 (in thousands).
Classification on our Balance Sheets
At June 30, 2021At December 31, 2020
Cash and cash equivalentsCash and cash equivalents$340,361 $251,706 
Restricted cash - currentPrepaid expenses and other current assets848 542 
Restricted cash - non-currentOther assets101 101 
Total
$341,310 $252,349 
Estimated Fair Value and Outstanding Balances of Borrowings The estimated fair value and outstanding balances of our borrowings are as follows (dollars in thousands):
 Level of HierarchyFair ValueOutstanding Balance
June 30, 2021   
Term loan2$734,728 $735,500 
Incremental term loan2$129,319 $123,750 
Senior unsecured notes2$296,454 $285,381 
December 31, 2020   
Term loan2$729,138 $735,500 
Incremental term loan2$129,972 $124,375 
Senior unsecured notes2$296,083 $285,381 
Summary of Recent Accounting Guidance
Recently Adopted Accounting Guidance
StandardDescriptionDate of AdoptionEffect on Financial Statements
Accounting Standard Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
This ASU simplifies the accounting for income taxes by removing certain exceptions for investments, intraperiod allocations, and interim calculations, and adds guidance to reduce the complexity of applying Topic 740.January 1, 2021The adoption of this ASU did not have a material effect on our Financial Statements or on our disclosures.
v3.21.2
LEASES (Tables)
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Balance Sheet Information
Supplemental balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2021At December 31, 2020
Assets
Operating lease ROU assetsOther assets, non-current$14,369 $16,104 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$5,410 $5,649 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$14,160 $16,077 
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,
2021202020212020
Cash paid for:
Long-term operating leases$1,745 $1,983 $3,370 $3,281 
Short-term operating leases$389 $479 $819 $969 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases(1)
$667 $156 $667 $860 
(1) The amounts are presented net of current year terminations and exclude amortization for the period.
Lease Costs
Other information related to lease terms and discount rates is as follows:
At June 30, 2021At December 31, 2020
Weighted Average Remaining Lease Term (in years):
Operating leases3.894.16
Weighted Average Discount Rate:
Operating leases5.13 %5.16 %
Components of lease expense, which are included in operating expenses, are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Operating Lease Cost:
Operating lease cost (1)
$1,456 $1,365 $2,916 $2,737 
Variable lease cost $385 $468 $635 $912 
(1) The amount includes approximately $1.2 million and $2.4 million in non-cash lease expense for the three and six months ended June 30, 2021, respectively, and $1.1 million and $2.2 million for the three and six months ended June 30, 2020, respectively.
Payments Due
Maturities of lease liabilities are summarized as follows as of June 30, 2021 (in thousands):
Year Ending December 31, Amount
2021 (excluding the six months ended June 30, 2021)
$3,184 
20226,160 
20234,780 
20243,548 
20252,889 
Thereafter1,044 
Total future minimum lease payments 21,605 
Amount representing interest 2,035 
Present value of future minimum lease payments19,570 
Current operating lease obligations5,410 
Long-term lease obligations$14,160 
Sales-type Lease
Supplemental balance sheet information related to our sales-type leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2021At December 31, 2020
Assets
Net investment in sales-type leases — currentTrade and other receivables, net$1,352 $1,397 
Net investment in sales-type leases — non-currentOther receivables$372 $803 
v3.21.2
TRADE AND OTHER RECEIVABLES (Tables)
 6 Months Ended
Jun. 30, 2021
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,
20212020
Trade and other receivables, net  
Games trade and loans receivables$68,384 $44,794 
FinTech trade and loans receivables
19,782 14,683 
Contract assets(1)
17,246 17,561 
Net investment in sales-type leases
1,724 2,200 
Insurance settlement receivable(2)
— 7,650 
Other receivables
2,051 1,923 
Total trade and other receivables, net109,187 88,811 
Non-current portion of receivables  
Games trade and loans receivables(1,428)(1,333)
FinTech trade and loans receivables
(4,430)(4,163)
Contract assets(1)
(7,252)(8,321)
Net investment in sales-type leases
(372)(803)
Total non-current portion of receivables(13,482)(14,620)
Total trade and other receivables, current portion$95,705 $74,191 
(2) Refer to “Note 13 — Commitments and Contingencies” for a discussion on the insurance settlement receivable.
