$ 118,682

$ 242,230

$ 229,683

$ 479,767

96,085

182,595

37,570

28,779

69,757

57,772

4,595

4,618

8,906

9,161

13,701

11,396

26,526

22,226

16,552

17,439

32,855

34,764

96,085

220,938

182,595

435,872

Interest expense, net of interest income

22,597

21,292

47,088

43,895

Other expenses

22,122

23,881

42,429

48,938

Loss on extinguishment of debt

166

14,615

166

14,615

Total other expenses

22,288

38,496

42,595

63,553

Income (loss) before income tax

309

(17,204)

4,493

(19,658)

Income tax (benefit) provision

(1,166)

1,853

(1,591)

2,907

Foreign currency translation

1,475

(19,057)

6,084

(22,565)

(1,058)

836

(735)

1,108

Comprehensive income (loss)

$ 417

$ (18,221)

$ 5,349

$ (21,457)

Earnings (loss) per share

Basic

$ 0.02

$ (0.29)

$ 0.09

$ (0.34)

Diluted

$ 0.02

$ (0.29)

$ 0.08

$ (0.34)

Weighted average common shares outstanding

Basic

69,203

66,350

68,946

66,221

Diluted

73,440

66,350

73,323

66,221

Games

Revenues

$ 65,948

$ 55,104

$ 126,165

$ 110,380

^[1]

16,815

13,239

31,738

25,683

16,210

10,588

28,217

21,197

4,595

4,618

8,906

9,161

12,112

9,697

23,252

18,728

13,907

14,241

27,392

28,098

63,639

52,383

119,505

102,867

Games | Gaming operations

2,309

2,721

6,660

7,513

Revenues

43,022

36,869

83,078

73,400

Games | Gaming equipment and systems

4,211

3,963

8,393

7,171

Revenues

22,278

17,557

42,431

36,281

12,045

8,740

22,786

17,976

Games | Gaming other

Revenues

648

678

656

699

559

536

559

536

FinTech

Revenues

52,734

187,126

103,518

369,387

^[1]

6,852

145,467

12,813

286,266

21,360

18,191

41,540

36,575

1,589

1,699

3,274

3,498

2,645

3,198

5,463

6,666

32,446

168,555

63,090

333,005

FinTech | Cash access services

20,288

18,571

40,428

36,382

Revenues

39,739

175,442

77,958

347,175

2,446

142,445

4,676

281,106

FinTech | Equipment

Revenues

4,765

3,697

9,183

5,997

FinTech | Information services and other

3,426

2,212

5,940

3,631

Revenues

8,230

7,987

16,377

16,215

Organization Consolidation And Presentation Of Financial Statements [Abstract]

$ 980

$ 810

$ 2,197

$ 1,529

[1]	Exclusive of depreciation and amortization.

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 110,164	$ 128,586
Settlement receivables	139,314	227,403
Trade and other receivables, net of allowances for doubtful accounts of $5,438 and $4,706 at June 30, 2018 and December 31, 2017, respectively	61,583	47,782
Inventory	23,527	23,967
Prepaid expenses and other assets	19,763	20,670
Total current assets	354,351	448,408
Non-current assets
Property, equipment and leased assets, net	123,348	113,519
Goodwill	640,560	640,589
Other intangible assets, net	306,647	324,311
Other receivables	8,673	2,638
Other assets	6,237	7,609
Total non-current assets	1,085,465	1,088,666
Total assets	1,439,816	1,537,074
Current liabilities
Settlement liabilities	217,473	317,744
Accounts payable and accrued expenses	132,496	134,504
Current portion of long-term debt	8,200	8,200
Total current liabilities	358,169	460,448
Non-current liabilities
Deferred tax liability	36,297	38,207
Long-term debt, less current portion	1,157,397	1,159,643
Other accrued expenses and liabilities	8,227	19,409
Total non-current liabilities	1,201,921	1,217,259
Total liabilities	1,560,090	1,677,707
Commitments and contingencies (Note 13)
Stockholders’ deficit
Common stock, $0.001 par value, 500,000 shares authorized and 94,408 and 93,120 shares issued at June 30, 2018 and December 31, 2017, respectively	94	93
Convertible preferred stock, $0.001 par value, 50,000 shares authorized and no shares outstanding at June 30, 2018 and December 31, 2017, respectively
Additional paid-in capital	292,750	282,070
Accumulated deficit	(235,741)	(246,202)
Accumulated other comprehensive loss	(988)	(253)
Treasury stock, at cost, 24,889 and 24,883 shares at June 30, 2018 and December 31, 2017, respectively	(176,389)	(176,341)
Total stockholders’ deficit	(120,274)	(140,633)
Total liabilities and stockholders’ deficit	$ 1,439,816	$ 1,537,074

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Allowances for doubtful accounts	$ 5,438	$ 4,706
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	94,408,000	93,120,000
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	50,000,000	50,000,000
Convertible preferred stock, shares outstanding	0	0
Treasury stock, shares	24,889,000	24,883,000

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income (loss)	$ 6,084	$ (22,565)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization	59,381	56,990
Amortization of financing costs and discounts	3,061	3,186
Loss on sale or disposal of assets	215	1,399
Accretion of contract rights	4,178	3,909
Provision for bad debts	5,114	5,170
Deferred income taxes	(1,909)	2,565
Write-down of inventory and fixed assets	2,575
Reserve for obsolescence	1,053	266
Loss on extinguishment of debt	166	14,615
Stock-based compensation	4,305	3,480
Changes in operating assets and liabilities:
Settlement receivables	87,336	81,590
Trade and other receivables	(20,230)	5,283
Inventory	(2,359)	(2,890)
Prepaid and other assets	1,977	(1,957)
Settlement liabilities	(99,859)	(93,479)
Accounts payable and accrued expenses	(1,857)	16,530
Net cash provided by operating activities	49,231	74,092
Cash flows from investing activities
Capital expenditures	(57,936)	(43,696)
Proceeds from sale of fixed assets	79	2
Placement fee agreements	(10,117)	(3,044)
Net cash used in investing activities	(67,974)	(46,738)
Cash flows from financing activities
Proceeds from current credit facility		820,000
Repayments of prior credit facility		(465,600)
Repayments of secured notes		(335,000)
Repayments of credit facilities	(4,100)
Debt issuance costs and discounts	(1,276)	(19,663)
Proceeds from exercise of stock options	6,373	1,799
Purchase of treasury stock	(47)	(11)
Net cash provided by financing activities	950	1,525
Effect of exchange rates on cash	(620)	882
Cash, cash equivalents and restricted cash
Net (decrease) increase for the period	(18,413)	29,761
Balance, beginning of the period	129,604	119,438
Balance, end of the period	111,191	149,199
Supplemental cash disclosures
Cash paid for interest	42,844	29,485
Cash paid for income tax	223	669
Cash refunded for income tax	1	200
Supplemental non-cash disclosures
Accrued and unpaid capital expenditures	2,650	3,822
Transfer of leased gaming equipment to inventory	$ 4,519	$ 4,237

BUSINESS

6 Months Ended

Jun. 30, 2018

BUSINESS

1.

BUSINESS

Everi Holdings Inc. (“Everi Holdings”, “Holdings” or “Everi”) is a holding company, the assets of which are the issued and outstanding shares of capital stock of each of Everi Games Holding Inc. (“Everi Games Holding”), which owns all of the issued and outstanding shares of capital stock of Everi Games Inc. (“Everi Games” or “Games”) and Everi Payments Inc. (“Everi Payments” or “Payments”). Unless otherwise indicated, the terms the “Company,” “we,” “us” and “our” refer to Holdings together with its consolidated subsidiaries. Everi Holdings reports results of its operations based on the two operating segments: Games and Payments. Effective April 1, 2018, we changed the name of the operating segment previously referred to as “Payments” to “Financial Technology Solutions” (“Everi FinTech” or “FinTech”). We believe this reference more accurately reflects the focus of the business segment on delivering innovative and integrated solutions. Everi’s FinTech solutions provide actionable information to enhance the efficiency of the casino operator, support the comprehensive regulatory and tax requirements of their gaming customers and improve players’ gaming experience by providing easy access to their funds and payment of winnings.

Everi is a leading supplier of technology solutions for the casino gaming industry. We provide casino operators with a diverse portfolio of products including innovative gaming machines that power the casino floor, and casino operational and management systems that include comprehensive end-to-end payments solutions, critical intelligence offerings, and gaming operations efficiency technology.

Everi Games provides a number of products and services for casinos, including (a) gaming machines comprised primarily of Class II and Class III slot machines placed under participation or fixed fee lease arrangements or sold to casino customers, including the award-winning TournEvent®; and (b) system software, licenses, ancillary equipment and maintenance to its casino customers. Everi Games also develops and manages the central determinant system for the video lottery terminals installed in the State of New York.

Everi FinTech provides its casino customers cash access and related products and services including: (a) access to cash at gaming facilities via Automated Teller Machine (“ATM”) cash withdrawals, credit card cash access transactions, point of sale (“POS”) debit card transactions and check verification and warranty services; (b) equipment that provides cash access and efficiency related services; (c) products and services that improve credit decision making, automate cashier operations and enhance patron marketing activities for gaming establishments; (d) compliance, audit and data solutions; and (e) online payment processing solutions for gaming operators in states that offer intrastate, internet-based gaming and lottery activities.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.	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, 2018 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 our Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

Other than the adoption of ASU 2014-09 and all subsequent amendments (collectively, ASC 606) and Accounting Standards Update (“ASU”) No. 2016-18, there have been no changes to our basis of presentation and significant accounting policies since the most recent filing of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

Overall – Revenue Recognition

We evaluate the recognition of revenue based on the criteria set forth in ASC 606 and ASC 840, 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 in accordance with ASC 606. We enter into contracts with customers that may include various 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, in accordance with ASC 606.

We evaluate the composition of our revenues to ensure compliance with SEC Regulation S-X Section 210.5-03, which requires us to separately present certain categories of revenues that exceed the quantitative threshold on our Statements of Income (Loss).

Significant Judgments

ASC 606 requires that we apply judgments or estimates to determine the performance obligations and the Stand-Alone Selling Price (“SSP”) of each identified performance obligation. The establishment of SSP requires judgment as to whether there is a sufficient quantity of items sold or renewed on a stand-alone basis and those prices demonstrate an appropriate level of concentration to conclude that a SSP exists. The SSP of our goods and services are generally determined based on observable prices, an adjusted market assessment approach or an expected cost plus margin approach. We only utilize a residual approach when the SSP for performance obligations with observable prices have been established and the remaining performance obligation in the contract with a customer does not have an observable price as it is uncertain or highly variable and, therefore, is not discernable.

Collectability

To assess collectability, we determine whether it is probable that we will collect substantially all of the consideration to which we are entitled in exchange for the goods and services transferred to the customer in accordance with the terms and conditions of the contract. In connection with these procedures, we evaluate the customer using internal and external information available, including, but not limited to, research and analysis of the credit history with the customer. Based on the nature of our transactions and historical trends, we determine whether our customers have the ability and intention to pay the amounts of consideration when they become due to identify potentially significant credit risk exposure.

Contract Combinations - Multiple Promised Goods and Services

Our contracts may include promises to transfer multiple goods and services to a customer. Our Games and FinTech businesses may enter into multiple agreements with the same customer that meet the criteria to be combined for accounting purposes under ASC 606. When this occurs, a SSP will be determined for each performance obligation in the combined arrangement and the consideration allocated between the respective performance obligations. We use our judgment to analyze the nature of the promises made and determine whether each is distinct or should be combined with other promises in the contract based on the level of integration and interdependency between the individual deliverables.

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.”

Outbound Freight Costs

Upon transferring control of a good to a customer, the shipping and handling costs in connection with sale transactions are accounted for as fulfillment costs and included in cost of revenues.

Costs to Acquire a Contract with a Customer

We typically incur incremental costs to acquire customer contracts in the form of sales commission expenses. We evaluate those acquisition costs for groups of contracts with similar characteristics, based on the nature of the transactions. The incremental costs to acquire customer contracts identified would be amortized within one year and, as a result, we elected to utilize the practical expedient set forth in ASC 340-40, Contract Costs – Incremental Costs of Obtaining a Contract to expense these amounts as incurred.

Asset Balances

In connection with the adoption of ASC 606 utilizing the modified retrospective transition method, we recorded an immaterial cumulative adjustment with respect to certain amounts that had been previously deferred under the then existing revenue recognition guidance as of December 31, 2017 that required recognition under ASC 606 as of the effective date of adoption in accumulated deficit.

Games Revenues

Gaming Operations

Games revenues are primarily generated by our gaming operations under placement, participation and development arrangements in which we provide our customers with player terminals, player terminal-content licenses, central determinant systems for devices placed in service in licensed jurisdictions and back-office equipment, collectively referred to herein as leased gaming equipment. We evaluate the recognition of lease revenues based on criteria set forth in ASC 840. Generally, under these arrangements, we retain ownership of the leased gaming equipment installed at customer facilities and we receive revenues based on a percentage of the net win per day generated by the leased gaming equipment or a fixed daily fee based on the number of player terminals installed at the facility. Revenues from lease participation or daily fee arrangements are considered both realizable and earned at the end of each gaming day.

Gaming operations revenues generated by leased gaming equipment deployed at sites under development or placement fee agreements give rise to contract rights, which are amounts recorded to intangible assets for dedicated floor space resulting from such agreements. The gaming operations revenues generated by these arrangements are reduced by the accretion of contract rights, which represents the related amortization of the contract rights recorded in connection with those agreements.

Gaming operations revenues include revenues generated by Wide Area Progressive (“WAP”) systems, which consist of linked slot machines located in multiple casino properties that are connected to a central system. WAP-based gaming machines have a progressive jackpot we administer that increases with every wager until a player wins the top award combination. Casino operators pay us a percentage of the coin-in (the total amount wagered) for services related to the design, assembly, installation, operation, maintenance, administration and marketing of the WAP systems. The gaming operations revenues with respect to WAP-based gaming machines are presented in the Statements of Income (Loss) net of the jackpot expense, which is comprised of incremental amount funded by a portion of the coin-in from players. At such time a jackpot is won by a player, an additional jackpot expense is recorded with respect to the base seed amount required to fund the minimum level required by the respective WAP arrangement with the casino operator.

Gaming Equipment and Systems

Gaming equipment and systems revenues are derived from the sale of gaming equipment to our customers under contracts on standard credit terms, which are generally short-term in nature, and are recognized at a point in time when control of the promised goods and services transfers to the customer generally upon shipment or delivery pursuant to the terms of the contract.

Gaming Other

Gaming other revenues primarily consist of our TournEvent of Champions® national tournament and are recognized over a period of time as the customer simultaneously receives and consumes the benefits.

FinTech Revenues

Cash Access Services

Cash access services revenues are comprised of cash advance, ATM and check services revenue streams. We do not control the cash advance and ATM services provided to a customer and, therefore, we are acting as an agent whose performance obligation is to arrange for the provision of these services.

Cash advance revenues are comprised of transaction fees assessed to gaming patrons in connection with credit card cash access and POS debit card cash access transactions. Such fees are primarily based on a combination of a fixed amount plus a percentage of the face amount of the credit card cash access or POS debit card cash access transaction amount. In connection with these types of transactions, we report certain direct costs incurred as reductions to revenues on a net basis, which generally include: (i) commission expenses payable to casino operators; (ii) interchange fees payable to the network associations; and (iii) processing and related costs payable to other third party partners.

ATM revenues are primarily comprised of transaction fees in the form of cardholder surcharges assessed to gaming patrons in connection with ATM cash withdrawals at the time the transactions are authorized and reverse interchange fees paid to us by the patrons’ issuing banks. The cardholder surcharges assessed to gaming patrons in connection with ATM cash withdrawals are currently a fixed dollar amount and not a percentage of the transaction amount. In connection with these types of transactions, we report certain direct costs incurred as reductions to revenues on a net basis, which generally include: (i) commission expenses payable to casino operators; (ii) interchange fees payable to the network associations; and (iii) processing and related costs payable to other third party partners.

Check services revenues are principally comprised of check warranty revenues and are generally based upon a percentage of the face amount of checks warranted. These fees are paid to us by gaming establishments.

For cash access services arrangements, we recognize revenues over a period of time using an output method depicting the transfer of control to the customer based on variable consideration, such as volume of transactions processed with variability generally resolved in the reporting period.

Equipment

Equipment revenues are derived from the sale of equipment under contracts with standard credit terms, which are generally short-term in nature, and are recognized at a point in time when control of the promised goods and services transfers to the customer generally upon shipment or delivery pursuant to the terms of the contract.

