EVERI HOLDINGS INC., 10-Q filed on 5/10/2023
Quarterly Report
v3.23.1
Cover - shares
3 Months Ended
Mar. 31, 2023
May 05, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2023  
Document Transition Report false  
Entity File Number 001-32622  
Entity Registrant Name EVERI HOLDINGS INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-0723270  
Entity Address, Address Line One 7250 S. Tenaya Way  
Entity Address, Address Line Two Suite 100  
Entity Address, City or Town Las Vegas  
Entity Address, State or Province NV  
Entity Address, Postal Zip Code 89113  
City Area Code 800  
Local Phone Number 833-7110  
Title of 12(b) Security Common Stock, $0.001 par value  
Trading Symbol EVRI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   89,042,227
Entity Central Index Key 0001318568  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q1  
v3.23.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Revenues    
Total revenues $ 200,472 $ 175,616
Costs and expenses    
Operating expenses 59,192 49,825
Research and development 16,096 12,519
Depreciation 18,949 15,220
Amortization 14,364 13,633
Total costs and expenses 148,426 123,025
Operating income 52,046 52,591
Other expenses    
Interest expense, net of interest income 17,970 11,348
Total other expenses 17,970 11,348
Income before income tax 34,076 41,243
Income tax provision 6,010 9,721
Net income 28,066 31,522
Foreign currency translation (loss) gain (186) 580
Comprehensive income $ 27,880 $ 32,102
Earnings per share    
Basic (in dollars per share) $ 0.32 $ 0.34
Diluted (in dollars per share) $ 0.30 $ 0.31
Weighted average common shares outstanding    
Basic (in shares) 88,355 91,408
Diluted (in shares) 94,781 101,471
Games    
Revenues    
Total revenues $ 107,374 $ 98,336
Costs and expenses    
Total cost of revenues [1] 27,055 22,777
Operating expenses 20,872 17,346
Research and development 10,653 7,630
Depreciation 16,239 12,981
Amortization 10,276 9,805
Total costs and expenses 85,095 70,539
Operating income 22,279 27,797
Games | Gaming operations    
Revenues    
Total revenues 75,309 70,338
Costs and expenses    
Total cost of revenues [1] 6,806 5,995
Games | Gaming equipment and systems    
Revenues    
Total revenues 32,065 27,998
Costs and expenses    
Total cost of revenues [1] 20,249 16,782
FinTech    
Revenues    
Total revenues 93,098 77,280
Costs and expenses    
Total cost of revenues [1] 12,770 9,051
Operating expenses 38,320 32,479
Research and development 5,443 4,889
Depreciation 2,710 2,239
Amortization 4,088 3,828
Total costs and expenses 63,331 52,486
Operating income 29,767 24,794
FinTech | Financial access services    
Revenues    
Total revenues 56,214 49,879
Costs and expenses    
Total cost of revenues [1] 2,899 2,175
FinTech | Software and other    
Revenues    
Total revenues 24,215 17,867
Costs and expenses    
Total cost of revenues [1] 1,423 935
FinTech | Hardware    
Revenues    
Total revenues 12,669 9,534
Costs and expenses    
Total cost of revenues [1] $ 8,448 $ 5,941
[1] (1) Exclusive of depreciation and amortization.
EVERI HOLDINGS INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - CONTINUED
(In thousands, except earnings per share amounts)
v3.23.1
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Current assets    
Cash and cash equivalents $ 293,207 $ 293,394
Settlement receivables 87,771 263,745
Trade and other receivables, net of allowances for credit losses of $5,195 and $4,855 at March 31, 2023 and December 31, 2022, respectively 115,243 118,895
Inventory 68,608 58,350
Prepaid expenses and other current assets 40,461 38,822
Total current assets 605,290 773,206
Non-current assets    
Property and equipment, net 132,272 133,645
Goodwill 717,731 715,870
Other intangible assets, net 233,475 238,275
Other receivables 28,305 27,757
Deferred tax assets, net 529 1,584
Other assets 25,968 27,906
Total non-current assets 1,138,280 1,145,037
Total assets 1,743,570 1,918,243
Current liabilities    
Settlement liabilities 274,218 467,903
Accounts payable and accrued expenses 207,221 217,424
Current portion of long-term debt 1,500 6,000
Total current liabilities 482,939 691,327
Non-current liabilities    
Deferred tax liabilities, net 8,391 5,994
Long-term debt, less current portion 971,112 971,995
Other accrued expenses and liabilities 25,881 31,286
Total non-current liabilities 1,005,384 1,009,275
Total liabilities 1,488,323 1,700,602
Commitments and contingencies (Note 12)
Stockholders’ equity    
Convertible preferred stock, $0.001 par value, 50,000 shares authorized and no shares outstanding at March 31, 2023 and December 31, 2022, respectively 0 0
Common stock, $0.001 par value, 500,000 shares authorized and 120,145 and 88,773 shares issued and outstanding at March 31, 2023, respectively, and 119,390 and 88,036 shares issued and outstanding at December 31, 2022, respectively 120 119
Additional paid-in capital 537,523 527,465
Retained earnings (accumulated deficit) 6,800 (21,266)
Accumulated other comprehensive loss (4,383) (4,197)