Activity in Allowance for Credit Losses
The activity in our allowance for credit losses for the six months ended June 30, 2021 and 2020 is as follows (in thousands):
Six Months Ended June 30,
20212020
Beginning allowance for credit losses$(3,689)$(5,786)
Provision(3,806)(4,981)
Charge-offs and recoveries2,705 8,162 
Ending allowance for credit losses$(4,790)$(2,605)
v3.21.2
INVENTORY (Tables)
 6 Months Ended
Jun. 30, 2021
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
Inventory consisted of the following (in thousands): 
 At June 30,At December 31,
 20212020
Inventory  
Component parts, net of reserves of $1,981 and $1,262 at June 30, 2021 and December 31, 2020, respectively
$22,686 $21,560 
Work-in-progress
1,383 182 
Finished goods
7,304 6,000 
Total inventory
$31,373 $27,742 
v3.21.2
PREPAID EXPENSES AND OTHER ASSETS (Tables)
 6 Months Ended
Jun. 30, 2021
Prepaid Expense and Other Assets [Abstract]  
Schedule of Components of Current Portion of Prepaid and Other Assets
The balance of the current portion of prepaid expenses and other assets consisted of the following (in thousands):
 At June 30,At December 31,
 20212020
Prepaid expenses and other current assets  
Prepaid expenses
$16,447 $11,282 
Deposits
5,933 4,133 
Restricted cash(1)
848 542 
Other
1,676 1,391 
Total prepaid expenses and other current assets$24,904 $17,348 
(1) Refer to “Note 2 — Basis of Presentation and Summary of Significant Accounting Policies” for discussion on the composition of the restricted cash balance.
Schedule of Components of Non-Current Portion of Prepaid and Other Assets
The balance of the non-current portion of other assets consisted of the following (in thousands): 
 At June 30,At December 31,
 20212020
Other assets  
Operating lease ROU assets
$14,369 $16,104 
Prepaid expenses and deposits
4,160 4,952 
Debt issuance costs of revolving credit facility
173 267 
Other
545 673 
Total other assets
$19,247 $21,996 
v3.21.2
PROPERTY AND EQUIPMENT (Tables)
 6 Months Ended
Jun. 30, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Components of Property, Equipment and Leased Assets
Property and equipment consist of the following (dollars in thousands): 
  At June 30, 2021At December 31, 2020
Useful Life
(Years)		CostAccumulated
Depreciation		Net Book
Value		CostAccumulated
Depreciation		Net Book
Value
Property and equipment       
Rental pool - deployed
2-4
$228,739 $150,446 $78,293 $216,775 $136,975 $79,800 
Rental pool - undeployed
2-4
21,969 17,961 4,008 21,974 16,680 5,294 
FinTech equipment
1-5
32,757 20,925 11,832 33,349 21,947 11,402 
Leasehold and building improvementsLease Term12,417 8,548 3,869 11,352 8,557 2,795 
Machinery, office, and other equipment
1-5
40,190 24,936 15,254 45,085 32,053 13,032 
Total property and equipment $336,072 $222,816 $113,256 $328,535 $216,212 $112,323 
v3.21.2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
 6 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Other Intangible Assets
Other intangible assets consist of the following (dollars in thousands): 
  At June 30, 2021At December 31, 2020
Useful Life
(Years)		CostAccumulated
Amortization		Net Book
Value		CostAccumulated
Amortization		Net Book
Value
Other intangible assets       
Contract rights under placement fee agreements
3-7
$60,561 $32,744 $27,817 $60,561 $28,108 $32,453 
Customer contracts
3-14
71,975 56,716 15,259 71,975 54,407 17,568 
Customer relationships
3-7
231,100 137,032 94,068 231,100 126,549 104,551 
Developed technology and software
1-6
325,741 268,883 56,858 313,957 255,771 58,186 
Patents, trademarks and other
2-18
19,682 18,600 1,082 19,682 17,813 1,869 
Total other intangible assets$709,059 $513,975 $195,084 $697,275 $482,648 $214,627 
v3.21.2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)
 6 Months Ended
Jun. 30, 2021
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Accrued Expenses
The following table presents our accounts payable and accrued expenses (in thousands):
 At June 30,At December 31,
 20212020
Accounts payable and accrued expenses  
Vendor commissions payable$57,089 $39,028 
Contract liabilities
30,694 26,980 
Payroll and related expenses
22,932 13,357 
Trade accounts payable
20,395 15,503 
Operating lease liabilities
5,410 5,649 
Accrued taxes
2,610 1,329 
Financial access processing and related expenses2,505 1,109 
Accrued interest
1,063 1,068 
Contingent consideration and acquisition-related liabilities(1)
— 24,674 
Litigation accrual(2)
— 12,727 
Other4,088 3,605 
Total accounts payable and accrued expenses
$146,786 $145,029 
(2) Refer to “Note 13 — Commitments and Contingencies.”