Information Services and Other

Information services and other revenues include amounts derived from the sale of: (i) software licenses, software subscriptions, professional services and certain other ancillary fees; (ii) service related fees associated with the sale, installation and maintenance of equipment directly to our customers under contracts on standard credit terms, which are generally short-term in nature, secured by the related equipment, (iii) credit worthiness related software subscription services that are based upon either a flat monthly unlimited usage fee or a variable fee structure driven by the volume of patron credit histories generated; and (iv) ancillary marketing, database and internet-based gaming related activities.

Our software represents a functional right-to-use license and the revenues are recognized at a point in time. Subscription services represent a stand-ready performance obligation and the revenues are recognized over a period of time using an input method based on time elapsed. Professional and other services revenues are recognized over a period of time using an input method based on time elapsed as services are provided, thereby reflecting the transfer of control to the customer.

Restricted Cash

Our restricted cash primarily consists of: (i) deposits held in connection with a sponsorship agreement; (ii) WAP-related restricted funds; and (iii) Internet related cash access activities. The current portion of restricted cash, which is included in prepaid expenses and other assets, was approximately $0.9 million as of June 30, 2018 and December 31, 2017. The non-current portion of restricted cash, which is included in other assets, was approximately $0.1 million as of June 30, 2018 and December 31, 2017. The current portion of restricted cash was approximately $0.5 million and $0.3 million as of June 30, 2017 and December 31, 2016, respectively. The non-current portion of restricted cash was approximately $0.1 million as of June 30, 2017 and December 31, 2016.

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, settlement receivables, short-term trade and other receivables, settlement liabilities, accounts payable and accrued expenses approximates 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. As of June 30, 2018 and December 31, 2017, the fair value of notes receivable, net, approximated the carrying value due to contractual terms of trade and loans receivable generally being under 24 months. The fair value of our borrowings is estimated based on various inputs to determine a market price, such as: market demand and supply, size of tranche, maturity and similar instruments trading in more active markets. The estimated fair value and outstanding balances of our borrowings are as follows (in thousands).

	Level of Hierarchy	Fair Value		Outstanding Balance
June 30, 2018
Term loan	2	$	815,372	$	811,800
Senior unsecured notes	1	$	375,938	$	375,000

December 31, 2017
Term loan	2	$	826,099	$	815,900
Senior unsecured notes	1	$	372,656	$	375,000

The term loan facility was reported at fair value using a Level 2 input as there were quoted prices in markets that were not considered active as of June 30, 2018 and December 31, 2017. The senior unsecured notes were reported at fair value using a Level 1 input as there were quoted prices in markets that were considered active as of June 30, 2018 and December 31, 2017.

Reclassification of Prior Year Balances

Reclassifications were made to the prior-period Financial Statements to conform to the current period presentation, except for the adoption impact of the application of ASC 606 utilizing the modified retrospective transition method.

Recent Accounting Guidance

Recently Adopted Accounting Guidance

In March 2018, the FASB issued ASU No. 2018-05, which provides guidance on accounting for the tax effects of the 2017 Tax Act (pursuant to SEC Staff Accounting Bulletin No. 118). The new standard is effective March 13, 2018. We have adopted this guidance in the quarter ended March 31, 2018. In accordance with this guidance, some of the income tax effects recorded in 2017 are provisional and they may be adjusted during 2018.

In May 2014, the FASB issued ASU No. 2014-09, which creates ASC 606 and supersedes ASC Topic 605, “Revenue Recognition.” The guidance replaces industry-specific guidance and establishes a single five-step model to identify and recognize revenue. The core principle of the guidance is that an entity should recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires the entity to disclose further quantitative and qualitative information regarding the nature and amount of revenues arising from contracts with customers, as well as other information about the significant judgments and estimates used in recognizing revenues from contracts with customers. The guidance in ASU 2014-09 was further updated by ASU 2016-08 in March 2016, which provided clarification on the implementation of the principal versus agent considerations in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, which provides clarification on the implementation of performance obligations and licensing in ASU 2014-09. In May 2016, the FASB issued ASU 2016-11, which amended guidance provided in two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force meeting over various topics relating to ASU 606. In May 2016, the FASB issued ASU 2016-12, which clarified various topics in ASC 606. In December 2016, the FASB issued ASU 2016-20, which clarified additional topics in ASC 606. This guidance may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. We adopted this guidance effective January 1, 2018 and have provided additional information with respect to the new revenue recognition topic elsewhere in this Note 2 disclosure and also in “Note 3 — Adoption of ASC 606, Revenue from Contracts with Customers.”

In May 2017, the FASB issued ASU No. 2017-09 to clarify which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. An entity is required to account for the effects of a modification unless all of the following conditions are met: (i) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or value using an alternative measurement method) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. We adopted this guidance in the quarter ended March 31, 2018. The adoption of this ASU did not have a material impact on our Financial Statements.

In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance is to be applied using a prospective approach as of the beginning of the first period of adoption. We adopted this guidance in the quarter ended March 31, 2018. The adoption of this ASU did not have a material impact on our Financial Statements.

In October 2016, the FASB issued ASU No. 2016-18, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. We adopted this guidance in the quarter ended March 31, 2018 using a retrospective approach to each period presented. The adoption of this ASU did not have a material impact on our Financial Statements.

In October 2016, the FASB issued ASU No. 2016-16, which provides updated guidance on the recognition of the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs, and this eliminates the exception for an intra-entity transfer of such assets. This guidance will be applied using a modified retrospective approach through a cumulative-effective adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted this guidance in the quarter ended March 31, 2018. The adoption of this ASU did not have a material impact on our Financial Statements.

In August 2016, the FASB issued ASU No. 2016-15, which provides updated guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. This guidance is to be applied using a retrospective approach. If it is impracticable to apply the amendments retrospectively for some of the issues within this ASU, the amendments for those issues would be applied prospectively as of the earliest date practicable. We adopted this guidance in the quarter ended March 31, 2018. The adoption of this ASU did not have a material impact on our Financial Statements.

Recent Accounting Guidance Not Yet Adopted

In June 2018, the FASB issued ASU No. 2018-07, which expands the scope of Topic 718, Compensation—Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of this ASU to have a material impact on our Financial Statements. We are currently evaluating the impact of adopting this guidance on our Financial Statements.

In February 2018, the FASB issued ASU No. 2018-02, which provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of this ASU to have a material impact on our Financial Statements. We are currently evaluating the impact of adopting this guidance on our Financial Statements.

In June 2016, the FASB issued ASU No. 2016-13, which provides updated guidance on credit losses for financial assets measured at amortized cost basis and available-for sale debt securities. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This guidance will be applied using a modified retrospective approach for the cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective and using a prospective approach for debt securities for which any other-than-temporary impairment had been recognized before the effective date. Early adoption is permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of adopting this guidance on our Financial Statements.

In February 2016, the FASB issued ASU No. 2016-02, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. The ASU establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For lessees, leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. In July, 2018, the FASB issued ASU No. 2018-10 - Codification Improvements to Topic 842, Leases and ASU No. 2018-11 - Leases (Topic 842): Targeted Improvements. ASU No. 2018-10 affects narrow aspects of the guidance previously issued and ASU No. 2018-11 provides a practical expedient for lessors on separating components of a contract and includes an additional transition method for adopting the new standard. We plan to adopt the new standard on January 1, 2019. The guidance requires an entity to adopt the new standard, as amended, either retrospectively to each prior reporting period presented in the financial statements with the cumulative effect recognized at the beginning of the earliest comparative period or retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment, with certain practical expedients available. While we are currently assessing the impact of this ASU on our financial statements, including selecting the transition method, we expect the primary impact to our consolidated balance sheet will be the recognition of our operating leases on our balance sheets and providing disclosures as required by the new standard.

We do not expect that any other recently issued accounting guidance will have a significant effect on our consolidated financial statements.

ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2018

Revenue From Contract With Customer [Abstract]

ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS

3.ADOPTION OF ASC 606, “REVENUE FROM CONTRACTS WITH CUSTOMERS”

Change in accounting policies

On January 1, 2018, we adopted ASC 606 using the modified retrospective method, which requires us to evaluate whether any cumulative adjustment is required to be recorded to retained earnings (or accumulated deficit) as a result of applying the provisions set forth under ASC 606 for any existing arrangements not yet completed as of the adoption date of January 1, 2018. We determined that there was an immaterial cumulative adjustment in the amount of approximately $4.4 million, which we recorded to accumulated deficit as of the adoption date as a result of applying the modified retrospective transition method. In addition, under the modified retrospective method, our prior period results were not recast to reflect the new revenue recognition standard. Except for the changes discussed with respect to revenue recognition, the impact of which is summarized in the tables below, we have consistently applied our accounting policies to all periods presented in our Financial Statements.

Games revenues

We previously reported certain costs incurred in connection with our WAP platform, consisting primarily of the WAP jackpot expenses, as cost of revenues. Under ASC 606, such costs are reflected as reductions to gaming operations revenues on a net basis.

FinTech revenues

We previously reported costs and expenses related to our cash access services, which include commission expenses payable to casino operators, interchange fees payable to the network associations and processing and related costs payable to other third party partners, as a cost of revenues. Under ASC 606, such costs are reflected as reductions to cash access services revenues on a net basis.

The following table presents the impact of the application of ASC 606 utilizing the modified retrospective transition method to certain line items on our Unaudited Condensed Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2018 (in thousands):

	Three Months Ended June 30, 2018
							Without Adoption
	As reported			Adjustments			of ASC 606
Revenues
Games revenues
Gaming operations	$	43,022		$	619		$	43,641
Games total revenues		65,948			619			66,567

FinTech revenues
Cash access services		39,739			155,000			194,739
Equipment		4,765			(2,261	)		2,504
FinTech total revenues		52,734			152,739			205,473

Total revenues		118,682			153,358			272,040

Costs and expenses
Games cost of revenues⁽¹⁾
Gaming operations		4,211			619			4,830
Games total cost of revenues		16,815			619			17,434

FinTech cost of revenues⁽¹⁾
Cash access services		2,446			155,000			157,446
Equipment		3,426			—			3,426
FinTech total cost of revenues		6,852			155,000			161,852

Total costs and expenses		96,085			155,619			251,704

Operating income		22,597			(2,261	)		20,336

Income before income tax		309			(2,261	)		(1,952	)

Income tax benefit		(1,166	)		—			(1,166	)
Net income		1,475			(2,261	)		(786	)

Comprehensive income		417			(2,261	)		(1,844	)

(1)	Exclusive of depreciation and amortization.

The adoption of ASC 606 utilizing the modified retrospective transition method did not have a material impact to our Balance Sheets and Cash Flows as of and for the three months ended June 30, 2018.

	Six Months Ended June 30, 2018
							Without Adoption
	As reported			Adjustments			of ASC 606
Revenues
Games revenues
Gaming operations	$	83,078		$	1,081		$	84,159
Games total revenues		126,165			1,081			127,246

FinTech revenues
Cash access services		77,958			310,448			388,406
Equipment		9,183			(2,472	)		6,711
FinTech total revenues		103,518			307,976			411,494

Total revenues		229,683			309,057			538,740

Costs and expenses
Games cost of revenues⁽¹⁾
Gaming operations		8,393			1,081			9,474
Games total cost of revenues		31,738			1,081			32,819

FinTech cost of revenues⁽¹⁾
Cash access services		4,676			309,899			314,575
Equipment		5,940			(85	)		5,855
FinTech total cost of revenues		12,813			309,814			322,627

Total costs and expenses		182,595			310,895			493,490

Operating income		47,088			(1,838	)		45,250

Income before income tax		4,493			(1,838	)		2,655

Income tax benefit		(1,591	)		—			(1,591	)
Net income		6,084			(1,838	)		4,246

Comprehensive income		5,349			(1,838	)		3,511

(1)	Exclusive of depreciation and amortization.

The adoption of ASC 606 utilizing the modified retrospective transition method did not have a material impact to our Balance Sheets and Cash Flows as of and for the six months ended June 30, 2018.

BUSINESS COMBINATIONS

6 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

BUSINESS COMBINATIONS

4.	BUSINESS COMBINATIONS

We account for business combinations in accordance with ASC 805, which requires that the identifiable assets acquired and liabilities assumed be recorded at their estimated fair values on the acquisition date separately from goodwill, which is the excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities. We include the results of operations of an acquired business as of the acquisition date. We had no material acquisitions for the three and six months ended June 30, 2018 and 2017.

FUNDING AGREEMENTS

6 Months Ended

Jun. 30, 2018

A T M Funding Agreement Disclosure [Abstract]

FUNDING AGREEMENTS

5.	FUNDING AGREEMENTS

Commercial Cash Arrangements

We have commercial arrangements with third party vendors to provide cash for certain of our ATMs. For the use of these funds, we pay a cash usage fee on either the average daily balance of funds utilized multiplied by a contractually defined cash usage rate or the amounts supplied multiplied by a contractually defined cash usage rate. These cash usage fees, reflected as interest expense within the Statements of Income (Loss), were $2.0 million and $3.7 million for the three and six months ended June 30, 2018, respectively, and $1.2 million and $2.4 million for the three and six months ended June 30, 2017, 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 balances of ATM cash utilized by us from the third parties were $225.3 million and $289.8 million as of June 30, 2018 and December 31, 2017, respectively.

Our primary commercial arrangement, the Contract Cash Solutions Agreement, as amended, with Wells Fargo, N.A. Wells Fargo, provides us with cash in the maximum amount of $300.0 million with the ability to increase the amount by $75 million over a 5-day period for holidays, such as the period around New Year’s Day. The agreement currently expires on June 30, 2020. We are responsible for any losses of cash in the ATMs under this agreement, and we self‑insure for this risk. We incurred no material losses related to this self‑insurance for the three and six months ended June 30, 2018 and 2017.

Site-Funded ATMs

We operate ATMs at certain customer gaming establishments where the gaming establishment provides the cash required for the ATM operational needs. We are required to reimburse the customer for the amount of cash dispensed from these site-funded ATMs. The site-funded ATM liability included within settlement liabilities in the accompanying Balance Sheets was $150.9 million and $210.8 million as of June 30, 2018 and December 31, 2017, respectively.

Everi-Funded ATMs

We enter into agreements with customers for certain of our Canadian ATMs whereby we provide the cash required to operate the ATMs. We supplied approximately $6.9 million of our cash for these ATMs at June 30, 2018 and December 31, 2017.

Prefunded Cash Access Agreements

Due to certain regulatory requirements, some international gaming establishments require prefunding of cash to cover all outstanding settlement amounts in order for us to provide cash access services to their properties. We enter into agreements with these operators for which we supply our cash access services for their properties. Under these agreements, we maintain sole discretion to either continue or cease operations as well as discretion over the amounts prefunded to the properties and may request amounts to be refunded to us, with appropriate notice to the operator, at any time. The initial prefunded amounts and subsequent amounts from the settlement of transactions are deposited into a bank account that is to be used exclusively for cash access services, and we maintain the right to monitor all transaction activity in that account. The total amount of prefunded cash outstanding was approximately $6.0 million and $8.4 million at June 30, 2018 and December 31, 2017, respectively, and is included in prepaid expenses and other assets on our Balance Sheets.

TRADE AND OTHER RECEIVABLES

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

TRADE AND OTHER RECEIVABLES

6.	TRADE AND OTHER RECEIVABLES

Trade and loans receivables represent short-term credit granted to customers as well as long-term loans receivable on our games, 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 taxes receivables and other miscellaneous receivables. The balance of trade and other receivables consisted of the following (in thousands):

	At June 30,			At December 31,
	2018			2017
Trade and other receivables, net
Games trade and loans receivables	$	47,815		$	38,070
FinTech trade and loans receivables⁽¹⁾		21,139			10,780
Other receivables		1,302			1,570
Total trade and other receivables, net		70,256			50,420
Less: non-current portion of receivables
Games trade and loans receivables		(2,515	)		(1,267	)
FinTech trade and loans receivables⁽¹⁾		(6,158	)		(1,371	)
Total non-current portion of receivables		(8,673	)		(2,638	)
Total trade and other receivables, current portion	$	61,583		$	47,782

(1)

In connection with the adoption of ASC 606 utilizing the modified retrospective transition method, we recorded an immaterial cumulative adjustment with respect to certain amounts that had been previously deferred under the then existing revenue recognition guidance as of December 31, 2017 that required recognition under ASC 606 as of the effective date of adoption in accumulated deficit.

At least quarterly, we evaluate the collectability of the outstanding balances and establish a reserve for the amount of the expected losses on our receivables. The allowance for doubtful accounts for trade receivables was $5.4 million as of June 30, 2018 and $4.7 million as of December 31, 2017 and includes reserves for both Games and FinTech receivables. The provision for doubtful customer accounts receivable is generally included within operating expenses in the Statements of Income (Loss). We also have a provision for doubtful accounts specifically associated with our check warranty service, whereby we collect a fee and undertake responsibility for collecting the receivables, which is included within FinTech cost of revenues in the Statements of Income (Loss). The outstanding balances of the check warranty and general reserves were $2.8 million and $2.6 million, respectively, as of June 30, 2018 and $2.7 million and $2.0 million, respectively, as of December 31, 2017.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

INVENTORY

6 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

INVENTORY

7.