Treasury stock, at cost, 31,373 and 31,353 shares at March 31, 2023 and December 31, 2022, respectively (284,813) (284,480)
Total stockholders’ equity 255,247 217,641
Total liabilities and stockholders’ equity $ 1,743,570 $ 1,918,243
v3.23.1
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Current assets    
Allowances for doubtful accounts $ 5,195 $ 4,855
Stockholders’ equity    
Convertible preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Convertible preferred stock authorized (in shares) 50,000,000 50,000,000
Convertible preferred stock outstanding (in shares) 0 0
Common stock par value (in dollars per share) $ 0.001 $ 0.001
Common stock authorized (in shares) 500,000,000 500,000,000
Common stock issued (in shares) 120,145,000 119,390,000
Common stock outstanding (in shares) 88,773,000 88,036,000
Treasury stock (in shares) 31,373,000 31,353,000
v3.23.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Cash flows from operating activities    
Net income $ 28,066 $ 31,522
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation 18,949 15,220
Amortization 14,364 13,633
Non-cash lease expense 1,317 1,014
Amortization of financing costs and discounts 713 713
Loss on sale or disposal of assets 134 29
Accretion of contract rights 2,335 2,427
Provision for credit losses 3,078 1,947
Deferred income taxes 1,860 9,398
Reserve for inventory obsolescence 319 55
Stock-based compensation 4,825 4,811
Changes in operating assets and liabilities:    
Settlement receivables 175,988 28,958
Trade and other receivables (87) (6,123)
Inventory (10,937) (11,069)
Prepaid expenses and other assets (271) (6,812)
Settlement liabilities (193,698) (83,427)
Accounts payable and accrued expenses (15,247) 2,978
Net cash provided by operating activities 31,708 5,274
Cash flows from investing activities    
Capital expenditures (29,821) (23,639)
Acquisitions, net of cash acquired 0 (13,318)
Proceeds from sale of property and equipment 67 57
Net cash used in investing activities (29,754) (36,900)
Cash flows from financing activities    
Repayments of term loan (6,000) (1,500)
Proceeds from exercise of stock options 5,233 699
Treasury stock - restricted stock vesting, net of shares withheld (333) (400)
Payment of contingent consideration, acquisition (47) 0
Net cash used in financing activities (1,147) (1,201)
Effect of exchange rates on cash and cash equivalents (167) 136
Cash, cash equivalents and restricted cash    
Net increase (decrease) for the period 640 (32,691)
Balance, beginning of the period 295,063 303,726
Balance, end of the period 295,703 271,035
Supplemental cash disclosures    
Cash paid for interest 25,051 14,439
Cash paid (refunded) for income tax, net 465 (41)
Supplemental non-cash disclosures    
Accrued and unpaid capital expenditures 2,551 2,987
Transfer of leased gaming equipment to inventory $ 1,809 $ 1,358
v3.23.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings/Accumulated Deficit
Accumulated Other Comprehensive Loss
Treasury Stock
Balance, beginning of period (in shares) at Dec. 31, 2021   116,996        
Balance, beginning of period at Dec. 31, 2021 $ 174,500 $ 117 $ 505,757 $ (141,755) $ (1,455) $ (188,164)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 31,522     31,522    
Foreign currency translation 580       580  
Stock-based compensation expense 4,811   4,811      
Exercise of options (in shares)   164        
Exercise of options 699 $ 0 699      
Restricted share vesting and withholding (in shares)   61        
Restricted stock vesting, net of shares withheld (400)         (400)
Balance, end of period (in shares) at Mar. 31, 2022   117,221        
Balance, end of period at Mar. 31, 2022 $ 211,712 $ 117 511,267 (110,233) (875) (188,564)
Balance, beginning of period (in shares) at Dec. 31, 2022 88,036 119,390        
Balance, beginning of period at Dec. 31, 2022 $ 217,641 $ 119 527,465 (21,266) (4,197) (284,480)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 28,066     28,066    
Foreign currency translation (186)       (186)  
Stock-based compensation expense 4,825   4,825      
Exercise of options (in shares)   702        
Exercise of options 5,234 $ 1 5,233      
Restricted share vesting and withholding (in shares)   53        
Restricted stock vesting, net of shares withheld $ (333)         (333)
Balance, end of period (in shares) at Mar. 31, 2023 88,773 120,145        
Balance, end of period at Mar. 31, 2023 $ 255,247 $ 120 $ 537,523 $ 6,800 $ (4,383) $ (284,813)
v3.23.1
BUSINESS
3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BUSINESS BUSINESS
Everi Holdings Inc. (“Everi Holdings,” or “Everi”) is a holding company, the assets of which are the issued and outstanding shares of capital stock of each of Everi Payments Inc. (“Everi FinTech” or “FinTech”) and Everi Games Holding Inc., which owns all of the issued and outstanding shares of capital stock of Everi Games Inc. (“Everi Games” or “Games”). Unless otherwise indicated, the terms the “Company,” “we,” “us,” and “our” refer to Everi Holdings together with its consolidated subsidiaries.