v3.21.2
LONG-TERM DEBT (Tables)
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
Summary of Outstanding Indebtedness
The following table summarizes our outstanding indebtedness (dollars in thousands):
 MaturityInterestAt June 30,At December 31,
 DateRate20212020
Long-term debt  
$820 million Term Loan Facility
2024
LIBOR+2.75%
$735,500 $735,500 
$125 million Incremental Term Loan Facility
2024
LIBOR+10.50%
123,750 124,375 
$35 million Revolving Credit Facility
2022
LIBOR+4.50%
— — 
Senior Secured Credit Facilities
859,250 859,875 
$375 million 2017 Unsecured Notes
20257.50%285,381 285,381 
Total debt
1,144,631 1,145,256 
Debt issuance costs and discount(13,754)(16,003)
Total debt after debt issuance costs and discount
1,130,877 1,129,253 
Current portion of long-term debt(1,250)(1,250)
Total long-term debt, net of current portion$1,129,627 $1,128,003 
v3.21.2
WEIGHTED AVERAGE SHARES OF COMMON STOCK (Tables)
 6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
Schedule of Weighted Average Number of Common Shares Outstanding
The weighted average number of shares 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,
 2021202020212020
Weighted average shares  
Weighted average number of common shares outstanding - basic88,722 85,122 87,858 84,873 
Potential dilution from equity awards(1)
11,308 — 11,146 — 
Weighted average number of common shares outstanding - diluted(1)
100,030 85,122 99,004 84,873 
(1) The were no shares that were anti-dilutive under the treasury stock method for the three months ended June 30, 2021, and there were approximately 0.2 million shares of common stock that were anti-dilutive under the treasury stock method for the six months ended June 30, 2021. We were in a net loss position for the three and six months ended June 30, 2020; therefore, no potential dilution from the application of the treasury stock method was applicable for the period.
v3.21.2
SHARE-BASED COMPENSATION (Tables)
 6 Months Ended
Jun. 30, 2021
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, 202010,261 4,250 
Granted— 960 
Exercised options or vested shares(1,919)(1,390)
Canceled or forfeited(6)(41)
Outstanding, June 30, 20218,336 3,779 
v3.21.2
SEGMENT INFORMATION (Tables)
 6 Months Ended
Jun. 30, 2021
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,
 2021202020212020
Games  
Revenues  
Gaming operations$73,220 $13,859 $131,361 $59,545 
Gaming equipment and systems26,090 6,983 44,078 18,566 
Gaming other27 11 49 32 
Total revenues99,337 20,853 175,488 78,143 
Costs and expenses  
Cost of revenues(1)
  
Gaming operations5,342 1,681 10,101 6,226 
Gaming equipment and systems15,248 4,071 25,555 10,895 
Gaming other— 456 — 456 
Cost of revenues20,590 6,208 35,656 17,577 
Operating expenses17,565 22,714 32,160 37,519 
Research and development5,854 3,620 11,521 9,816 
Depreciation14,064 14,844 28,627 29,572 
Amortization10,675 15,315 21,659 30,900 
Total costs and expenses68,748 62,701 129,623 125,384 
Operating income (loss)$30,589 $(41,848)$45,865 $(47,241)
(1) Exclusive of depreciation and amortization.
* Rounding may cause variances.
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
FinTech  
Revenues  
Financial access services$44,840 $10,034 $83,552 $47,007 
Software and other15,604 4,424 32,850 17,118 
Hardware12,801 3,404 19,805 9,756 
Total revenues73,245 17,862 136,207 73,881 
Costs and expenses  
Cost of revenues(1)
  
Financial access services1,560 511 3,033 4,066 
Software and other1,129 324 2,133 1,198 
Hardware7,670 2,014 11,698 5,904 
Cost of revenues10,359 2,849 16,864 11,168 
Operating expenses30,613 18,889 54,061 42,981 
Research and development2,912 1,573 5,658 4,108 
Depreciation1,867 1,450 3,481 2,965 
Amortization3,694 3,980 7,425 7,719 
Total costs and expenses49,445 28,741 87,489 68,941 
Operating income (loss)$23,800 $(10,879)$48,718 $4,940 
(1)  Exclusive of depreciation and amortization.
* Rounding may cause variances.
 At June 30,At December 31,
 20212020
Total assets  
Games$829,699 $811,523 
FinTech735,816 665,656 
Total assets$1,565,515 $1,477,179 
v3.21.2
BUSINESS (Details)
 6 Months Ended
Jun. 30, 2021
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of business segments 2
v3.21.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Contract Asset and Liability (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Dec. 31, 2019
Contract assets        
Contract assets, current $ 9,994 $ 8,392 $ 9,240 $ 8,634
Contract assets, noncurrent 7,252 7,754 8,321 6,774
Total 17,246 16,146 17,561 15,408
(Decrease)/increase (315) 738    
Contract liabilities        
Contract liabilities, current 30,694 39,318 26,980 28,510
Contract liabilities, noncurrent 466 103 289 354
Total 31,160 39,421 $ 27,269 $ 28,864
Increase $ 3,891 $ 10,557    
v3.21.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Disaggregation of Revenue [Line Items]        
Contract with customer liability     $ 18,000 $ 17,000
Revenues $ 172,582 $ 38,715 $ 311,695 152,024
Contractual terms of trade and loans receivable     12 months  
Games        
Disaggregation of Revenue [Line Items]        
Revenues 99,337 20,853 $ 175,488 78,143
Games | Gaming operations, leased equipment        
Disaggregation of Revenue [Line Items]        
Revenues $ 51,700 $ 10,400 $ 92,500 $ 44,400