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. The inventory is stated at the lower of cost or net realizable value and accounted for using the FIFO method.

There was no material impairment of our inventory for the three and six months ended June 30, 2018 and 2017.

We recorded an immaterial impairment charge of approximately $1.8 million in our Games segment for the three and six months ended June 30, 2018 to reduce the carrying value of certain component parts to their fair values. The adjustment was included in operating expenses in our Statements of Income (Loss).

Inventory consisted of the following (in thousands):

	At June 30,		At December 31,
	2018		2017
Inventory
Component parts, net of reserves of $1,563 and $1,327 at June 30, 2018 and December 31, 2017, respectively	$	18,598	$	18,782
Work-in-progress		1,389		985
Finished goods		3,540		4,200
Total inventory	$	23,527	$	23,967

PREPAID AND OTHER ASSETS

6 Months Ended

Jun. 30, 2018

Prepaid Expense And Other Assets [Abstract]

PREPAID AND OTHER ASSETS

8.	PREPAID AND OTHER ASSETS

Prepaid and other assets include the balance of prepaid expenses, deposits, debt issuance costs on our Revolving Credit Facility (defined herein), restricted cash and other assets. The current portion of these assets is included in prepaid and other 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 and other assets consisted of the following (in thousands):

	At June 30,		At December 31,
	2018		2017
Prepaid expenses and other assets
Deposits	$	7,093	$	9,003
Prepaid expenses		10,065		6,426
Other		2,605		5,241
Total prepaid expenses and other assets	$	19,763	$	20,670

The balance of the non-current portion of other assets consisted of the following (in thousands):

	At June 30,		At December 31,
	2018		2017
Other assets
Prepaid expenses and deposits	$	5,144	$	4,103
Debt issuance costs of revolving credit facility		752		849
Other		341		2,657
Total other assets	$	6,237	$	7,609

PROPERTY, EQUIPMENT AND LEASED ASSETS

6 Months Ended

Jun. 30, 2018

Property Plant And Equipment [Abstract]

PROPERTY, EQUIPMENT AND LEASED ASSETS

9.	PROPERTY, EQUIPMENT AND LEASED ASSETS

Property, equipment and leased assets consist of the following (in thousands):

		At June 30, 2018						At December 31, 2017
	Useful Life			Accumulated		Net Book				Accumulated		Net Book
	(Years)	Cost		Depreciation		Value		Cost		Depreciation		Value
Property, equipment and leased assets
Rental pool - deployed	2-4	$	180,323	$	92,065	$	88,258	$	162,319	$	80,895	$	81,424
Rental pool - undeployed	2-4		30,418		21,424		8,994		17,366		9,374		7,992
FinTech equipment	3-5		27,142		20,583		6,559		25,907		18,654		7,253
Leasehold and building improvements	Lease Term		11,339		6,103		5,236		10,981		5,211		5,770
Machinery, office and other equipment	2-5		41,082		26,781		14,301		35,167		24,087		11,080
Total		$	290,304	$	166,956	$	123,348	$	251,740	$	138,221	$	113,519

Depreciation expense related to property, equipment and leased assets totaled approximately $13.7 million and $26.5 million for the three and six months ended June 30, 2018 and $11.4 million and $22.2 million for the three and six months ended June 30, 2017, respectively.

There was no material impairment of our property, equipment and leased assets for the three and six months ended June 30, 2018 and 2017.

We recorded an immaterial impairment charge of approximately $0.8 million in our Games segment for the three and six months ended June 30, 2018 to reduce the carrying value of certain leased assets to their fair values. The adjustment was included in operating expenses in our Statements of Income (Loss).

GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

10.	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 $640.6 million at June 30, 2018 and December 31, 2017, respectively.

In accordance with ASC 350, we test goodwill at the reporting unit level, which are identified as operating segments 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 for impairment annually on a reporting unit basis, at the beginning of our fourth fiscal quarter, or more often under certain circumstances. 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 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. If the fair value of a reporting unit is less than its carrying amount, we will use the Step 1 assessment to determine the impairment.

No impairment was identified for our goodwill for the three and six months ended June 30, 2018 and 2017.

Other Intangible Assets

Other intangible assets consist of the following (in thousands):

			At June 30, 2018						At December 31, 2017
	Weighted Average
	Remaining Life				Accumulated		Net Book				Accumulated		Net Book
	(years)		Cost		Amortization		Value		Cost		Amortization		Value
Other intangible assets
Contract rights under placement fee agreements		4	$	57,594	$	8,088	$	49,506	$	57,231	$	3,910	$	53,321
Customer contracts		6		51,175		44,900		6,275		51,175		43,638		7,537
Customer relationships		8		231,100		74,136		156,964		231,100		63,653		167,447
Developed technology and software		2		264,369		175,488		88,881		249,064		158,919		90,145
Patents, trademarks and other		4		29,168		24,147		5,021		29,046		23,185		5,861
Total			$	633,406	$	326,759	$	306,647	$	617,616	$	293,305	$	324,311

Amortization expense related to other intangible assets was approximately $16.6 million and $32.9 million for the three and six months ended June 30, 2018, respectively, and $17.4 million and $34.8 million for the three and six months ended June 30, 2017, respectively.

We evaluate our other intangible assets for potential impairment in connection with our quarterly review process. There was no material impairment identified for any of our other intangible assets for the three and six months ended June 30, 2018 and 2017.

We enter into placement fee agreements to secure a long-term revenue share percentage and a fixed number of player terminal placements in a gaming facility, for which the funding under placement fee agreements is not reimbursed. In return for the fees under these agreements, each facility dedicates a percentage of its floor space, or an agreed upon unit count, for the placement of our electronic gaming machines (“EGMs”) over the term of the agreement, generally 12 to 83 months, and we receive a fixed percentage or flat fee of those machines’ hold per day. Certain of the agreements contain EGM performance standards that could allow the respective facility to reduce a portion of our guaranteed floor space.

Placement fees and amounts advanced in excess of those to be reimbursed by the customer for real property and land improvements are allocated to intangible assets and are generally amortized over the term of the contract, which is recorded as a reduction of revenue generated from the facility. In the past we have, and in the future, we may, by mutual agreement, amend these agreements to reduce our floor space at the facilities. Any proceeds received for the reduction of floor space are first applied against the intangible asset for that particular placement fee agreement, if any, and the remaining net book value of the intangible asset is prospectively amortized on a straight-line method over the remaining estimated useful life.

We paid approximately $5.9 million and $11.5 million in placement fees, including $0.4 million and $1.4 million of imputed interest, to a customer for the three and six months ended June 30, 2018, respectively, and approximately $3.0 million in placement fees for the three and six months ended June 30, 2017.

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2018

Payables And Accruals [Abstract]

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

11.	ACCOUNTS PAYABLE AND ACCRUED EXPENSES

The following table presents our accounts payable and accrued expenses (in thousands):

	At June 30,		At December 31,
	2018		2017
Accounts payable and accrued expenses
Trade accounts payable	$	64,946	$	59,435
Placement fees⁽¹⁾		22,328		22,328
Accrued interest		1,481		5,766
Deferred and unearned revenues		15,166		10,450
Cash access processing and related expenses		6,562		8,932
Payroll and related expenses		11,009		14,178
Accrued taxes		1,874		2,112
Other		9,130		11,303
Total accounts payable and accrued expenses	$	132,496	$	134,504

(1)

The total outstanding balance of the placement fee liability as of June 30, 2018 and December 31, 2017 was $27.9 million and $39.1 million, respectively. The remaining $5.6 million and $16.8 million of non-current placement fees as of June 30, 2018 and December 31, 2017, respectively, was included in other accrued expenses and liabilities in our Balance Sheets.

LONG-TERM DEBT

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

LONG-TERM DEBT

12.	LONG-TERM DEBT

The following table summarizes our outstanding indebtedness (in thousands):

	At June 30,			At December 31,
	2018			2017
Long-term debt
Senior secured term loan	$	811,800		$	815,900
Senior unsecured notes		375,000			375,000
Total debt		1,186,800			1,190,900
Less: debt issuance costs and discount		(21,203	)		(23,057	)
Total debt after debt issuance costs and discount		1,165,597			1,167,843
Less: current portion of long-term debt		(8,200	)		(8,200	)
Long-term debt, less current portion	$	1,157,397		$	1,159,643

Refinancing

On May 9, 2017 (the “Closing Date”), Everi Payments, as borrower, and Holdings entered into a credit agreement 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 (amended as described below, the “New Credit Agreement”). The New Credit Agreement provides for: (i) a $35.0 million, five-year senior secured revolving credit facility (the “New Revolving Credit Facility”); and (ii) an $820.0 million, seven-year senior secured term loan facility (the “New Term Loan Facility,” and together with the New Revolving Credit Facility, the “New Credit Facilities”). The fees associated with the New Credit Facilities included discounts of approximately $4.1 million and debt issuance costs of approximately $15.5 million. All borrowings under the New Revolving Credit Facility are subject to the satisfaction of customary conditions, including the absence of defaults and the accuracy of representations and warranties.

The proceeds from the New Term Loan Facility incurred on the Closing Date were used to: (i) refinance: (a) Everi Payments’ existing credit facility with an outstanding balance of approximately $462.3 million with Bank of America, N.A., as administrative agent, collateral agent, swing line lender and letter of credit issuer, Deutsche Bank Securities Inc., as syndication agent, and Merrill Lynch, Pierce, Fenner & Smith Incorporated and Deutsche Bank Securities Inc., as joint lead arrangers and joint book managers (the “Prior Credit Facility”); and (b) Everi Payments’ 7.25% Senior Secured Notes due 2021 in the aggregate original principal amount of $335.0 million (the “Refinanced Secured Notes”); and (ii) pay related transaction fees and expenses.

In connection with the refinancing, we recorded a non-cash charge of approximately $14.6 million during the second quarter of 2017 related to the unamortized deferred financing fees and discounts related to the extinguished term loan under the Prior Credit Facility and the redeemed Refinanced Secured Notes. No prepayment penalties were incurred.

On November 13, 2017 (the “Repricing Closing Date”), we entered into an amendment to the New Credit Agreement (the “First Amendment”) which, among other things, reduced the interest rate on the approximately $818.0 million then outstanding balance of the New Term Loan Facility, but did not change the maturity dates for the New Term Loan Facility or the New Revolving Credit Facility or the financial covenants or other debt repayments terms set forth in the New Credit Agreement. We incurred approximately $3.0 million of debt issuance costs and fees associated with the repricing of the New Term Loan Facility.

On May 17, 2018, we entered into a Second Amendment (the “Second Amendment”) to the New Credit Agreement, which reduced the interest rate on the $813.9 million outstanding balance of the senior secured term loan under the Credit Agreement by 50 basis points to LIBOR + 3.00% from LIBOR + 3.50% with the LIBOR floor unchanged at 1.00%. The senior secured term loan 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 or any amendment to the repriced term loan that reduces the interest rate thereon, in each case, to the extent occurring within six months of the effective date of the Second Amendment. The maturity date for the Credit Agreement remains May 9, 2024, and no changes were made to the financial covenants or other debt repayment terms. We incurred approximately $1.3 million of debt issuance costs and fees associated with the repricing of the New Term Loan Facility.

New Credit Facilities

The New Term Loan Facility matures seven years after the Closing Date and the New Revolving Credit Facility matures five years after the Closing Date. The New Revolving Credit Facility is available for general corporate purposes, including permitted acquisitions, working capital and the issuance of letters of credit.

The interest rate per annum applicable to loans under the New Revolving Credit Facility is, at Everi Payments’ option, the base rate or the Eurodollar Rate (defined to be the London Interbank Offered Rate or a comparable or successor rate) (the “Eurodollar Rate”) plus, in each case, an applicable margin. The interest rate per annum applicable to the New Term Loan Facility also is, at Everi Payments’ option, the base rate or the Eurodollar Rate plus, in each case, an applicable margin. The Eurodollar Rate is reset at the beginning of each selected interest period based on the Eurodollar Rate then in effect; provided that, if the Eurodollar Rate is below zero, then such rate will be equal to zero plus the applicable margin. The base rate is a fluctuating interest rate equal to the highest of: (i) the prime lending rate announced by the administrative agent; (ii) the federal funds effective rate from time to time plus 0.50%; and (iii) the Eurodollar Rate (after taking account of any applicable floor) applicable for an interest period of one month plus 1.00%. Prior to the effectiveness of the First Amendment on the Repricing Closing Date, the applicable margins for both the New Revolving Credit Facility and the New Term Loan Facility were: (i) 4.50% in respect of Eurodollar Rate loans and (ii) 3.50% in respect of base rate loans. The applicable margins for the New Term Loan Facility from and after the effectiveness of the First Amendment on the Repricing Closing Date through the effectiveness of the Second Amendment were: (i) 3.50% in respect of Eurodollar Rate loans and (ii) 2.50% in respect of base rate loans. The applicable margins for the New Term Loan Facility from and after the effectiveness of the Second Amendment are: (i) 3.00% in respect of Eurodollar Rate loans and (ii) 2.00% in respect of base rate loans.

Voluntary prepayments of the term loan and the revolving loans and voluntary reductions in the unused commitments are permitted in whole or in part, in minimum amounts as set forth in the New Credit Agreement governing the New Credit Facilities, with prior notice but without premium or penalty, except that certain refinancings of the term loans within six months after the Repricing Closing Date will be subject to a prepayment premium of 1.00% of the principal amount repaid.

Subject to certain exceptions, the obligations under the New Credit Facilities are secured by substantially all of the present and subsequently acquired assets of each of Everi Payments, Holdings and the subsidiary guarantors party thereto including: (i) a perfected first priority pledge of all the capital stock of Everi Payments and each domestic direct, wholly owned material restricted subsidiary held by Holdings, Everi Payments or any such subsidiary guarantor; and (ii) a perfected first priority security interest in substantially all other tangible and intangible assets of Holdings, Everi Payments, 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 New Credit Facilities are unconditionally guaranteed by Holdings and such subsidiary guarantors.

The New Credit Agreement governing the New Credit Facilities contains certain covenants that, among other things, limit Holdings’ ability, and the ability of certain of its 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 its affiliates. The New Credit Agreement governing the New Credit Facilities also requires Holdings, together with its subsidiaries, to comply with a consolidated secured leverage ratio. At June 30, 2018, our consolidated secured leverage ratio was 3.42 to 1.00, with a maximum allowable ratio of 5.00 to 1.00 (which maximum allowable ratio is reduced to 4.75 to 1.00 as of December 31, 2018, 4.50 to 1.00 as of December 31, 2019, 4.25 to 1.00 as of December 31, 2020, and 4.00 to 1.00 as of December 31, 2021 and each December 31 thereafter).

We were in compliance with the covenants and terms of the New Credit Facilities as of June 30, 2018.

Events of default under the New Credit Agreement governing the New Credit Facilities include customary events such as a cross-default provision with respect to other material debt. In addition, an event of default will occur if Holdings undergoes a change of control. This is defined to include the case where Holdings ceases to own 100% of the equity interests of Everi Payments, or where any person or group acquires a percentage of the economic or voting interests of Holdings’ capital stock of 35% or more (determined on a fully diluted basis).

We are required to repay the New Term Loan Facility in an amount equal to 0.25% per quarter of the initial aggregate principal, with the final principal repayment installment on the maturity date. Interest is due in arrears on each interest payment date applicable thereto and at such other times as may be specified in the New Credit Agreement. As to any loan other than a base rate loan, the interest payment dates shall be the last day of each interest period applicable to such loan and the maturity date (provided, however, that if any interest period for a Eurodollar Rate loan exceeds three months, the respective dates that fall every three months after the beginning of such interest period shall also be interest payment dates). As to any base rate loan, the interest payment dates shall be last business day of each March, June, September and December and the maturity date.

For the three and six months ended June 30, 2018, the New Term Loan Facility had an applicable weighted average interest rate of 5.24% and 5.15%, respectively.

At June 30, 2018, we had $811.8 million of borrowings outstanding under the New Term Loan Facility and no borrowings outstanding under the New Revolving Credit Facility. We had $35.0 million of additional borrowing availability under the New Revolving Credit Facility as of June 30, 2018.

Refinanced Senior Secured Notes

In connection with entering into the New Credit Agreement, on May 9, 2017, Everi Payments redeemed in full all outstanding Refinanced Secured Notes in the aggregate principal amount of $335.0 million face value (plus accrued interest) of the Refinanced Secured Notes. As a result of the redemption, we recorded non-cash charges in the amount of approximately $1.7 million, which consisted of unamortized deferred financing fees of $0.2 million and discounts of $1.5 million. These fees were included in the total $14.6 million non-cash charge referred to above.

Senior Unsecured Notes

In December 2014, we issued $350.0 million in aggregate principal amount of 10.0% Senior Unsecured Notes due 2022 (the “2014 Unsecured Notes”) under an indenture (as supplemented, the “2014 Notes Indenture”), dated December 19, 2014, between Everi Payments (as successor issuer), and Deutsche Bank Trust Company Americas, as trustee. The fees associated with the 2014 Unsecured Notes included original issue discounts of approximately $3.8 million and debt issuance costs of approximately $14.0 million. In December 2015, we completed an exchange offer in which all of the unregistered 2014 Unsecured Notes were exchanged for a like amount of 2014 Unsecured Notes that had been registered under the Securities Act.

In December 2017, we issued $375.0 million in aggregate principal amount of 7.50% Senior Unsecured Notes due 2025 (the “2017 Unsecured Notes”) under an indenture (the “2017 Notes Indenture”), dated December 5, 2017, among Everi Payments (as issuer), Holdings and certain of its direct and indirect domestic subsidiaries as guarantors, and Deutsche Bank Trust Company Americas, as trustee. Interest on the 2017 Unsecured Notes accrues at a rate of 7.50% per annum and is payable semi-annually in arrears on each June 15 and December 15, commencing on June 15, 2018. The 2017 Unsecured Notes will mature on December 15, 2025. We incurred approximately $6.1 million of debt issuance costs and fees associated with the issuance of the 2017 Unsecured Notes.

On December 5, 2017, together with the issuance of the 2017 Unsecured Notes, Everi Payments satisfied and discharged the 2014 Notes Indenture relating to the 2014 Unsecured Notes. To effect the satisfaction and discharge, Everi Payments issued an unconditional notice of redemption to Deutsche Bank Trust Company Americas, as trustee, of the redemption in full on January 15, 2018 (the “Redemption Date”) of all outstanding 2014 Unsecured Notes under the terms of the 2014 Notes Indenture. In addition, using the proceeds from the sale of the 2017 Unsecured Notes and cash on hand, Everi Payments irrevocably deposited with the trustee funds sufficient to pay the redemption price of the 2014 Unsecured Notes of 107.5% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the Redemption Date (the “Redemption Price”), and irrevocably instructed the trustee to apply the deposited money toward payment of the Redemption Price for the 2014 Unsecured Notes on the Redemption Date. Upon the trustee’s receipt of such funds and instructions, along with an officer’s certificate of Everi Payments and an opinion of counsel certifying and opining that all conditions under the 2014 Notes Indenture to the satisfaction and discharge of the 2014 Notes Indenture had been satisfied, the 2014 Notes Indenture was satisfied and discharged, and all of the obligations of Everi Payments and the guarantors under the 2014 Notes Indenture ceased to be of further effect, as of December 5, 2017 (subject to certain exceptions). The 2014 Unsecured Notes were thereafter redeemed on the Redemption Date.

In connection with the issuance of the 2017 Unsecured Notes and the redemption of the 2014 Unsecured Notes, in December 2017 we incurred a $37.2 million loss on extinguishment of debt consisting of a $26.3 million make-whole premium related to the satisfaction and redemption of the 2014 Unsecured Notes and approximately $10.9 million for the write-off of related unamortized debt issuance costs and fees.

We were in compliance with the terms of the 2017 Unsecured Notes as of June 30, 2018.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

13.	COMMITMENTS AND CONTINGENCIES

There were no material changes in our commitments under contractual obligations as compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

We are involved in various investigations, claims and lawsuits in the ordinary course of our business. In addition, various legal actions, claims and governmental inquiries and proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. Although the outcome of our legal proceedings cannot be predicted with certainty and no assurances can be provided, based upon current information, we do not believe the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, will have a material adverse impact on our financial position, liquidity or results of operations.

SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2018

Stockholders Equity Note [Abstract]

SHAREHOLDERS' EQUITY

14.	SHAREHOLDERS’ EQUITY

Preferred Stock. Our amended and restated certificate of incorporation, as amended, allows our Board of Directors, without further action by stockholders, to issue up to 50 million shares of preferred stock in one or more series and to fix the designations, powers, preferences, privileges and relative participating, optional, or special rights as well as the qualifications, limitations or restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences. As of June 30, 2018 and December 31, 2017, we had no shares of preferred stock outstanding.

Common Stock. Subject to the preferences that may apply to shares of preferred stock that may be outstanding at the time, the holders of outstanding shares of common stock are entitled to receive dividends out of assets legally available at the times and in the amounts as our Board of Directors may from time to time determine. All dividends are non-cumulative. In the event of the liquidation, dissolution or winding up of Everi, the holders of common stock are entitled to share ratably in all assets remaining after the payment of liabilities, subject to the prior distribution rights of preferred stock, if any, then outstanding. Each stockholder is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders. Cumulative voting for the election of directors is not provided for. The common stock is not entitled to preemptive rights and is not subject to conversion or redemption. There are no sinking fund provisions applicable to the common stock. Each outstanding share of common stock is fully paid and non-assessable. As of June 30, 2018 and December 31, 2017, we had 94.4 million and 93.1 million shares of common stock issued, respectively.

Treasury Stock. Employees may direct us to withhold vested shares of restricted stock to satisfy the minimum statutory withholding requirements applicable to their restricted stock vesting. We withheld from restricted stock awards 1,215 and 6,216 shares of common stock for the three and six months ended June 30, 2018, respectively, at an aggregate purchase price of $8,878 and $47,278, respectively, and 455 and 3,029 shares of common stock for the three and six months ended June 30, 2017, respectively, at an aggregate purchase price of $3,117 and $10,591, respectively, to satisfy the minimum applicable tax withholding obligations related to the vesting of such restricted stock awards.

WEIGHTED AVERAGE COMMON SHARES

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

WEIGHTED AVERAGE COMMON SHARES

15.	WEIGHTED AVERAGE COMMON SHARES

The weighted average number of shares of common stock outstanding used in the computation of basic and diluted loss per share is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Weighted average shares
Weighted average number of common shares outstanding - basic		69,203		66,350		68,946		66,221
Potential dilution from equity awards⁽¹⁾		4,237		—		4,377		—
Weighted average number of common shares outstanding - diluted⁽¹⁾		73,440		66,350		73,323		66,221

(1)

The potential dilution excludes the weighted average effect of equity awards to purchase 8.6 million and 8.1 million shares of common stock for the three and six months ended June 30, 2018, respectively, because the application of the treasury stock method, as required, makes them anti-dilutive. Company was in a net loss position for the three and six months ended June 30, 2017; therefore, potentially dilutive common shares were excluded as their effects would be anti-dilutive under the application of the treasury stock method. Equity awards to purchase approximately 11.9 million and 15.3 shares of common stock for the three and six months ended June 30, 2017 were excluded from the diluted net loss per share results.

SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

SHARE-BASED COMPENSATION

16.	SHARE-BASED COMPENSATION

Equity Incentive Awards

Our 2014 Equity Incentive Plan (as amended and restated effective May 23, 2017, the “Amended and Restated 2014 Plan”) and our 2012 Equity Incentive Plan (as amended, the “2012 Plan”) are used to attract and retain the best available personnel, to provide additional incentives to employees, directors and consultants and to promote the success of our business. The 2012 Plan was assumed in connection with our 2014 acquisition of Everi Games Holding and conformed to include similar provisions to those as set forth in the Amended and Restated 2014 Plan. Our equity incentive plans are administered by the Compensation Committee of our Board of Directors, which has the authority to select individuals who are to receive equity incentive awards and to specify the terms and conditions of grants of such awards, including, but not limited to the vesting provisions and exercise prices.

Generally, we grant the following award types with varying vesting provisions and expiration periods: (a) time-based options; (b) market-based options; (c) time-based restricted stock; and (d) restricted stock units (“RSUs”) with either time- or performance-based criteria.

A summary of award activity is as follows (in thousands):

	Stock Options			Restricted Stock			Restricted Stock
	Granted			Awards Granted			Units Granted
Outstanding, December 31, 2017		19,131			74			—
Granted		—			—			1,838
Exercised options or vested shares		(1,288	)		(22	)		—
Cancelled or forfeited		(1,209	)		—			(5	)
Outstanding, June 30, 2018		16,634			52			1,833

There are approximately 3.3 million awards of our common stock available for future equity grants, both under the Amended and Restated 2014 Plan and the 2012 Plan. There are no awards available for future equity grants under the 2005 Plan.

Stock Options

Our time-based stock options granted under our equity plans generally vest at a rate of 25% per year on each of the first four anniversaries of the option grant dates and the options expire after a ten-year period. We estimate forfeiture amounts based on historical patterns.

Our market-based options granted in 2017 vest at a rate of 25% per year on each of the first four anniversaries of the grant date, provided that as of the vesting date for each vesting tranche, the closing price of our shares on the New York Stock Exchange is at least a specified price hurdle, defined as a 25% premium to the closing stock price on the grant date. If the price hurdle is not met as of the vesting date for a vesting tranche, then the vested tranche shall vest and become vested shares on the last day of a period of 30 consecutive trading days during which the closing price is at least the price hurdle. These options expire after a ten-year period.

There were no time-based or market-based option awards granted during the six months ended June 30, 2018.

The fair values of our standard time-based options were determined as of the date of grant using the Black-Scholes option pricing model with the following assumptions:

	Six Months Ended
	June 30,
	2017
Risk-free interest rate		2	%
Expected life of options (in years)		6
Expected volatility		54	%
Expected dividend yield		—	%

The fair values of our market-based options were determined as of the date of grant using a lattice-based option valuation model with the following assumptions:

	Six Months Ended
	June 30,
	2017
Risk-free interest rate		3	%
Measurement period (in years)		10
Expected volatility		70	%
Expected dividend yield		—	%

The following table presents the options activity:

						Weighted
	Number of			Weighted Average		Average Life		Aggregate
	Options			Exercise Price		Remaining		Intrinsic Value
	(in thousands)			(per share)		(years)		(in thousands)
Outstanding, December 31, 2017		19,131		$	5.34		6.4	$	45,887
Granted		—		$	—
Exercised		(1,288	)	$	4.94
Canceled or forfeited		(1,209	)	$	5.77
Outstanding, June 30, 2018		16,634		$	5.34		6.5	$	36,771
Vested and expected to vest, June 30, 2018		15,355		$	5.39		6.5	$	33,418
Exercisable, June 30, 2018		10,101		$	6.06		5.9	$	16,376

There were no options granted for the three and six months ended June 30, 2018 and 58,000 and 4.1 million options granted for the three and six months ended June 30, 2017, respectively. The weighted average grant date fair value per share of options granted was $3.28 and $1.83 for the three and six months ended June 30, 2017, respectively. The total intrinsic value of options exercised was $2.5 million and $3.7 million for the three and six months ended June 30, 2018, respectively, and $2.0 million for the three and six months ended June 30, 2017.

There was $5.2 million in unrecognized compensation expense related to options expected to vest as of June 30, 2018. This cost is expected to be recognized on a straight-line basis over a weighted average period of 3.2 years. We recorded $3.7 million during the six months ended June 30, 2018 in non-cash compensation expense related to options granted that were expected to vest as of June 30, 2018. During the three and six months ended June 30, 2018, we received $2.8 million and $7.1 million, respectively, in cash from the exercise of options.

There was $13.4 million in unrecognized compensation expense related to options expected to vest as of June 30, 2017. This cost was expected to be recognized on a straight-line basis over a weighted average period of 2.4 years. We recorded $3.3 million during the six months ended June 30, 2017 in non-cash compensation expense related to options granted that were expected to vest as of June 30, 2017. We received $1.8 million in cash from the exercise of options for the three and six months ended June 30, 2017.

Restricted Stock Awards

The following is a summary of non-vested share awards for our time-based restricted stock:

				Weighted
	Shares			Average Grant
	Outstanding			Date Fair Value
	(in thousands)			(per share)
Outstanding, December 31, 2017		74		$	7.00
Granted		—		$	—
Vested		(22	)	$	6.91
Forfeited		—		$	—
Outstanding, June 30, 2018		52		$	7.04

There were no shares of restricted stock granted for the three and six months ended June 30, 2018. The total fair value of restricted stock vested was approximately $33,306 and $152,054 for the three and six months ended June 30, 2018, respectively, and $12,128 and $80,590 for the three and six months ended June 30, 2017, respectively.

There was $0.2 million in unrecognized compensation expense related to shares of restricted stock expected to vest as of June 30, 2018. This cost is expected to be recognized on a straight-line basis over a weighted average period of 0.6 years. During the six months ended June 30, 2018, there were 22,002 shares of restricted stock that vested and we recorded $0.3 million in non-cash compensation expense related to restricted stock expected to vest.

There was $0.9 million in unrecognized compensation expense related to shares of restricted stock expected to vest as of June 30, 2017. This cost was expected to be recognized on a straight-line basis over a weighted average period of 1.5 years. During the six months ended June 30, 2017, there were 11,070 shares of restricted stock that vested and we recorded $0.2 million in non-cash compensation expense related to the restricted stock expected to vest.

Restricted Stock Units

The following is a summary of non-vested RSU awards:

				Weighted		Weighted
	Shares			Average Grant		Average Life		Aggregate
	Outstanding			Date Fair Value		Remaining		Intrinsic Value
	(in thousands)			(per share)		(years)		(in thousands)
Outstanding, December 31, 2017		—		$	—
Granted		1,838		$	7.49
Vested		—		$	—
Forfeited		(5	)	$	7.47
Outstanding, June 30, 2018		1,833		$	7.49		2.5	$	13,195
Vested and expected to vest, June 30, 2018		1,125		$	7.49		2.3	$	8,099
Exercisable, June 30, 2018		—		$	—		—	$	—

The time-based RSUs granted during the three months ended June 30, 2018 vest at a rate of 25% per year on each of the first four anniversaries of the grant dates.

The performance-based RSUs granted during the three months ended June 30, 2018 will be evaluated by our Compensation Committee of our Board of Directors after a performance period, beginning on the date of grant through December 31, 2020, based on certain revenue and Adjusted EBITDA growth rate metrics, with achievement of each measure to be determined independently of one another. If the performance criteria of the metrics are approved, the eligible awards will become vested on the third anniversary of the grant dates.

The time-based RSUs granted during the three months ended March 31, 2018 to independent members of our Board of Directors vest in equal installments on each of the first three anniversary dates of the grant date and settle on the earliest of the following events: (i) March 7, 2028; (ii) death; (iii) the occurrence of a Change in Control (as defined in the Amended and Restated 2014 Plan), subject to qualifying conditions; or (iv) the date that is six months following the separation from service, subject to qualifying conditions.

There were 1.8 million shares of RSU awards granted for the six months ended June 30, 2018. There were no RSUs granted for the six months ended June 30, 2017. There were no RSUs vested during the six months ended June 30, 2018 and 2017.

There was $7.9 million in unrecognized compensation expense related to RSU awards expected to vest as of June 30, 2018. This cost is expected to be recognized on a straight-line basis over a weighted average period of 3.5 years. We recorded $0.3 million during the six months ended June 30, 2018 in non-cash compensation expense related to RSU awards.

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	17.INCOME TAXES The income tax benefit reflected an effective income tax rate of negative 377.3% and negative 35.4% for the three and six months ended June 30, 2018, respectively, which was less than the statutory federal rate of 21.0%, primarily due to a decrease in our valuation allowance for deferred tax assets and the benefit from a research credit. The decrease in our valuation allowance is primarily due to the income during the year and the interest deduction limitation (deferred tax asset) which can be offset against our indefinite lived deferred tax liabilities. The income tax provision reflected an effective income tax rate of negative 10.8% and a negative 14.8% for the three and six months ended June 30, 2017, respectively, which was less than the statutory federal rate of 35.0%, primarily due to an increase in our valuation allowance for deferred tax assets, partially offset by state taxes, the benefit from stock option exercises, and the benefit from a research credit. 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, 2018, we recorded $0.9 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. Other than the unrecognized tax benefit recorded, we believe that our income tax filing positions and deductions will be sustained upon audit, and we do not anticipate any other adjustments that will result in a material change to our financial position. 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 Income (Loss). On December 22, 2017, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Cut and Jobs Act of 2017 (the “2017 Tax Act”). SAB 118 was added to the FASB codification in March 2018 with the issuance of ASU 2018-05. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date for companies to complete the accounting under Accounting Standards Codification Topic 740 Income Taxes (“ASC 740”). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the 2017 Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the 2017 Tax Act is incomplete but for which they are able to determine a reasonable estimate, it must record a provisional amount in the financial statements. Provisional treatment is proper in light of anticipated additional guidance from various taxing authorities, the SEC, the FASB, and even the Joint Committee on Taxation. Provisional treatment is also necessary if the company is waiting for final financial information from domestic and foreign equity investments. If a company cannot determine a provisional amount to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the 2017 Tax Act. In accordance with the SAB 118 guidance, some of the income tax effects recorded in 2017 are provisional, including the one-time transition tax, the effect on our valuation allowance including the stricter limits on interest deductions, and the re-measurement of our deferred tax assets and liabilities. In addition, we are still evaluating the Global Intangible Low-Taxed Income provisions of the 2017 Tax Act and its impact, if any, on our Financial Statements. The accounting for these income tax effects may be adjusted during 2018 as a result of continuing analysis of the 2017 Tax Act; additional implementation guidance from the IRS, state tax authorities, the SEC, the FASB, or the Joint Committee on Taxation; and new information from domestic or foreign equity affiliates. As of June 30, 2018, we have not finalized our analysis of these provisional amounts.