v3.21.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Dec. 31, 2019
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 340,361 $ 251,706    
Restricted cash - current 848 542    
Total 341,310 252,349 $ 257,822 $ 296,610
Cash and cash equivalents        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents 340,361 251,706    
Prepaid expenses and other current assets        
Cash and Cash Equivalents [Line Items]        
Restricted cash - current 848 542    
Other assets        
Cash and Cash Equivalents [Line Items]        
Restricted cash - non-current $ 101 $ 101    
v3.21.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Fair Value and Outstanding Balances of Borrowings (Details) - Level 2 - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Fair Value | Term loan    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt $ 734,728 $ 729,138
Fair Value | Incremental term loan    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 129,319 129,972
Fair Value | Senior Unsecured Debt    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 296,454 296,083
Outstanding Balance | Term loan    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 735,500 735,500
Outstanding Balance | Incremental term loan    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 123,750 124,375
Outstanding Balance | Senior Unsecured Debt    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt $ 285,381 $ 285,381
v3.21.2
LEASES - Narrative (Details) - USD ($)
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Lessee, Lease, Description [Line Items]    
Sales-type lease, revenue $ 0 $ 0
Minimum    
Lessee, Lease, Description [Line Items]    
Renewal term 1 year  
Maximum    
Lessee, Lease, Description [Line Items]    
Renewal term 10 years  
v3.21.2
LEASES - Balance Sheet Information (Details) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Leases [Abstract]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Other assets Other assets
Operating lease ROU assets $ 14,369 $ 16,104
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accounts payable and accrued expenses Accounts payable and accrued expenses
Current operating lease liabilities $ 5,410 $ 5,649
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilitiesNoncurrent us-gaap:OtherLiabilitiesNoncurrent
Non-current operating lease liabilities $ 14,160 $ 16,077
v3.21.2
LEASES - Cash Flow Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Cash paid for:        
Long-term operating leases $ 1,745 $ 1,983 $ 3,370 $ 3,281
Short-term operating leases 389 479 819 969
Right-of-use assets obtained in exchange for lease obligations:        
Operating leases $ 667 $ 156 $ 667 $ 860
v3.21.2
LEASES - Lease Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Weighted Average Remaining Lease Term (in years):          
Operating leases 3 years 10 months 20 days   3 years 10 months 20 days   4 years 1 month 28 days
Weighted Average Discount Rate:          
Operating leases 5.13%   5.13%   5.16%
Operating Lease Cost:          
Operating lease cost $ 1,456 $ 1,365 $ 2,916 $ 2,737  
Variable lease cost 385 468 635 912  
Non-cash lease expense $ 1,200 $ 1,100 $ 2,399 $ 2,195  
v3.21.2
LEASES - Payments Due (Details) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Amount    
2021 (excluding the six months ended June 30, 2021) $ 3,184  
2022 6,160  
2023 4,780  
2024 3,548  
2025 2,889  
Thereafter 1,044  
Total future minimum lease payments 21,605  
Amount representing interest 2,035  
Present value of future minimum lease payments 19,570  
Current operating lease liabilities 5,410 $ 5,649
Long-term lease obligations $ 14,160 $ 16,077
v3.21.2
LEASES - Sales-type Lease (Details) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Leases [Abstract]    
Net investment in sales-type leases — current $ 1,352 $ 1,397
Net investment in sales-type leases — non-current $ 372 $ 803
v3.21.2
BUSINESS COMBINATIONS (Details) - USD ($)
$ in Millions
 6 Months Ended
Dec. 24, 2021
Jul. 01, 2021
Jul. 01, 2020
Apr. 01, 2020
Mar. 08, 2020
Dec. 24, 2019
Mar. 08, 2019
Jun. 30, 2021
Dec. 31, 2020
Business Acquisition [Line Items]                  
Revenue target achievement               2 years  
Atrient                  
Business Acquisition [Line Items]                  
Contingent consideration liability             $ 9.9   $ 9.9
Atrient | FinTech Segment                  
Business Acquisition [Line Items]                  
Payments to acquire businesses         $ 10.0   $ 20.0 $ 10.0  
Micro Gaming Technologies, Inc. | FinTech Segment                  
Business Acquisition [Line Items]                  
Payments to acquire businesses     $ 5.0 $ 5.0   $ 15.0      
Total consideration transferred           $ 25.0      
Micro Gaming Technologies, Inc. | FinTech Segment | Forecast                  
Business Acquisition [Line Items]                  
Payments to acquire businesses $ 5.0 $ 5.0              
v3.21.2
FUNDING AGREEMENTS (Details) - Indemnification Guarantee - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Contract Cash Solutions Agreement          
Funding Agreements          
Cash usage fees incurred $ 900,000 $ 200,000 $ 1,600,000 $ 1,700,000  
Outstanding balance 439,100,000   439,100,000   $ 340,300,000