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

SEGMENT INFORMATION

18.	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 in deciding how to allocate resources and in assessing performance. Our chief operating decision-making group consists of the Chief Executive Officer and the Chief Financial Officer. This group manages the business, allocates resources and measures profitability based on our operating segments. Our operating segments are managed and reviewed separately, as each represents products that can be sold separately to our customers.

Our chief operating decision-making group has determined the following to be the operating segments for which we conduct business: (a) Games and (b) FinTech. We have reported our financial performance based on our segments in both the current and prior periods. Each of these segments is monitored by our management for performance against our internal forecast and is consistent with our internal management reporting.

•

The Games segment provides solutions directly to gaming establishments to offer their patrons gaming entertainment-related experiences including: leased gaming equipment; sales and maintenance related services of gaming equipment; gaming systems; and ancillary products and services.

•

The FinTech segment provides solutions directly to gaming establishments to offer their patrons cash access-related services and products, including: access to cash at gaming facilities via ATM cash withdrawals, credit card cash access transactions and POS debit card cash access transactions; check-related services; equipment and 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 accounting policies of the operating segments are generally the same as those described in the summary of significant accounting policies. Since we adopted ASC 606 utilizing the modified retrospective method, the prior year comparative amounts shown in the tables below have not been restated.

The following tables present segment information (in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
Games
Revenues
Gaming operations	$	43,022	$	36,869	$	83,078	$	73,400
Gaming equipment and systems		22,278		17,557		42,431		36,281
Gaming other		648		678		656		699
Total revenues		65,948		55,104		126,165		110,380

Costs and expenses
Cost of revenues⁽¹⁾
Gaming operations		4,211		3,963		8,393		7,171
Gaming equipment and systems		12,045		8,740		22,786		17,976
Gaming other		559		536		559		536
Games total cost of revenues		16,815		13,239		31,738		25,683

Operating expenses		16,210		10,588		28,217		21,197
Research and development		4,595		4,618		8,906		9,161
Depreciation		12,112		9,697		23,252		18,728
Amortization		13,907		14,241		27,392		28,098
Total costs and expenses		63,639		52,383		119,505		102,867
Operating income	$	2,309	$	2,721	$	6,660	$	7,513

(1)	Exclusive of depreciation and amortization.

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
FinTech
Revenues
Cash access services	$	39,739	$	175,442	$	77,958	$	347,175
Equipment		4,765		3,697		9,183		5,997
Information services and other		8,230		7,987		16,377		16,215
Total revenues		52,734		187,126		103,518		369,387

Costs and expenses
Cost of revenues⁽¹⁾
Cash access services		2,446		142,445		4,676		281,106
Equipment		3,426		2,212		5,940		3,631
Information services and other		980		810		2,197		1,529
Cost of revenues		6,852		145,467		12,813		286,266

Operating expenses		21,360		18,191		41,540		36,575
Depreciation		1,589		1,699		3,274		3,498
Amortization		2,645		3,198		5,463		6,666
Total costs and expenses		32,446		168,555		63,090		333,005
Operating income	$	20,288	$	18,571	$	40,428	$	36,382

(1)	Exclusive of depreciation and amortization.

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
Total Games and FinTech
Revenues	$	118,682	$	242,230	$	229,683	$	479,767

Costs and expenses
Cost of revenues⁽¹⁾		23,667		158,706		44,551		311,949
Operating expenses		37,570		28,779		69,757		57,772
Research and development		4,595		4,618		8,906		9,161
Depreciation		13,701		11,396		26,526		22,226
Amortization		16,552		17,439		32,855		34,764
Total costs and expenses		96,085		220,938		182,595		435,872

Operating income	$	22,597	$	21,292	$	47,088	$	43,895

(1)	Exclusive of depreciation and amortization.

	At June 30,		At December 31,
	2018		2017
Total assets
Games	$	931,730	$	925,186
FinTech		508,086		611,888
Total assets	$	1,439,816	$	1,537,074

Major Customers. For the three and six months ended June 30, 2018 and 2017, no single customer accounted for more than 10% of our revenues. Our five largest customers accounted for approximately 22% of our revenues for the three and six months ended June 30, 2018, and 26% and 27% for the three and six months ended June 30, 2017, respectively.

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

19.	SUBSEQUENT EVENTS

As of the filing date, we had not identified, and were not aware of, any subsequent event for the period.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

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, 2018 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 our Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

Other than the adoption of ASU 2014-09 and all subsequent amendments (collectively, ASC 606) and Accounting Standards Update (“ASU”) No. 2016-18, there have been no changes to our basis of presentation and significant accounting policies since the most recent filing of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

Overall - Revenue Recognition under ASC 606

Overall – Revenue Recognition

We evaluate the recognition of revenue based on the criteria set forth in ASC 606 and ASC 840, 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 in accordance with ASC 606. We enter into contracts with customers that may include various 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, in accordance with ASC 606.

We evaluate the composition of our revenues to ensure compliance with SEC Regulation S-X Section 210.5-03, which requires us to separately present certain categories of revenues that exceed the quantitative threshold on our Statements of Income (Loss).

Significant Judgments

ASC 606 requires that we apply judgments or estimates to determine the performance obligations and the Stand-Alone Selling Price (“SSP”) of each identified performance obligation. The establishment of SSP requires judgment as to whether there is a sufficient quantity of items sold or renewed on a stand-alone basis and those prices demonstrate an appropriate level of concentration to conclude that a SSP exists. The SSP of our goods and services are generally determined based on observable prices, an adjusted market assessment approach or an expected cost plus margin approach. We only utilize a residual approach when the SSP for performance obligations with observable prices have been established and the remaining performance obligation in the contract with a customer does not have an observable price as it is uncertain or highly variable and, therefore, is not discernable.

Collectability

To assess collectability, we determine whether it is probable that we will collect substantially all of the consideration to which we are entitled in exchange for the goods and services transferred to the customer in accordance with the terms and conditions of the contract. In connection with these procedures, we evaluate the customer using internal and external information available, including, but not limited to, research and analysis of the credit history with the customer. Based on the nature of our transactions and historical trends, we determine whether our customers have the ability and intention to pay the amounts of consideration when they become due to identify potentially significant credit risk exposure.

Contract Combinations - Multiple Promised Goods and Services

Our contracts may include promises to transfer multiple goods and services to a customer. Our Games and FinTech businesses may enter into multiple agreements with the same customer that meet the criteria to be combined for accounting purposes under ASC 606. When this occurs, a SSP will be determined for each performance obligation in the combined arrangement and the consideration allocated between the respective performance obligations. We use our judgment to analyze the nature of the promises made and determine whether each is distinct or should be combined with other promises in the contract based on the level of integration and interdependency between the individual deliverables.

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.”

Outbound Freight Costs

Upon transferring control of a good to a customer, the shipping and handling costs in connection with sale transactions are accounted for as fulfillment costs and included in cost of revenues.

Costs to Acquire a Contract with a Customer

We typically incur incremental costs to acquire customer contracts in the form of sales commission expenses. We evaluate those acquisition costs for groups of contracts with similar characteristics, based on the nature of the transactions. The incremental costs to acquire customer contracts identified would be amortized within one year and, as a result, we elected to utilize the practical expedient set forth in ASC 340-40, Contract Costs – Incremental Costs of Obtaining a Contract to expense these amounts as incurred.

Asset Balances

In connection with the adoption of ASC 606 utilizing the modified retrospective transition method, we recorded an immaterial cumulative adjustment with respect to certain amounts that had been previously deferred under the then existing revenue recognition guidance as of December 31, 2017 that required recognition under ASC 606 as of the effective date of adoption in accumulated deficit.

Games Revenues

Gaming Operations

Games revenues are primarily generated by our gaming operations under placement, participation and development arrangements in which we provide our customers with player terminals, player terminal-content licenses, central determinant systems for devices placed in service in licensed jurisdictions and back-office equipment, collectively referred to herein as leased gaming equipment. We evaluate the recognition of lease revenues based on criteria set forth in ASC 840. Generally, under these arrangements, we retain ownership of the leased gaming equipment installed at customer facilities and we receive revenues based on a percentage of the net win per day generated by the leased gaming equipment or a fixed daily fee based on the number of player terminals installed at the facility. Revenues from lease participation or daily fee arrangements are considered both realizable and earned at the end of each gaming day.

Gaming operations revenues generated by leased gaming equipment deployed at sites under development or placement fee agreements give rise to contract rights, which are amounts recorded to intangible assets for dedicated floor space resulting from such agreements. The gaming operations revenues generated by these arrangements are reduced by the accretion of contract rights, which represents the related amortization of the contract rights recorded in connection with those agreements.

Gaming operations revenues include revenues generated by Wide Area Progressive (“WAP”) systems, which consist of linked slot machines located in multiple casino properties that are connected to a central system. WAP-based gaming machines have a progressive jackpot we administer that increases with every wager until a player wins the top award combination. Casino operators pay us a percentage of the coin-in (the total amount wagered) for services related to the design, assembly, installation, operation, maintenance, administration and marketing of the WAP systems. The gaming operations revenues with respect to WAP-based gaming machines are presented in the Statements of Income (Loss) net of the jackpot expense, which is comprised of incremental amount funded by a portion of the coin-in from players. At such time a jackpot is won by a player, an additional jackpot expense is recorded with respect to the base seed amount required to fund the minimum level required by the respective WAP arrangement with the casino operator.

Gaming Equipment and Systems

Gaming equipment and systems revenues are derived from the sale of gaming equipment to our customers under contracts on standard credit terms, which are generally short-term in nature, and are recognized at a point in time when control of the promised goods and services transfers to the customer generally upon shipment or delivery pursuant to the terms of the contract.

Gaming Other

Gaming other revenues primarily consist of our TournEvent of Champions® national tournament and are recognized over a period of time as the customer simultaneously receives and consumes the benefits.

FinTech Revenues

Cash Access Services

Cash access services revenues are comprised of cash advance, ATM and check services revenue streams. We do not control the cash advance and ATM services provided to a customer and, therefore, we are acting as an agent whose performance obligation is to arrange for the provision of these services.

Cash advance revenues are comprised of transaction fees assessed to gaming patrons in connection with credit card cash access and POS debit card cash access transactions. Such fees are primarily based on a combination of a fixed amount plus a percentage of the face amount of the credit card cash access or POS debit card cash access transaction amount. In connection with these types of transactions, we report certain direct costs incurred as reductions to revenues on a net basis, which generally include: (i) commission expenses payable to casino operators; (ii) interchange fees payable to the network associations; and (iii) processing and related costs payable to other third party partners.

ATM revenues are primarily comprised of transaction fees in the form of cardholder surcharges assessed to gaming patrons in connection with ATM cash withdrawals at the time the transactions are authorized and reverse interchange fees paid to us by the patrons’ issuing banks. The cardholder surcharges assessed to gaming patrons in connection with ATM cash withdrawals are currently a fixed dollar amount and not a percentage of the transaction amount. In connection with these types of transactions, we report certain direct costs incurred as reductions to revenues on a net basis, which generally include: (i) commission expenses payable to casino operators; (ii) interchange fees payable to the network associations; and (iii) processing and related costs payable to other third party partners.

Check services revenues are principally comprised of check warranty revenues and are generally based upon a percentage of the face amount of checks warranted. These fees are paid to us by gaming establishments.

For cash access services arrangements, we recognize revenues over a period of time using an output method depicting the transfer of control to the customer based on variable consideration, such as volume of transactions processed with variability generally resolved in the reporting period.

Equipment

Equipment revenues are derived from the sale of equipment under contracts with standard credit terms, which are generally short-term in nature, and are recognized at a point in time when control of the promised goods and services transfers to the customer generally upon shipment or delivery pursuant to the terms of the contract.

Information Services and Other

Information services and other revenues include amounts derived from the sale of: (i) software licenses, software subscriptions, professional services and certain other ancillary fees; (ii) service related fees associated with the sale, installation and maintenance of equipment directly to our customers under contracts on standard credit terms, which are generally short-term in nature, secured by the related equipment, (iii) credit worthiness related software subscription services that are based upon either a flat monthly unlimited usage fee or a variable fee structure driven by the volume of patron credit histories generated; and (iv) ancillary marketing, database and internet-based gaming related activities.

Our software represents a functional right-to-use license and the revenues are recognized at a point in time. Subscription services represent a stand-ready performance obligation and the revenues are recognized over a period of time using an input method based on time elapsed. Professional and other services revenues are recognized over a period of time using an input method based on time elapsed as services are provided, thereby reflecting the transfer of control to the customer.

Restricted Cash

Our restricted cash primarily consists of: (i) deposits held in connection with a sponsorship agreement; (ii) WAP-related restricted funds; and (iii) Internet related cash access activities. The current portion of restricted cash, which is included in prepaid expenses and other assets, was approximately $0.9 million as of June 30, 2018 and December 31, 2017. The non-current portion of restricted cash, which is included in other assets, was approximately $0.1 million as of June 30, 2018 and December 31, 2017. The current portion of restricted cash was approximately $0.5 million and $0.3 million as of June 30, 2017 and December 31, 2016, respectively. The non-current portion of restricted cash was approximately $0.1 million as of June 30, 2017 and December 31, 2016.

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, settlement receivables, short-term trade and other receivables, settlement liabilities, accounts payable and accrued expenses approximates 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. As of June 30, 2018 and December 31, 2017, the fair value of notes receivable, net, approximated the carrying value due to contractual terms of trade and loans receivable generally being under 24 months. The fair value of our borrowings is estimated based on various inputs to determine a market price, such as: market demand and supply, size of tranche, maturity and similar instruments trading in more active markets. The estimated fair value and outstanding balances of our borrowings are as follows (in thousands).

	Level of Hierarchy	Fair Value		Outstanding Balance
June 30, 2018
Term loan	2	$	815,372	$	811,800
Senior unsecured notes	1	$	375,938	$	375,000

December 31, 2017
Term loan	2	$	826,099	$	815,900
Senior unsecured notes	1	$	372,656	$	375,000

The term loan facility was reported at fair value using a Level 2 input as there were quoted prices in markets that were not considered active as of June 30, 2018 and December 31, 2017. The senior unsecured notes were reported at fair value using a Level 1 input as there were quoted prices in markets that were considered active as of June 30, 2018 and December 31, 2017.

Reclassification of Prior Year Balances

Reclassifications were made to the prior-period Financial Statements to conform to the current period presentation, except for the adoption impact of the application of ASC 606 utilizing the modified retrospective transition method.

Recent Accounting Guidance

Recently Adopted Accounting Guidance

In March 2018, the FASB issued ASU No. 2018-05, which provides guidance on accounting for the tax effects of the 2017 Tax Act (pursuant to SEC Staff Accounting Bulletin No. 118). The new standard is effective March 13, 2018. We have adopted this guidance in the quarter ended March 31, 2018. In accordance with this guidance, some of the income tax effects recorded in 2017 are provisional and they may be adjusted during 2018.

In May 2014, the FASB issued ASU No. 2014-09, which creates ASC 606 and supersedes ASC Topic 605, “Revenue Recognition.” The guidance replaces industry-specific guidance and establishes a single five-step model to identify and recognize revenue. The core principle of the guidance is that an entity should recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires the entity to disclose further quantitative and qualitative information regarding the nature and amount of revenues arising from contracts with customers, as well as other information about the significant judgments and estimates used in recognizing revenues from contracts with customers. The guidance in ASU 2014-09 was further updated by ASU 2016-08 in March 2016, which provided clarification on the implementation of the principal versus agent considerations in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, which provides clarification on the implementation of performance obligations and licensing in ASU 2014-09. In May 2016, the FASB issued ASU 2016-11, which amended guidance provided in two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force meeting over various topics relating to ASU 606. In May 2016, the FASB issued ASU 2016-12, which clarified various topics in ASC 606. In December 2016, the FASB issued ASU 2016-20, which clarified additional topics in ASC 606. This guidance may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. We adopted this guidance effective January 1, 2018 and have provided additional information with respect to the new revenue recognition topic elsewhere in this Note 2 disclosure and also in “Note 3 — Adoption of ASC 606, Revenue from Contracts with Customers.”