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    
v3.21.2
TRADE AND OTHER RECEIVABLES - Schedule of Components of Trade and Other Receivables (Details) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Trade and other receivables, net    
Contract assets $ 17,246 $ 17,561
Net investment in sales-type leases 1,724 2,200
Insurance settlement receivable 0 7,650
Other receivables 2,051 1,923
Total trade and other receivables, net 109,187 88,811
Non-current portion of receivables (13,482) (14,620)
Contract assets (7,252) (8,321)
Net investment in sales-type leases (372) (803)
Total trade and other receivables, current portion 95,705 74,191
Gaming operations    
Trade and other receivables, net    
Trade receivables, net 68,384 44,794
Non-current portion of receivables (1,428) (1,333)
FinTech    
Trade and other receivables, net    
Trade receivables, net 19,782 14,683
Non-current portion of receivables $ (4,430) $ (4,163)
v3.21.2
TRADE AND OTHER RECEIVABLES - Activity in Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning allowance for credit losses $ (3,689) $ (5,786)
Provision (3,806) (4,981)
Charge-offs and recoveries 2,705 8,162
Ending allowance for credit losses $ (4,790) $ (2,605)
v3.21.2
INVENTORY (Details) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Inventory    
Component parts, reserves $ 1,981 $ 1,262
Component parts, net of reserves of $1,981 and $1,262 at June 30, 2021 and December 31, 2020, respectively 22,686 21,560
Work-in-progress 1,383 182
Finished goods 7,304 6,000
Total inventory $ 31,373 $ 27,742
v3.21.2
PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Prepaid expenses and other current assets    
Prepaid expenses $ 16,447 $ 11,282
Deposits 5,933 4,133
Restricted cash 848 542
Other 1,676 1,391
Total prepaid expenses and other current assets 24,904 17,348
Other assets    
Operating lease ROU assets 14,369 16,104
Prepaid expenses and deposits 4,160 4,952
Debt issuance costs of revolving credit facility 173 267
Other 545 673
Total other assets $ 19,247 $ 21,996
v3.21.2
PROPERTY AND EQUIPMENT - Schedule of Components of Property, Equipment and Leased Assets (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Cost $ 336,072 $ 328,535
Accumulated Depreciation 222,816 216,212
Net Book Value 113,256 112,323
Rental pool - deployed    
Property, Plant and Equipment [Line Items]    
Cost 228,739 216,775
Accumulated Depreciation 150,446 136,975
Net Book Value $ 78,293 79,800
Rental pool - deployed | Minimum    
Property, Plant and Equipment [Line Items]    
Useful Life 2 years  
Rental pool - deployed | Maximum    
Property, Plant and Equipment [Line Items]    
Useful Life 4 years  
Rental pool - undeployed    
Property, Plant and Equipment [Line Items]    
Cost $ 21,969 21,974
Accumulated Depreciation 17,961 16,680
Net Book Value $ 4,008 5,294
Rental pool - undeployed | Minimum    
Property, Plant and Equipment [Line Items]    
Useful Life 2 years  
Rental pool - undeployed | Maximum    
Property, Plant and Equipment [Line Items]    
Useful Life 4 years  
Machinery, office, and other equipment    
Property, Plant and Equipment [Line Items]    
Cost $ 40,190 45,085
Accumulated Depreciation 24,936 32,053
Net Book Value 15,254 13,032
Machinery, office, and other equipment | FinTech    
Property, Plant and Equipment [Line Items]    
Cost 32,757 33,349
Accumulated Depreciation 20,925 21,947
Net Book Value $ 11,832 11,402
Machinery, office, and other equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Useful Life 1 year  
Machinery, office, and other equipment | Minimum | FinTech    
Property, Plant and Equipment [Line Items]    
Useful Life 1 year  
Machinery, office, and other equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Useful Life 5 years  
Machinery, office, and other equipment | Maximum | FinTech    
Property, Plant and Equipment [Line Items]    
Useful Life 5 years  
Leasehold and building improvements    
Property, Plant and Equipment [Line Items]    
Cost $ 12,417 11,352
Accumulated Depreciation 8,548 8,557
Net Book Value $ 3,869 $ 2,795
v3.21.2
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Property, Plant and Equipment [Abstract]        
Depreciation $ 15,931 $ 16,294 $ 32,108 $ 32,537
v3.21.2
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]          
Goodwill $ 681,992,000   $ 681,992,000   $ 681,974,000
Impairment of goodwill 0 $ 0 0 $ 0  
Amortization of intangible assets 14,400,000 19,300,000 29,100,000 38,600,000  
Placement fee 0 300,000 0 900,000  
Impairment of intangible assets $ 0 5,900,000 $ 0 5,900,000  
Games          
Finite-Lived Intangible Assets [Line Items]          
Impairment of intangible assets   5,500,000   5,500,000  
FinTech          
Finite-Lived Intangible Assets [Line Items]          
Impairment of intangible assets   $ 400,000   $ 400,000  
v3.21.2
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Other Intangible Assets (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Cost $ 709,059 $ 697,275
Accumulated Amortization 513,975 482,648
Net Book Value 195,084 214,627
Contract rights under placement fee agreements    
Finite-Lived Intangible Assets [Line Items]    
Cost 60,561 60,561
Accumulated Amortization 32,744 28,108
Net Book Value $ 27,817 32,453