In May 2017, the FASB issued ASU No. 2017-09 to clarify which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. An entity is required to account for the effects of a modification unless all of the following conditions are met: (i) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or value using an alternative measurement method) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. We adopted this guidance in the quarter ended March 31, 2018. The adoption of this ASU did not have a material impact on our Financial Statements.

In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance is to be applied using a prospective approach as of the beginning of the first period of adoption. We adopted this guidance in the quarter ended March 31, 2018. The adoption of this ASU did not have a material impact on our Financial Statements.

In October 2016, the FASB issued ASU No. 2016-18, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. We adopted this guidance in the quarter ended March 31, 2018 using a retrospective approach to each period presented. The adoption of this ASU did not have a material impact on our Financial Statements.

In October 2016, the FASB issued ASU No. 2016-16, which provides updated guidance on the recognition of the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs, and this eliminates the exception for an intra-entity transfer of such assets. This guidance will be applied using a modified retrospective approach through a cumulative-effective adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted this guidance in the quarter ended March 31, 2018. The adoption of this ASU did not have a material impact on our Financial Statements.

In August 2016, the FASB issued ASU No. 2016-15, which provides updated guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. This guidance is to be applied using a retrospective approach. If it is impracticable to apply the amendments retrospectively for some of the issues within this ASU, the amendments for those issues would be applied prospectively as of the earliest date practicable. We adopted this guidance in the quarter ended March 31, 2018. The adoption of this ASU did not have a material impact on our Financial Statements.

Recent Accounting Guidance Not Yet Adopted

In June 2018, the FASB issued ASU No. 2018-07, which expands the scope of Topic 718, Compensation—Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of this ASU to have a material impact on our Financial Statements. We are currently evaluating the impact of adopting this guidance on our Financial Statements.

In February 2018, the FASB issued ASU No. 2018-02, which provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of this ASU to have a material impact on our Financial Statements. We are currently evaluating the impact of adopting this guidance on our Financial Statements.

In June 2016, the FASB issued ASU No. 2016-13, which provides updated guidance on credit losses for financial assets measured at amortized cost basis and available-for sale debt securities. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This guidance will be applied using a modified retrospective approach for the cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective and using a prospective approach for debt securities for which any other-than-temporary impairment had been recognized before the effective date. Early adoption is permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of adopting this guidance on our Financial Statements.

In February 2016, the FASB issued ASU No. 2016-02, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. The ASU establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For lessees, leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. In July, 2018, the FASB issued ASU No. 2018-10 - Codification Improvements to Topic 842, Leases and ASU No. 2018-11 - Leases (Topic 842): Targeted Improvements. ASU No. 2018-10 affects narrow aspects of the guidance previously issued and ASU No. 2018-11 provides a practical expedient for lessors on separating components of a contract and includes an additional transition method for adopting the new standard. We plan to adopt the new standard on January 1, 2019. The guidance requires an entity to adopt the new standard, as amended, either retrospectively to each prior reporting period presented in the financial statements with the cumulative effect recognized at the beginning of the earliest comparative period or retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment, with certain practical expedients available. While we are currently assessing the impact of this ASU on our financial statements, including selecting the transition method, we expect the primary impact to our consolidated balance sheet will be the recognition of our operating leases on our balance sheets and providing disclosures as required by the new standard.

We do not expect that any other recently issued accounting guidance will have a significant effect on our consolidated financial statements.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of Estimated Fair Value and Outstanding Balances of Borrowings

The estimated fair value and outstanding balances of our borrowings are as follows (in thousands).

	Level of Hierarchy	Fair Value		Outstanding Balance
June 30, 2018
Term loan	2	$	815,372	$	811,800
Senior unsecured notes	1	$	375,938	$	375,000

December 31, 2017
Term loan	2	$	826,099	$	815,900
Senior unsecured notes	1	$	372,656	$	375,000

ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

6 Months Ended

Jun. 30, 2018

Adoption of ASC Topic 606

Impact of Adopting ASC 606 on Financial Statements

The following table presents the impact of the application of ASC 606 utilizing the modified retrospective transition method to certain line items on our Unaudited Condensed Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2018 (in thousands):

	Three Months Ended June 30, 2018
							Without Adoption
	As reported			Adjustments			of ASC 606
Revenues
Games revenues
Gaming operations	$	43,022		$	619		$	43,641
Games total revenues		65,948			619			66,567

FinTech revenues
Cash access services		39,739			155,000			194,739
Equipment		4,765			(2,261	)		2,504
FinTech total revenues		52,734			152,739			205,473

Total revenues		118,682			153,358			272,040

Costs and expenses
Games cost of revenues⁽¹⁾
Gaming operations		4,211			619			4,830
Games total cost of revenues		16,815			619			17,434

FinTech cost of revenues⁽¹⁾
Cash access services		2,446			155,000			157,446
Equipment		3,426			—			3,426
FinTech total cost of revenues		6,852			155,000			161,852

Total costs and expenses		96,085			155,619			251,704

Operating income		22,597			(2,261	)		20,336

Income before income tax		309			(2,261	)		(1,952	)

Income tax benefit		(1,166	)		—			(1,166	)
Net income		1,475			(2,261	)		(786	)

Comprehensive income		417			(2,261	)		(1,844	)

(1)	Exclusive of depreciation and amortization.

The adoption of ASC 606 utilizing the modified retrospective transition method did not have a material impact to our Balance Sheets and Cash Flows as of and for the three months ended June 30, 2018.

	Six Months Ended June 30, 2018
							Without Adoption
	As reported			Adjustments			of ASC 606
Revenues
Games revenues
Gaming operations	$	83,078		$	1,081		$	84,159
Games total revenues		126,165			1,081			127,246

FinTech revenues
Cash access services		77,958			310,448			388,406
Equipment		9,183			(2,472	)		6,711
FinTech total revenues		103,518			307,976			411,494

Total revenues		229,683			309,057			538,740

Costs and expenses
Games cost of revenues⁽¹⁾
Gaming operations		8,393			1,081			9,474
Games total cost of revenues		31,738			1,081			32,819

FinTech cost of revenues⁽¹⁾
Cash access services		4,676			309,899			314,575
Equipment		5,940			(85	)		5,855
FinTech total cost of revenues		12,813			309,814			322,627

Total costs and expenses		182,595			310,895			493,490

Operating income		47,088			(1,838	)		45,250

Income before income tax		4,493			(1,838	)		2,655

Income tax benefit		(1,591	)		—			(1,591	)
Net income		6,084			(1,838	)		4,246

Comprehensive income		5,349			(1,838	)		3,511

(1)	Exclusive of depreciation and amortization.

The adoption of ASC 606 utilizing the modified retrospective transition method did not have a material impact to our Balance Sheets and Cash Flows as of and for the six months ended June 30, 2018.

TRADE AND OTHER RECEIVABLES (Tables)

6 Months Ended

Jun. 30, 2018

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,
	2018			2017
Trade and other receivables, net
Games trade and loans receivables	$	47,815		$	38,070
FinTech trade and loans receivables⁽¹⁾		21,139			10,780
Other receivables		1,302			1,570
Total trade and other receivables, net		70,256			50,420
Less: non-current portion of receivables
Games trade and loans receivables		(2,515	)		(1,267	)
FinTech trade and loans receivables⁽¹⁾		(6,158	)		(1,371	)
Total non-current portion of receivables		(8,673	)		(2,638	)
Total trade and other receivables, current portion	$	61,583		$	47,782

(1)

In connection with the adoption of ASC 606 utilizing the modified retrospective transition method, we recorded an immaterial cumulative adjustment with respect to certain amounts that had been previously deferred under the then existing revenue recognition guidance as of December 31, 2017 that required recognition under ASC 606 as of the effective date of adoption in accumulated deficit.

INVENTORY (Tables)

6 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Schedule of components of inventory

Inventory consisted of the following (in thousands):

	At June 30,		At December 31,
	2018		2017
Inventory
Component parts, net of reserves of $1,563 and $1,327 at June 30, 2018 and December 31, 2017, respectively	$	18,598	$	18,782
Work-in-progress		1,389		985
Finished goods		3,540		4,200
Total inventory	$	23,527	$	23,967

PREPAID AND OTHER ASSETS (Tables)

6 Months Ended

Jun. 30, 2018

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 and other assets consisted of the following (in thousands):

	At June 30,		At December 31,
	2018		2017
Prepaid expenses and other assets
Deposits	$	7,093	$	9,003
Prepaid expenses		10,065		6,426
Other		2,605		5,241
Total prepaid expenses and other assets	$	19,763	$	20,670

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,
	2018		2017
Other assets
Prepaid expenses and deposits	$	5,144	$	4,103
Debt issuance costs of revolving credit facility		752		849
Other		341		2,657
Total other assets	$	6,237	$	7,609

PROPERTY, EQUIPMENT AND LEASED ASSETS (Tables)

6 Months Ended

Jun. 30, 2018

Property Plant And Equipment [Abstract]

Schedule of components of property, equipment and leased assets

Property, equipment and leased assets consist of the following (in thousands):

		At June 30, 2018						At December 31, 2017
	Useful Life			Accumulated		Net Book				Accumulated		Net Book
	(Years)	Cost		Depreciation		Value		Cost		Depreciation		Value
Property, equipment and leased assets
Rental pool - deployed	2-4	$	180,323	$	92,065	$	88,258	$	162,319	$	80,895	$	81,424
Rental pool - undeployed	2-4		30,418		21,424		8,994		17,366		9,374		7,992
FinTech equipment	3-5		27,142		20,583		6,559		25,907		18,654		7,253
Leasehold and building improvements	Lease Term		11,339		6,103		5,236		10,981		5,211		5,770
Machinery, office and other equipment	2-5		41,082		26,781		14,301		35,167		24,087		11,080
Total		$	290,304	$	166,956	$	123,348	$	251,740	$	138,221	$	113,519

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of other intangible assets

Other intangible assets consist of the following (in thousands):

			At June 30, 2018						At December 31, 2017
	Weighted Average
	Remaining Life				Accumulated		Net Book				Accumulated		Net Book
	(years)		Cost		Amortization		Value		Cost		Amortization		Value
Other intangible assets
Contract rights under placement fee agreements		4	$	57,594	$	8,088	$	49,506	$	57,231	$	3,910	$	53,321
Customer contracts		6		51,175		44,900		6,275		51,175		43,638		7,537
Customer relationships		8		231,100		74,136		156,964		231,100		63,653		167,447
Developed technology and software		2		264,369		175,488		88,881		249,064		158,919		90,145
Patents, trademarks and other		4		29,168		24,147		5,021		29,046		23,185		5,861
Total			$	633,406	$	326,759	$	306,647	$	617,616	$	293,305	$	324,311

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)

6 Months Ended

Jun. 30, 2018

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,
	2018		2017
Accounts payable and accrued expenses
Trade accounts payable	$	64,946	$	59,435
Placement fees⁽¹⁾		22,328		22,328
Accrued interest		1,481		5,766
Deferred and unearned revenues		15,166		10,450
Cash access processing and related expenses		6,562		8,932
Payroll and related expenses		11,009		14,178
Accrued taxes		1,874		2,112
Other		9,130		11,303
Total accounts payable and accrued expenses	$	132,496	$	134,504

(1)

The total outstanding balance of the placement fee liability as of June 30, 2018 and December 31, 2017 was $27.9 million and $39.1 million, respectively. The remaining $5.6 million and $16.8 million of non-current placement fees as of June 30, 2018 and December 31, 2017, respectively, was included in other accrued expenses and liabilities in our Balance Sheets.

LONG-TERM DEBT (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule of outstanding indebtedness

The following table summarizes our outstanding indebtedness (in thousands):

	At June 30,			At December 31,
	2018			2017
Long-term debt
Senior secured term loan	$	811,800		$	815,900
Senior unsecured notes		375,000			375,000
Total debt		1,186,800			1,190,900
Less: debt issuance costs and discount		(21,203	)		(23,057	)
Total debt after debt issuance costs and discount		1,165,597			1,167,843
Less: current portion of long-term debt		(8,200	)		(8,200	)
Long-term debt, less current portion	$	1,157,397		$	1,159,643

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

WEIGHTED AVERAGE COMMON SHARES (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Schedule of weighted average number of common shares outstanding used in computation of basic and diluted earnings per share

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Weighted average shares
Weighted average number of common shares outstanding - basic		69,203		66,350		68,946		66,221
Potential dilution from equity awards⁽¹⁾		4,237		—		4,377		—
Weighted average number of common shares outstanding - diluted⁽¹⁾		73,440		66,350		73,323		66,221

(1)

The potential dilution excludes the weighted average effect of equity awards to purchase 8.6 million and 8.1 million shares of common stock for the three and six months ended June 30, 2018, respectively, because the application of the treasury stock method, as required, makes them anti-dilutive. Company was in a net loss position for the three and six months ended June 30, 2017; therefore, potentially dilutive common shares were excluded as their effects would be anti-dilutive under the application of the treasury stock method. Equity awards to purchase approximately 11.9 million and 15.3 shares of common stock for the three and six months ended June 30, 2017 were excluded from the diluted net loss per share results.

SHARE-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2018

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of award activity

A summary of award activity is as follows (in thousands):

	Stock Options			Restricted Stock			Restricted Stock
	Granted			Awards Granted			Units Granted
Outstanding, December 31, 2017		19,131			74			—
Granted		—			—			1,838
Exercised options or vested shares		(1,288	)		(22	)		—
Cancelled or forfeited		(1,209	)		—			(5	)
Outstanding, June 30, 2018		16,634			52			1,833

Summary of options activity

The following table presents the options activity:

						Weighted
	Number of			Weighted Average		Average Life		Aggregate
	Options			Exercise Price		Remaining		Intrinsic Value
	(in thousands)			(per share)		(years)		(in thousands)
Outstanding, December 31, 2017		19,131		$	5.34		6.4	$	45,887
Granted		—		$	—
Exercised		(1,288	)	$	4.94
Canceled or forfeited		(1,209	)	$	5.77
Outstanding, June 30, 2018		16,634		$	5.34		6.5	$	36,771
Vested and expected to vest, June 30, 2018		15,355		$	5.39		6.5	$	33,418
Exercisable, June 30, 2018		10,101		$	6.06		5.9	$	16,376

Summary of non-vested share awards for time-based restricted stock

The following is a summary of non-vested share awards for our time-based restricted stock:

				Weighted
	Shares			Average Grant
	Outstanding			Date Fair Value
	(in thousands)			(per share)
Outstanding, December 31, 2017		74		$	7.00
Granted		—		$	—
Vested		(22	)	$	6.91
Forfeited		—		$	—
Outstanding, June 30, 2018		52		$	7.04

Time Based Options

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Schedule assumptions used to determine fair value

There were no time-based or market-based option awards granted during the six months ended June 30, 2018.

The fair values of our standard time-based options were determined as of the date of grant using the Black-Scholes option pricing model with the following assumptions:

	Six Months Ended
	June 30,
	2017
Risk-free interest rate		2	%
Expected life of options (in years)		6
Expected volatility		54	%
Expected dividend yield		—	%

Market Performance Based Options

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Schedule assumptions used to determine fair value

The fair values of our market-based options were determined as of the date of grant using a lattice-based option valuation model with the following assumptions:

	Six Months Ended
	June 30,
	2017
Risk-free interest rate		3	%
Measurement period (in years)		10
Expected volatility		70	%
Expected dividend yield		—	%

Restricted Stock Units

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of non-vested share awards for time-based restricted stock

The following is a summary of non-vested RSU awards:

				Weighted		Weighted
	Shares			Average Grant		Average Life		Aggregate
	Outstanding			Date Fair Value		Remaining		Intrinsic Value
	(in thousands)			(per share)		(years)		(in thousands)
Outstanding, December 31, 2017		—		$	—
Granted		1,838		$	7.49
Vested		—		$	—
Forfeited		(5	)	$	7.47
Outstanding, June 30, 2018		1,833		$	7.49		2.5	$	13,195
Vested and expected to vest, June 30, 2018		1,125		$	7.49		2.3	$	8,099
Exercisable, June 30, 2018		—		$	—		—	$	—

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Schedule of segment information

The following tables present segment information (in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
Games
Revenues
Gaming operations	$	43,022	$	36,869	$	83,078	$	73,400
Gaming equipment and systems		22,278		17,557		42,431		36,281
Gaming other		648		678		656		699
Total revenues		65,948		55,104		126,165		110,380

Costs and expenses
Cost of revenues⁽¹⁾
Gaming operations		4,211		3,963		8,393		7,171
Gaming equipment and systems		12,045		8,740		22,786		17,976
Gaming other		559		536		559		536
Games total cost of revenues		16,815		13,239		31,738		25,683

Operating expenses		16,210		10,588		28,217		21,197
Research and development		4,595		4,618		8,906		9,161
Depreciation		12,112		9,697		23,252		18,728
Amortization		13,907		14,241		27,392		28,098
Total costs and expenses		63,639		52,383		119,505		102,867
Operating income	$	2,309	$	2,721	$	6,660	$	7,513

(1)	Exclusive of depreciation and amortization.