Contract rights under placement fee agreements | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life 3 years  
Contract rights under placement fee agreements | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life 7 years  
Customer contracts    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 71,975 71,975
Accumulated Amortization 56,716 54,407
Net Book Value $ 15,259 17,568
Customer contracts | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life 3 years  
Customer contracts | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life 14 years  
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 231,100 231,100
Accumulated Amortization 137,032 126,549
Net Book Value $ 94,068 104,551
Customer relationships | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life 3 years  
Customer relationships | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life 7 years  
Developed technology and software    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 325,741 313,957
Accumulated Amortization 268,883 255,771
Net Book Value $ 56,858 58,186
Developed technology and software | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life 1 year  
Developed technology and software | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life 6 years  
Patents, trademarks and other    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 19,682 19,682
Accumulated Amortization 18,600 17,813
Net Book Value $ 1,082 $ 1,869
Patents, trademarks and other | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life 2 years  
Patents, trademarks and other | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life 18 years  
v3.21.2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Dec. 31, 2019
Accounts payable and accrued expenses        
Vendor commissions payable $ 57,089 $ 39,028    
Contract liabilities 30,694 26,980 $ 39,318 $ 28,510
Payroll and related expenses 22,932 13,357    
Trade accounts payable 20,395 15,503    
Operating lease liabilities 5,410 5,649    
Accrued taxes 2,610 1,329    
Financial access processing and related expenses 2,505 1,109    
Accrued interest 1,063 1,068    
Contingent consideration and acquisition-related liabilities 0 24,674    
Litigation accrual 0 12,727    
Other 4,088 3,605    
Total accounts payable and accrued expenses $ 146,786 $ 145,029    
v3.21.2
LONG-TERM DEBT - Summary of Outstanding Indebtedness (Details) - USD ($)
 6 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Apr. 21, 2020
Dec. 31, 2018
Dec. 31, 2017
May 09, 2017
Debt Instrument [Line Items]            
Total debt $ 1,144,631,000 $ 1,145,256,000        
Debt issuance costs and discount (13,754,000) (16,003,000)        
Total debt after debt issuance costs and discount 1,130,877,000 1,129,253,000        
Current portion of long-term debt (1,250,000) (1,250,000)        
Total long-term debt, net of current portion $ 1,129,627,000 1,128,003,000        
Senior Secured Term Loan Facility | New Credit Agreement, dated May 9, 2017            
Debt Instrument [Line Items]            
Principal amount of debt           $ 820,000,000
Senior Secured Term Loan Facility | New Credit Agreement, dated May 9, 2017 | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Basis spread 2.75%          
Incremental term loan | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty            
Debt Instrument [Line Items]            
Total debt $ 123,750,000 124,375,000        
Principal amount of debt     $ 125,000,000      
Incremental term loan | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Basis spread 10.50%          
Revolving Credit Facility | New Credit Agreement, dated May 9, 2017            
Debt Instrument [Line Items]            
Total debt $ 0 0        
Principal amount of debt           $ 35,000,000.0
Revolving Credit Facility | New Credit Agreement, dated May 9, 2017 | London Interbank Offered Rate (LIBOR)            
Debt Instrument [Line Items]            
Basis spread 4.50%          
Senior Secured Term Loan            
Debt Instrument [Line Items]            
Total debt $ 735,500,000 735,500,000        
Senior secured notes            
Debt Instrument [Line Items]            
Total debt 859,250,000 859,875,000        
Senior Unsecured Debt            
Debt Instrument [Line Items]            
Total debt $ 285,381,000 $ 285,381,000        
Senior Unsecured Debt | 2017 Unsecured Notes            
Debt Instrument [Line Items]            
Principal amount of debt       $ 375,000,000 $ 375,000,000.0  
Interest rate 7.50%       7.50%  
v3.21.2
LONG-TERM DEBT - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Feb. 02, 2021
Apr. 21, 2020
May 09, 2017
Jun. 30, 2021
Jun. 30, 2021
Feb. 01, 2021
Dec. 31, 2020
Dec. 31, 2018
Dec. 31, 2017
Debt Instrument [Line Items]                  
Total debt       $ 1,144,631,000 $ 1,144,631,000   $ 1,145,256,000    
Senior secured notes                  
Debt Instrument [Line Items]                  
Total debt       859,250,000 859,250,000   859,875,000    
Senior Secured Term Loan                  
Debt Instrument [Line Items]                  
Total debt       735,500,000 735,500,000   735,500,000    
Senior Unsecured Debt                  
Debt Instrument [Line Items]                  
Total debt       $ 285,381,000 $ 285,381,000   285,381,000    
Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | Sagard Credit Partners, LP | Common Stock                  
Debt Instrument [Line Items]                  
Number of shares called by warrants (in shares)   184,670              
Exercise price per share (in dollars per share)   $ 5.37              
Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | Sagard Credit Partners (Cayman), LP | Common Stock                  
Debt Instrument [Line Items]                  
Number of shares called by warrants (in shares)   40,330              
Exercise price per share (in dollars per share)   $ 5.37              
Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | Senior secured notes                  
Debt Instrument [Line Items]                  
Debt term   7 years              
Credit Agreement Dated February Second Two Thousand Twenty One | Federal Funds Effective Swap Rate                  
Debt Instrument [Line Items]                  
Basis spread 0.25%                
Credit Agreement Dated February Second Two Thousand Twenty One | London Interbank Offered Rate (LIBOR)                  
Debt Instrument [Line Items]                  
Basis spread 2.75%                
Floor interest rate 0.75%         1.00%      
Credit Agreement Dated February Second Two Thousand Twenty One | Base Rate                  
Debt Instrument [Line Items]                  
Basis spread 1.75%                
Floor interest rate 1.75%         2.00%      
Credit Agreement Dated February Second Two Thousand Twenty One | Senior Secured Term Loan                  
Debt Instrument [Line Items]                  
Percentage of prepayment premium of principal amount of term loan 1.00%                
Period after closing date prepayment is subject to a prepayment premium 6 months                
2017 Unsecured Notes | Senior Unsecured Debt                  
Debt Instrument [Line Items]                  
Principal amount of debt               $ 375,000,000 $ 375,000,000.0
Interest rate       7.50% 7.50%       7.50%
Senior Secured Term Loan Facility | New Credit Agreement, dated May 9, 2017                  
Debt Instrument [Line Items]                  
Principal amount of debt     $ 820,000,000            
Debt term     7 years            
Weighted average interest rate during period       3.50% 3.54%        
Senior Secured Term Loan Facility | New Credit Agreement, dated May 9, 2017 | London Interbank Offered Rate (LIBOR)                  
Debt Instrument [Line Items]                  
Basis spread         2.75%        
Senior Secured Term Loan Facility | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty                  
Debt Instrument [Line Items]                  
Voluntary prepayments period subject to make-whole premium   2 years              
Period after second anniversary subject to premium   6 months              
Prepayment penalty   1.00%              
Incremental term loan | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty                  
Debt Instrument [Line Items]                  
Principal amount of debt   $ 125,000,000              
Weighted average interest rate during period       11.50% 11.50%        
Total debt       $ 123,750,000 $ 123,750,000   124,375,000    
Incremental term loan | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | London Interbank Offered Rate (LIBOR)                  
Debt Instrument [Line Items]                  
Basis spread         10.50%        
Revolving Credit Facility | New Credit Agreement, dated May 9, 2017                  
Debt Instrument [Line Items]                  
Principal amount of debt     $ 35,000,000.0            
Debt term     5 years            
Total debt       $ 0 $ 0   $ 0    
Revolving Credit Facility | New Credit Agreement, dated May 9, 2017 | London Interbank Offered Rate (LIBOR)                  
Debt Instrument [Line Items]                  
Basis spread         4.50%        
Eurodollar Borrowings | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | Eurodollar                  
Debt Instrument [Line Items]                  
Basis spread   10.50%              
Base Rate Borrowings | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | Base Rate                  
Debt Instrument [Line Items]                  
Basis spread   9.50%              
v3.21.2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Dec. 31, 2019
Mar. 31, 2021
Jun. 30, 2021
Gain Contingencies [Line Items]      
Litigation expense $ 14.0    
Expected recovery     $ 7.7
Insurance Settlement      
Gain Contingencies [Line Items]      
Litigation expense   $ 4.4  
Proceeds from insurance settlement, operating   1.9  
Proceeds from insurance settlement   $ 9.6  
Recovery of direct costs $ 6.3    
v3.21.2
STOCKHOLDERS' EQUITY (Details)
Feb. 28, 2020
USD ($)
February Twenty Twenty Stock Repurchase Program  
Class of Stock [Line Items]  
Stock repurchase program, authorized amount $ 10,000,000.0
v3.21.2
WEIGHTED AVERAGE SHARES OF COMMON STOCK (Details) - shares
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Weighted average shares        
Weighted average number of common shares outstanding - basic (in shares) 88,722,000 85,122,000 87,858,000 84,873,000
Potential dilution from equity awards (in shares) 11,308,000 0 11,146,000 0
Weighted average number of common shares outstanding - diluted (in shares) 100,030,000 85,122,000 99,004,000 84,873,000
Anti-dilutive equity awards excluded from computation of earnings per share (in shares) 0 0 200,000 0
v3.21.2
SHARE-BASED COMPENSATION - Summary of Award Activity (Details)
shares in Thousands
 6 Months Ended
Jun. 30, 2021
shares
Stock Options  
Stock Options  
Outstanding balance at beginning of period (in shares) 10,261
Granted (in shares) 0
Exercised options or vested (in shares) (1,919)
Canceled or forfeited (in shares) (6)
Outstanding balance at end of period (in shares) 8,336
Restricted Stock Units  
Restricted Stock Units  
Outstanding balance at beginning of period (in shares) 4,250
Granted (in shares) 960
Exercised options or vested (in shares) (1,390)
Canceled or forfeited (in shares) (41)
Outstanding balance at end of period (in shares) 3,779
v3.21.2
SHARE-BASED COMPENSATION - Narrative (Details)
shares in Millions
Jun. 30, 2021
shares
Common Stock  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares available for grant (in shares) 5.0
v3.21.2
INCOME TAXES (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Income Tax Disclosure [Abstract]        
Effective income tax rate 1.10% 5.70% 2.70% 5.90%
Statutory federal rate     21.00% 21.00%
Unrecognized tax benefits $ 1.7   $ 1.7  
v3.21.2
SEGMENT INFORMATION - Schedule of Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Revenues          
Revenues $ 172,582 $ 38,715 $ 311,695 $ 152,024  
Costs and expenses          
Operating expenses 48,178 41,603 86,221 80,501  
Research and development 8,766 5,193 17,179 13,924  
Depreciation 15,931 16,294 32,108 32,537  
Amortization 14,369 19,295 29,084 38,619  
Total costs and expenses 118,193 91,442 217,112 194,326  
Operating income (loss) 54,389 (52,727) 94,583 (42,302)  
Total assets          
Total assets 1,565,515   1,565,515   $ 1,477,179
Games          
Revenues          
Revenues 99,337 20,853 175,488 78,143  
Costs and expenses          
Cost of revenues [1] 20,590 6,208 35,656 17,577  
Operating expenses 17,565 22,714 32,160 37,519  
Research and development 5,854 3,620 11,521 9,816  
Depreciation 14,064 14,844 28,627 29,572  
Amortization 10,675 15,315 21,659 30,900  
Total costs and expenses 68,748 62,701 129,623 125,384  
Operating income (loss) 30,589 (41,848) 45,865 (47,241)  
Total assets          
Total assets 829,699   829,699   811,523
Games | Gaming operations          
Revenues          
Revenues 73,220 13,859 131,361 59,545  
Costs and expenses          
Cost of revenues [1] 5,342 1,681 10,101 6,226  
Games | Gaming equipment and systems          
Revenues          
Revenues 26,090 6,983 44,078 18,566  
Costs and expenses          
Cost of revenues [1] 15,248 4,071 25,555 10,895  
Games | Gaming other          
Revenues          
Revenues 27 11 49 32  
Costs and expenses          
Cost of revenues [1] 0 456 0 456  
FinTech          
Revenues          
Revenues 73,245 17,862 136,207 73,881  
Costs and expenses          
Cost of revenues [1] 10,359 2,849 16,864 11,168  
Operating expenses 30,613 18,889 54,061 42,981  
Research and development 2,912 1,573 5,658 4,108  
Depreciation 1,867 1,450 3,481 2,965  
Amortization 3,694 3,980 7,425 7,719  
Total costs and expenses 49,445 28,741 87,489 68,941  
Operating income (loss) 23,800 (10,879) 48,718 4,940  
Total assets          
Total assets 735,816   735,816   $ 665,656
FinTech | Financial access services          
Revenues          
Revenues 44,840 10,034 83,552 47,007  
Costs and expenses          
Cost of revenues [1] 1,560 511 3,033 4,066  
FinTech | Software and other          
Revenues          
Revenues 15,604 4,424 32,850 17,118  
Costs and expenses          
Cost of revenues [1] 1,129 324 2,133 1,198  
FinTech | Hardware          
Revenues          
Revenues 12,801 3,404 19,805 9,756  
Costs and expenses          
Cost of revenues [1] $ 7,670 $ 2,014 $ 11,698 $ 5,904  
[1] (1) Exclusive of depreciation and amortization.
v3.21.2
SEGMENT INFORMATION - Narrative (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Five largest customers | Customer risk | Revenue from Contract with Customer        
Revenue, Major Customer [Line Items]        
Concentration risk 17.00% 23.00% 17.00% 15.00%
v3.21.2
SUBSEQUENT EVENTS (Details) - Subsequent Event
Aug. 03, 2021
USD ($)
Jul. 15, 2021
USD ($)
Credit Agreement Dated August Third Two Thousand Twenty One | Senior Secured Term Loan Facility    
Subsequent Event [Line Items]    
Principal amount of debt $ 600,000,000  
Debt term 7 years  
Issuance of par, percentage 0.9975  
Credit Agreement Dated August Third Two Thousand Twenty One | Revolving Credit Facility    
Subsequent Event [Line Items]    
Principal amount of debt $ 125,000,000  
Debt term 5 years  
New Credit Facilities    
Subsequent Event [Line Items]    
Basis spread 1.50%  
New Credit Facilities | London Interbank Offered Rate (LIBOR)    
Subsequent Event [Line Items]    
Floor interest rate 0.50%  
New Credit Facilities | Base Rate    
Subsequent Event [Line Items]    
Basis spread 2.50%  
Senior Unsecured Debt | Senior Unsecured Notes Due 2029    
Subsequent Event [Line Items]    
Principal amount of debt   $ 400,000,000
Interest rate   5.00%