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
FinTech
Revenues
Cash access services	$	39,739	$	175,442	$	77,958	$	347,175
Equipment		4,765		3,697		9,183		5,997
Information services and other		8,230		7,987		16,377		16,215
Total revenues		52,734		187,126		103,518		369,387

Costs and expenses
Cost of revenues⁽¹⁾
Cash access services		2,446		142,445		4,676		281,106
Equipment		3,426		2,212		5,940		3,631
Information services and other		980		810		2,197		1,529
Cost of revenues		6,852		145,467		12,813		286,266

Operating expenses		21,360		18,191		41,540		36,575
Depreciation		1,589		1,699		3,274		3,498
Amortization		2,645		3,198		5,463		6,666
Total costs and expenses		32,446		168,555		63,090		333,005
Operating income	$	20,288	$	18,571	$	40,428	$	36,382

(1)	Exclusive of depreciation and amortization.

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
Total Games and FinTech
Revenues	$	118,682	$	242,230	$	229,683	$	479,767

Costs and expenses
Cost of revenues⁽¹⁾		23,667		158,706		44,551		311,949
Operating expenses		37,570		28,779		69,757		57,772
Research and development		4,595		4,618		8,906		9,161
Depreciation		13,701		11,396		26,526		22,226
Amortization		16,552		17,439		32,855		34,764
Total costs and expenses		96,085		220,938		182,595		435,872

Operating income	$	22,597	$	21,292	$	47,088	$	43,895

(1)	Exclusive of depreciation and amortization.

	At June 30,		At December 31,
	2018		2017
Total assets
Games	$	931,730	$	925,186
FinTech		508,086		611,888
Total assets	$	1,439,816	$	1,537,074

BUSINESS (Details)	6 Months Ended
BUSINESS (Details)	Jun. 30, 2018 Segment
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of operating segments	2
Effective date of change in operating segments name	Apr. 01, 2018

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Current restricted cash	$ 0.9	$ 0.9	$ 0.5	$ 0.3
Restricted Cash, Current, Asset, Statement of Financial Position [Extensible List]	us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember	us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember
Non-current restricted cash	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Restricted Cash, Noncurrent, Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherNoncurrentAssetsMember	us-gaap:OtherNoncurrentAssetsMember
Maximum
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Amortization period of costs to acquire a contract with a customer	1 year
Contractual terms of trade and loans receivable	24 months

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Fair Value and Outstanding Balances of Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value \| Level 2 \| Term Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	$ 815,372	$ 826,099
Fair Value \| Level 1 \| Senior unsecured notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	375,938	372,656
Outstanding Balance \| Level 2 \| Term Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	811,800	815,900
Outstanding Balance \| Level 1 \| Senior unsecured notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	$ 375,000	$ 375,000

ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Revenue From Contract With Customer [Line Items]
Cumulative adjustment to accumulated deficit upon adoption of ASC 606	$ 235,741		$ 246,202
Adoption of ASC Topic 606 \| Adjustments
Revenue From Contract With Customer [Line Items]
Cumulative adjustment to accumulated deficit upon adoption of ASC 606		$ 4,400

ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS - Impact of Adopting ASC 606 on Statement of Income and Comprehensive Income (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2018

Jun. 30, 2017

Revenue From Contract With Customer [Line Items]

$ 118,682

$ 242,230

$ 229,683

$ 479,767

96,085

182,595

22,597

21,292

47,088

43,895

Income before income tax

309

(17,204)

4,493

(19,658)

Income tax benefit

(1,166)

1,853

(1,591)

2,907

Revenue From Contract With Customer [Line Items]

1,475

(19,057)

6,084

(22,565)

Comprehensive income

417

(18,221)

5,349

(21,457)

Games

65,948

55,104

126,165

110,380

^[1]

16,815

13,239

31,738

25,683

Games | Gaming operations

2,309

2,721

6,660

7,513

Revenue From Contract With Customer [Line Items]

43,022

36,869

83,078

73,400

Revenue From Contract With Customer [Line Items]

4,211

3,963

8,393

7,171

FinTech

52,734

187,126

103,518

369,387

^[1]

6,852

145,467

12,813

286,266

FinTech | Cash access services

20,288

18,571

40,428

36,382

Revenue From Contract With Customer [Line Items]

39,739

175,442

77,958

347,175

Revenue From Contract With Customer [Line Items]

2,446

142,445

4,676

281,106

FinTech | Equipment

4,765

3,697

9,183

5,997

Adoption of ASC Topic 606 | Adjustments

3,426

$ 2,212

5,940

$ 3,631

Revenue From Contract With Customer [Line Items]

153,358

309,057

155,619

310,895

(2,261)

(1,838)

Income before income tax

(2,261)

(1,838)

Adoption of ASC Topic 606 | Without Adoption of ASC 606

(2,261)

(1,838)

Comprehensive income

(2,261)

(1,838)

Revenue From Contract With Customer [Line Items]

272,040

538,740

251,704

493,490

20,336

45,250

Income before income tax

(1,952)

2,655

Income tax benefit

(1,166)

(1,591)

Adoption of ASC Topic 606 | Games | Adjustments

(786)

4,246

Comprehensive income

(1,844)

3,511

Revenue From Contract With Customer [Line Items]

619

1,081

Adoption of ASC Topic 606 | Games | Adjustments | Gaming operations

619

1,081

Revenue From Contract With Customer [Line Items]

619

1,081

Adoption of ASC Topic 606 | Games | Without Adoption of ASC 606

619

1,081

Revenue From Contract With Customer [Line Items]

66,567

127,246

Adoption of ASC Topic 606 | Games | Without Adoption of ASC 606 | Gaming operations

17,434

32,819

Revenue From Contract With Customer [Line Items]

43,641

84,159

Adoption of ASC Topic 606 | FinTech | Adjustments

4,830

9,474

Revenue From Contract With Customer [Line Items]

152,739

307,976

Adoption of ASC Topic 606 | FinTech | Adjustments | Cash access services

155,000

309,814

Revenue From Contract With Customer [Line Items]

155,000

310,448

Adoption of ASC Topic 606 | FinTech | Adjustments | Equipment

155,000

309,899

Revenue From Contract With Customer [Line Items]

(2,261)

(2,472)

Adoption of ASC Topic 606 | FinTech | Without Adoption of ASC 606

(85)

Revenue From Contract With Customer [Line Items]

205,473

411,494

Adoption of ASC Topic 606 | FinTech | Without Adoption of ASC 606 | Cash access services

161,852

322,627

Revenue From Contract With Customer [Line Items]

194,739

388,406

Adoption of ASC Topic 606 | FinTech | Without Adoption of ASC 606 | Equipment

157,446

314,575

Revenue From Contract With Customer [Line Items]

2,504

6,711

$ 3,426

$ 5,855

[1]	Exclusive of depreciation and amortization.

FUNDING AGREEMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
FUNDING AGREEMENTS (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Funding Agreements
Site-funded ATM liability	$ 150,900,000		$ 150,900,000		$ 210,800,000
Cash supplied for Canadian ATMs	6,900,000		6,900,000		6,900,000
Contract Cash Solutions Agreement \| Indemnification Guarantee
Funding Agreements
Outstanding balance	225,300,000		225,300,000		289,800,000
Contract Cash Solutions Agreement \| Indemnification Guarantee \| Interest expense
Funding Agreements
Cash usage fees incurred	2,000,000	$ 1,200,000	3,700,000	$ 2,400,000
Contract Cash Solutions Agreement, as amended \| Indemnification Guarantee
Funding Agreements
Maximum amount	300,000,000		300,000,000
Ability to increase maximum amount			$ 75,000,000
Expiration date			Jun. 30, 2020
Prefunded Cash Access Agreements \| Prepaid expenses and other assets
Funding Agreements
Prefunded cash	$ 6,000,000		$ 6,000,000		$ 8,400,000

TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Trade and other receivables, net
Other receivables	$ 1,302	$ 1,570
Total trade and other receivables, net	70,256	50,420
non-current portion of receivables	(8,673)	(2,638)
Total trade and other receivables, current portion	61,583	47,782
Allowances for doubtful accounts	5,438	4,706
Check Warranty Reserves
Trade and other receivables, net
Allowances for doubtful accounts	2,800	2,700
General Reserves
Trade and other receivables, net
Allowances for doubtful accounts	2,600	2,000
Gaming operations
Trade and other receivables, net
Trade receivables, net	47,815	38,070
non-current portion of receivables	(2,515)	(1,267)
FinTech
Trade and other receivables, net
Trade receivables, net	21,139	10,780
non-current portion of receivables	$ (6,158)	$ (1,371)

INVENTORY (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
INVENTORY (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Inventory [Line Items]
Component parts, net of reserves of $1,563 and $1,327 at June 30, 2018 and December 31, 2017, respectively	$ 18,598	$ 18,598	$ 18,782
Work-in-progress	1,389	1,389	985
Finished goods	3,540	3,540	4,200
Total inventory	23,527	23,527	23,967
Component parts, reserves	1,563	1,563	$ 1,327
Games
Inventory [Line Items]
Impairment charge to reduce carrying value to fair value of assets	$ 1,800	$ 1,800

PREPAID AND OTHER ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Deposits	$ 7,093	$ 9,003
Prepaid expenses	10,065	6,426
Other	2,605	5,241
Total prepaid expenses and other assets	19,763	20,670
Prepaid expenses and deposits	5,144	4,103
Debt issuance costs of revolving credit facility	752	849
Other	341	2,657
Total other assets	$ 6,237	$ 7,609

PROPERTY, EQUIPMENT AND LEASED ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Property Plant And Equipment [Line Items]
Cost	$ 290,304,000		$ 290,304,000		$ 251,740,000
Accumulated Depreciation	166,956,000		166,956,000		138,221,000
Net Book Value	123,348,000		123,348,000		113,519,000
Depreciation	13,701,000	$ 11,396,000	26,526,000	$ 22,226,000
Impairment of property, equipment and leased assets	0		0
Games
Property Plant And Equipment [Line Items]
Depreciation	12,112,000	$ 9,697,000	23,252,000	$ 18,728,000
Impairment charge to reduce carrying value to fair value of assets	1,800,000		1,800,000
Games \| Property, Equipment and Leased Assets
Property Plant And Equipment [Line Items]
Impairment charge to reduce carrying value to fair value of assets	800,000		800,000
Rental pool - deployed
Property Plant And Equipment [Line Items]
Cost	180,323,000		180,323,000		162,319,000
Accumulated Depreciation	92,065,000		92,065,000		80,895,000
Net Book Value	88,258,000		$ 88,258,000		81,424,000
Rental pool - deployed \| Minimum
Property Plant And Equipment [Line Items]
Useful Life (years)			2 years
Rental pool - deployed \| Maximum
Property Plant And Equipment [Line Items]
Useful Life (years)			4 years
Rental pool - undeployed
Property Plant And Equipment [Line Items]
Cost	30,418,000		$ 30,418,000		17,366,000
Accumulated Depreciation	21,424,000		21,424,000		9,374,000
Net Book Value	8,994,000		$ 8,994,000		7,992,000
Rental pool - undeployed \| Minimum
Property Plant And Equipment [Line Items]
Useful Life (years)			2 years
Rental pool - undeployed \| Maximum
Property Plant And Equipment [Line Items]
Useful Life (years)			4 years
FinTech equipment
Property Plant And Equipment [Line Items]
Cost	27,142,000		$ 27,142,000		25,907,000
Accumulated Depreciation	20,583,000		20,583,000		18,654,000
Net Book Value	6,559,000		$ 6,559,000		7,253,000
FinTech equipment \| Minimum
Property Plant And Equipment [Line Items]
Useful Life (years)			3 years
FinTech equipment \| Maximum
Property Plant And Equipment [Line Items]
Useful Life (years)			5 years
Leasehold and building improvements
Property Plant And Equipment [Line Items]
Cost	11,339,000		$ 11,339,000		10,981,000
Accumulated Depreciation	6,103,000		6,103,000		5,211,000
Net Book Value	5,236,000		5,236,000		5,770,000
Machinery, office and other equipment
Property Plant And Equipment [Line Items]
Cost	41,082,000		41,082,000		35,167,000
Accumulated Depreciation	26,781,000		26,781,000		24,087,000
Net Book Value	$ 14,301,000		$ 14,301,000		$ 11,080,000
Machinery, office and other equipment \| Minimum
Property Plant And Equipment [Line Items]
Useful Life (years)			2 years
Machinery, office and other equipment \| Maximum
Property Plant And Equipment [Line Items]
Useful Life (years)			5 years

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 640,560,000		$ 640,560,000		$ 640,589,000
Impairment of goodwill	$ 0	$ 0	$ 0	$ 0

GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Finite Lived Intangible Assets [Line Items]
Cost	$ 633,406		$ 633,406		$ 617,616
Accumulated Amortization	326,759		326,759		293,305
Net Book Value	306,647		306,647		324,311
Amortization of Intangible Assets	16,600	$ 17,400	$ 32,900	$ 34,800
Contract rights under placement fee agreements
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (years)			4 years
Cost	57,594		$ 57,594		57,231
Accumulated Amortization	8,088		8,088		3,910
Net Book Value	49,506		$ 49,506		53,321
Customer contracts
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (years)			6 years
Cost	51,175		$ 51,175		51,175
Accumulated Amortization	44,900		44,900		43,638
Net Book Value	6,275		$ 6,275		7,537
Customer relationships
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (years)			8 years
Cost	231,100		$ 231,100		231,100
Accumulated Amortization	74,136		74,136		63,653
Net Book Value	156,964		$ 156,964		167,447
Developed technology and software
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (years)			2 years
Cost	264,369		$ 264,369		249,064
Accumulated Amortization	175,488		175,488		158,919
Net Book Value	88,881		$ 88,881		90,145
Patents, trademarks and other
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (years)			4 years
Cost	29,168		$ 29,168		29,046
Accumulated Amortization	24,147		24,147		23,185
Net Book Value	$ 5,021		$ 5,021		$ 5,861

GOODWILL AND OTHER INTANGIBLE ASSETS - Placement Fee Agreements (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Funding Agreements
Cash payment made	$ 5.9	$ 3.0	$ 11.5	$ 3.0
Imputed interest in placement fees	$ 0.4		$ 1.4
Contract rights under development and placement fee agreements \| Minimum
Funding Agreements
General term of the agreement			12 months
Contract rights under development and placement fee agreements \| Maximum
Funding Agreements
General term of the agreement			83 months

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables And Accruals [Abstract]
Trade accounts payable	$ 64,946	$ 59,435
Placement fees	22,328	22,328
Accrued interest	1,481	5,766
Deferred and unearned revenues	15,166	10,450
Cash access processing and related expenses	6,562	8,932
Payroll and related expenses	11,009	14,178
Accrued taxes	1,874	2,112
Other	9,130	11,303
Total accounts payable and accrued expenses	$ 132,496	$ 134,504

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Parenthetical) (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Payables And Accruals [Abstract]
Total outstanding balance of placement fee liability	$ 27.9	$ 39.1
Non-current placement fees	$ 5.6	$ 16.8

LONG-TERM DEBT - Summary of Indebtedness (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Long-term debt
Total debt	$ 1,186,800	$ 1,190,900
Less: debt issuance costs and discount	(21,203)	(23,057)
Total debt after debt issuance costs and discount	1,165,597	1,167,843
Less: current portion of long-term debt	(8,200)	(8,200)
Long-term debt, less current portion	1,157,397	1,159,643
Senior secured term loan
Long-term debt
Total debt	811,800	815,900
Senior unsecured notes
Long-term debt
Total debt	$ 375,000	$ 375,000

LONG-TERM DEBT - Refinancing and New Credit Facilities (Details) - USD ($)			3 Months Ended	6 Months Ended
	May 17, 2018	May 09, 2017	Jun. 30, 2018	Jun. 30, 2018	Nov. 13, 2017	Mar. 31, 2017
Credit Facilities
Write-off of unamortized deferred financing fees and discounts related to the extinguished debt		$ 14,600,000
Prepayment penalties incurred		0
New Credit Agreement, dated May 9, 2017
Credit Facilities
Debt issuance discount		4,100,000
Debt issuance costs		15,500,000
Actual consolidated leverage ratio (as a percent)				342.00%
Maximum allowable consolidated secured leverage ratio as of December 31, 2017 and June 30,2018				500.00%
Maximum allowable consolidated secured leverage ratio as of December 31, 2018 (as a percent)				475.00%
Maximum allowable consolidated secured leverage ratio as of December 31, 2019 (as a percent)				450.00%
Maximum allowable consolidated secured leverage ratio as of December 31, 2020 (as a percent)				4.25%
Maximum allowable consolidated secured leverage ratio as of December 31, 2021 (as a percent)				4.00%
Maximum allowable consolidated secured leverage ratio as of December 31, thereafter (as a percent)				4.00%
Threshold for change of control of parent company (as a percent)				35.00%
New Credit Agreement, dated May 9, 2017 \| Everi Payments Inc.
Credit Facilities
Ownership of equity interests (as a percent)				100.00%
New Credit Agreement, dated May 9, 2017 \| Eurodollar
Credit Facilities
Variable reference rate threshold (as a percent)				0.00%
Variable reference rate (as a percent)				0.00%
7.25% Notes due 2021 (Refinanced Secured Notes) \| Senior secured notes
Credit Facilities
Interest rate (as a percent)						7.25%
Outstanding amount redeemed		335,000,000
New Credit Agreement, dated November 13, 2017
Credit Facilities
Maximum borrowing capacity					$ 818,000,000
Debt issuance costs					$ 3,000,000
New Credit Agreement, dated May 17, 2018
Credit Facilities
Maximum borrowing capacity	$ 813,900,000
Debt issuance costs	$ 1,300,000
Basis points on variable rate	0.50%
New Credit Agreement, dated May 17, 2018 \| LIBOR
Credit Facilities
Interest rate margin (as a percent)	3.50%			3.00%
Libor floor rate	1.00%
New Credit Agreement, dated May 17, 2018 \| Senior secured term loan
Credit Facilities
Percentage of prepayment premium of principal amount of term loan	1.00%
Revolving credit facility \| New Credit Agreement, dated May 9, 2017
Credit Facilities
Maximum borrowing capacity		$ 35,000,000
Term of facility		5 years		5 years
Borrowings outstanding			$ 0	$ 0
Additional borrowing availability			$ 35,000,000	$ 35,000,000
Senior secured term loan facility \| New Credit Agreement, dated May 9, 2017
Credit Facilities
Term of facility		7 years		7 years
Principal amount of debt		$ 820,000,000
Prepayment premium applied to principal amount (as a percent)				1.00%
Required quarterly principal payment, as a percentage of original principal				0.25%
Weighted average interest rate during period (as a percent)			5.24%	5.15%
Outstanding borrowings			$ 811,800,000	$ 811,800,000
Senior secured term loan facility \| New Credit Agreement, dated May 9, 2017 \| Maximum
Credit Facilities
Period after Closing Date prepayment is subject to a prepayment premium				6 months
Senior secured term loan facility \| Prior Credit Agreement, December 2014
Credit Facilities
Prepayment of outstanding balances		$ 462,300,000
Base rate borrowings \| New Credit Agreement, dated May 9, 2017
Credit Facilities
Interest rate margin (as a percent)				3.50%
Base rate borrowings \| New Credit Agreement, dated May 9, 2017 \| Eurodollar
Credit Facilities
Interest rate margin (as a percent)				1.00%
Variable reference rate period				1 month
Base rate borrowings \| New Credit Agreement, dated May 9, 2017 \| Federal funds effective rate
Credit Facilities
Interest rate margin (as a percent)				0.50%
Base rate borrowings \| New Credit Agreement, dated November 13, 2017
Credit Facilities
Interest rate margin (as a percent)				2.50%
Base rate borrowings \| New Credit Agreement, dated May 17, 2018
Credit Facilities
Interest rate margin (as a percent)				2.00%
Eurodollar Borrowings \| New Credit Agreement, dated May 9, 2017
Credit Facilities
Interest rate margin (as a percent)				4.50%
Eurodollar Borrowings \| New Credit Agreement, dated November 13, 2017
Credit Facilities
Interest rate margin (as a percent)				3.50%
Eurodollar Borrowings \| New Credit Agreement, dated May 17, 2018
Credit Facilities
Interest rate margin (as a percent)				3.00%
Eurodollar Borrowings, Interest Period Greater than Three Months \| New Credit Agreement, dated May 9, 2017
Credit Facilities
Interest period term				3 months
Eurodollar Borrowings, Interest Period Greater than Three Months \| New Credit Agreement, dated May 9, 2017 \| Minimum
Credit Facilities
Interest remittance period				3 months

LONG-TERM DEBT - Senior Secured Notes (Details) - USD ($)		3 Months Ended		6 Months Ended
	May 09, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Long-term debt
Loss on extinguishment of debt		$ 166,000	$ 14,615,000	$ 166,000	$ 14,615,000
Senior secured notes
Long-term debt
Loss on extinguishment of debt				$ 14,600,000
Senior secured notes \| 7.25% Notes due 2021 (Refinanced Secured Notes)
Long-term debt
Outstanding amount redeemed	$ 335,000,000
Loss on extinguishment of debt	1,700,000
Debt issuance costs and fees expensed on extinguishment of debt	200,000
Debt discounts expensed on extinguishment of debt	$ 1,500,000

LONG-TERM DEBT - Senior Unsecured Notes (Details) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
	Dec. 05, 2017	Dec. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2014
Long-term debt
Loss on extinguishment of debt			$ 166,000	$ 14,615,000	$ 166,000	$ 14,615,000
Senior unsecured notes
Long-term debt
Principal amount of debt		$ 375,000,000					$ 350,000,000
Interest rate (as a percent)		7.50%					10.00%
Debt issuance discount							$ 3,800,000
Debt issuance costs		$ 6,100,000					$ 14,000,000
Maturity date		Dec. 15, 2025
Redemption date	Dec. 05, 2017
Loss on extinguishment of debt	$ 37,200,000
Make whole premium	26,300,000
Debt issuance costs and fees expensed on extinguishment of debt	$ 10,900,000
Senior unsecured notes \| Prior Credit Agreement, December 2014
Long-term debt
Redemption price percentage	107.50%

SHAREHOLDERS' EQUITY (Details)	3 Months Ended		6 Months Ended
SHAREHOLDERS' EQUITY (Details)	Jun. 30, 2018 USD ($) Vote shares	Jun. 30, 2017 USD ($) shares	Jun. 30, 2018 USD ($) _Series Vote fund shares	Jun. 30, 2017 USD ($) shares	Dec. 31, 2017 shares
Class Of Stock [Line Items]
Convertible preferred stock, shares authorized	50,000,000		50,000,000		50,000,000
Convertible preferred stock, shares outstanding	0		0		0
Number of votes for a share of common stock \| Vote	1		1
Number of sinking fund provisions applicable to common stock \| fund			0
Common stock, shares issued	94,408,000		94,408,000		93,120,000
Treasury Stock
Total Number of Shares Purchased or Withheld
Shares withheld from restricted stock awards	1,215	455	6,216	3,029
Aggregate purchase price of shares repurchased or withheld from restricted stock awards \| $	$ 8,878	$ 3,117	$ 47,278	$ 10,591
Maximum
Class Of Stock [Line Items]
Convertible preferred stock, shares authorized	50,000,000		50,000,000
Minimum
Class Of Stock [Line Items]
Number of series of preferred stock that may be issued \| _Series			1

WEIGHTED AVERAGE COMMON SHARES (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Weighted average common shares outstanding
Weighted average number of common shares outstanding - basic	69,203	66,350	68,946	66,221
Potential dilution from equity awards	4,237		4,377
Weighted average number of common shares outstanding - diluted	73,440	66,350	73,323	66,221
Anti-dilutive equity awards excluded from computation of earnings per share (in shares)	8,600	11,900	8,100	15,300

SHARE-BASED COMPENSATION - Award Activity (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
2014 Equity Incentive Plan
Restricted Stock Granted
Number of shares available for grant	3,300,000		3,300,000
2012 Equity Incentive Plan
Restricted Stock Granted
Number of shares available for grant	3,300,000		3,300,000
2005 Stock Incentive Plan
Restricted Stock Granted
Number of shares available for grant	0		0
Stock Options
Stock Options Granted
Outstanding (in shares)			19,131,000
Granted (in shares)	0	58,000	0	4,100,000
Exercised options (in shares)			(1,288,000)
Canceled or forfeited (in shares)			(1,209,000)
Outstanding (in shares)	16,634,000		16,634,000
Restricted Stock Awards
Restricted Stock Granted
Outstanding (in shares)			74,000
Granted (in shares)	0		0
Vested (in shares)			(22,002)	(11,070)
Outstanding (in shares)	52,000		52,000
Restricted Stock Units
Restricted Stock Granted
Granted (in shares)			1,838,000
Canceled or forfeited (in shares)			(5,000)
Outstanding (in shares)	1,833,000		1,833,000

SHARE-BASED COMPENSATION - Stock Options, Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended			12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2017
Stock options
Proceeds from exercise of stock options				$ 6,373	$ 1,799
Time Based Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period				4 years
Expiration period				10 years
Stock options
Granted (in shares)				0
Stock Options Granted
Granted (in shares)				0
Time Based Options \| Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting rate per year (as a percent)				25.00%
Market Performance Based Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period							4 years
Expiration period							10 years
Vesting price hurdle, percent of premium to closing stock price on grant date							25.00%
Number of consecutive trading days the Company's average stock price meets certain target prices, which satisfy vesting requirements							30 days
Stock options
Granted (in shares)				0
Stock Options Granted
Granted (in shares)				0
Market Performance Based Options \| Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting rate per year (as a percent)							25.00%
Stock Options
Stock options
Granted (in shares)	0	58,000		0	4,100,000
Weighted average grant date fair value (in dollars per share)			$ 3.28			$ 1.83
Exercised	$ 2,500	$ 2,000		$ 3,700	$ 2,000
Unrecognized compensation expense	5,200	13,400		$ 5,200	$ 13,400
Weighted-average period for recognition of unrecognized compensation expense				3 years 2 months 12 days	2 years 4 months 24 days
Non-cash compensation expense				$ 3,700	$ 3,300
Proceeds from exercise of stock options	$ 2,800	$ 1,800		$ 7,100	$ 1,800
Stock Options Granted
Outstanding (in shares)				19,131,000
Granted (in shares)	0	58,000		0	4,100,000
Exercised options (in shares)				(1,288,000)
Canceled or forfeited (in shares)				(1,209,000)
Outstanding (in shares)	16,634,000			16,634,000			19,131,000
Vested and expected to vest (in shares)	15,355,000			15,355,000
Exercisable (in shares)	10,101,000			10,101,000
Weighted Average Exercise Price
Outstanding (in dollars per share)				$ 5.34
Exercised options (in dollars per share)				4.94
Canceled or forfeited (in dollars per share)				5.77
Outstanding (in dollars per share)	$ 5.34			5.34			$ 5.34
Vested and expected to vest (in dollars per share)	5.39			5.39
Exercisable (in dollars per share)	$ 6.06			$ 6.06
Weighted Average Life Remaining
Outstanding				6 years 8 months 12 days			6 years 4 months 25 days
Vested and expected to vest				6 years 8 months 12 days
Exercisable				5 years 9 months 18 days
Aggregate Intrinsic Value
Outstanding (in dollars)	$ 36,771			$ 36,771			$ 45,887
Exercised	2,500	$ 2,000		3,700	$ 2,000
Vested and expected to vest (in dollars)	33,418			33,418
Exercisable (in dollars)	$ 16,376			$ 16,376

SHARE-BASED COMPENSATION - Stock Options, Fair Value Assumptions (Details)	6 Months Ended
	Jun. 30, 2017
Time Based Options
Weighted-average assumptions used in estimating fair value
Risk-free interest rate	2.00%
Expected life of options (in years)	6 years
Expected volatility	54.00%
Market Performance Based Options
Weighted-average assumptions used in estimating fair value
Risk-free interest rate	3.00%
Expected life of options (in years)	10 years
Expected volatility	70.00%

SHARE-BASED COMPENSATION - Restricted Stock (Details) - Restricted Stock Awards - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restricted Stock Granted
Outstanding (in shares)			74,000
Granted (in shares)	0		0
Vested (in shares)			(22,002)	(11,070)
Outstanding (in shares)	52,000		52,000
Weighted Average Grant Date Fair Value
Outstanding (in dollars per share)			$ 7.00
Vested (in dollars per share)			6.91
Outstanding (in dollars per share)	$ 7.04		$ 7.04
Restricted stock
Granted (in shares)	0		0
Total fair value of shares vested	$ 33,306	$ 12,128	$ 152,054	$ 80,590
Unrecognized compensation expense	$ 200,000	$ 900,000	$ 200,000	$ 900,000
Weighted-average period for recognition of unrecognized compensation expense			7 months 6 days	1 year 6 months
Vested (in shares)			22,002	11,070
Non-cash compensation expense			$ 300,000	$ 200,000

SHARE-BASED COMPENSATION - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Restricted Stock Units and Performance Based Restricted Stock Units
Restricted Stock Granted
Granted (in shares)		1,838,000	0
Vested (in shares)		0	0
Forfeited (in shares)		(5,000)
Outstanding (in shares)	1,833,000	1,833,000
Vested and expected to vest (in shares)	1,125,000	1,125,000
Weighted Average Grant Date Fair Value
Granted (in dollars per share)		$ 7.49
Forfeited (in dollars per share)		7.47
Outstanding (in dollars per share)	$ 7.49	7.49
Vested and expected to vest (in dollars per share)	$ 7.49	$ 7.49
Weighted Average Life Remaining
Outstanding		2 years 6 months
Vested and expected to vest		2 years 3 months 18 days
Aggregate Intrinsic Value
Outstanding (in dollars)	$ 13,195	$ 13,195
Vested and expected to vest (in dollars)	8,099	$ 8,099
Restricted stock
Granted (in shares)		1,838,000	0
Vested (in shares)		0	0
Unrecognized compensation expense	$ 7,900	$ 7,900
Weighted-average period for recognition of unrecognized compensation expense		3 years 6 months
Non-cash compensation expense		$ 300
Restricted Stock Units
Restricted Stock Granted
Granted (in shares)		1,838,000
Forfeited (in shares)		(5,000)
Outstanding (in shares)	1,833,000	1,833,000
Weighted Average Grant Date Fair Value
Vesting period	4 years
Restricted stock
Granted (in shares)		1,838,000
Restricted Stock Units \| Tranche One
Weighted Average Grant Date Fair Value
Vesting rate per year (as a percent)	25.00%

INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate (as a percent)	(377.30%)	(10.80%)	(35.40%)	(14.80%)
Statutory federal rate (as a percent)	21.00%	35.00%	21.00%	35.00%
Unrecognized tax benefits	$ 0.9		$ 0.9

SEGMENT INFORMATION - Revenues, Operating Income, and Assets (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2018

Jun. 30, 2017

Dec. 31, 2017

Revenues

$ 118,682

$ 242,230

$ 229,683

$ 479,767

96,085

182,595

37,570

28,779

69,757

57,772

4,595

4,618

8,906

9,161

13,701

11,396

26,526

22,226

16,552

17,439

32,855

34,764

96,085

220,938

182,595

435,872

22,597

21,292

47,088

43,895

Total assets

Total assets

1,439,816

$ 1,537,074

Games

Revenues

65,948

55,104

126,165

110,380

^[1]

16,815

13,239

31,738

25,683

16,210

10,588

28,217

21,197

4,595

4,618

8,906

9,161

12,112

9,697

23,252

18,728

13,907

14,241

27,392

28,098

63,639

52,383

119,505

102,867

Games | Gaming operations

2,309

2,721

6,660

7,513

Total assets

Total assets

931,730

925,186

Revenues

43,022

36,869

83,078

73,400

Games | Gaming equipment and systems

4,211

3,963

8,393

7,171

Revenues

22,278

17,557

42,431

36,281

12,045

8,740

22,786

17,976

Games | Gaming other

Revenues

648

678

656

699

559

536

559

536

FinTech

Revenues

52,734

187,126

103,518

369,387

^[1]

6,852

145,467

12,813

286,266

21,360

18,191

41,540

36,575

1,589

1,699

3,274

3,498

2,645

3,198

5,463

6,666

32,446

168,555

63,090

333,005

FinTech | Cash access services

20,288

18,571

40,428

36,382

Total assets

Total assets

508,086

$ 611,888

Revenues

39,739

175,442

77,958

347,175

2,446

142,445

4,676

281,106

FinTech | Equipment

Revenues

4,765

3,697

9,183

5,997

FinTech | Information services and other

3,426

2,212

5,940

3,631

Revenues

8,230

7,987

16,377

16,215

980

810

2,197

1,529

Total Games and FinTech

Revenues

118,682

242,230

229,683

479,767

23,667

158,706

44,551

311,949

37,570

28,779

69,757

57,772

4,595

4,618

8,906

9,161

13,701

11,396

26,526

22,226

16,552

17,439

32,855

34,764

96,085

220,938

182,595

435,872