Everi develops and offers products and services that provide gaming entertainment, improve our customers’ patron engagement, and help our casino customers operate their businesses more efficiently. We develop and supply entertaining game content, gaming machines and gaming systems and services for land-based and iGaming operators. Everi is a provider of financial technology solutions that power casino floors, provide operational efficiencies, and help fulfill regulatory requirements. The Company also develops and supplies player loyalty tools and mobile-first applications that enhance patron engagement for our customers and venues in the casino, sports, entertainment and hospitality industries.
Everi reports its financial performance, and organizes and manages its operations, across the following two business segments: (i) Games and (ii) Financial Technology Solutions (“FinTech”).
Everi Games provides gaming operators with gaming technology and entertainment products and services, including: (i) gaming machines, primarily comprising Class II, Class III and Historic Horse Racing (“HHR”) slot machines placed under participation or fixed-fee lease arrangements or sold to casino customers; (ii) providing and maintaining the central determinant systems for the video lottery terminals (“VLTs”) installed in the State of New York and similar technology in certain tribal jurisdictions; and (iii) business-to-business (“B2B”) digital online gaming activities.
Everi FinTech provides gaming operators with financial technology products and services, including: (i) financial access and related services supporting digital, cashless and physical cash options across mobile, assisted and self-service channels; (ii) loyalty and marketing software and tools, regulatory and compliance (“RegTech”) software solutions, other information-related products and services, and hardware maintenance services; and (iii) associated casino patron self-service hardware that utilizes our financial access, software and other services. We also develop and offer mobile-first applications aimed at enhancing patron engagement for customers in the casino, sports, entertainment, and hospitality industries. Our solutions are secured using an end-to-end security suite to protect against cyber-related attacks, allowing us to maintain appropriate levels of security. These solutions include: access to cash and cashless funding at gaming facilities via Automated Teller Machine (“ATM”) debit withdrawals, credit card financial access transactions, and point of sale (“POS”) debit card purchases at casino cages, kiosk and mobile POS devices; accounts for the CashClub Wallet, check warranty services, self-service loyalty and fully integrated kiosk maintenance services; self-service loyalty tools and promotion management software; compliance, audit, and data software; casino credit data and reporting services; marketing and promotional offering subscription-based services; and other ancillary offerings.
Impact of COVID-19, Macro-Economic Volatility and Global Instability, Employment Constraints and Supply Chain Disruptions

We continue to monitor the remaining effects of COVID-19 and believe we are prepared to respond appropriately to the
extent additional variants surface that disrupt our business.

We have experienced an impact from macro-economic volatility as a result of inflation, interest rate movements and global instability, particularly as it relates to our supply chain, both from an upstream and downstream perspective, which impacts the delivery of our products; and we continue to evaluate the effects of interest rate movements on our variable rate debt and pricing pressures on our business.

We have experienced an impact from employment constraints as a result of inflation that has significantly increased over prior years. This has placed pressure on competitive wages, which has led to increases in wages and other related costs.

We have experienced an impact from supply chain disruptions that have resulted in additional costs incurred to develop, produce, and ship our products.
v3.23.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
Our 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 months ended March 31, 2023 are not necessarily indicative of results to be expected for the full fiscal year. The Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the most recently filed Annual Report.
Restricted Cash
Our restricted cash primarily consists of: (i) funds held in connection with certain customer agreements; (ii) funds held in connection with a sponsorship agreement; and (iii) wide-area progressive (“WAP”)-related restricted funds. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows for the three months ended March 31, 2023 (in thousands).
Classification on our Balance Sheets
At March 31, 2023
At December 31, 2022
Cash and cash equivalentsCash and cash equivalents$293,207 $293,394 
Restricted cash - currentPrepaid expenses and other current assets2,395 1,568 
Restricted cash - non-currentOther assets101 101 
Total$295,703 $295,063 
Fair Values of Financial Instruments
The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument.
The carrying amount of cash and cash equivalents, restricted cash, settlement receivables, short-term trade and other receivables, settlement liabilities, accounts payable, and accrued expenses approximate fair value due to the short-term maturities of these instruments. The fair value of the long-term trade and loans receivable is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. The fair value of long-term accounts payable is estimated by discounting the total obligation. As of March 31, 2023 and December 31, 2022, the fair value of trade and loans receivable approximated the carrying value due to contractual terms generally being slightly over 12 months. The fair value of our borrowings is estimated based on various inputs to determine a market price, such as: market demand and supply, size of tranche, maturity, and similar instruments trading in more active markets. The estimated fair value and outstanding balances of our borrowings are as follows (dollars in thousands):
 Level of HierarchyFair ValueOutstanding Balance
March 31, 2023   
$600 million Term Loan
2$584,301 $586,500 
$400 million Unsecured Notes
2$358,000 $400,000 
December 31, 2022   
$600 million Term Loan
2$588,560 $592,500 
$400 million Unsecured Notes
2$346,000 $400,000 
The fair values of our borrowings were determined using Level 2 inputs based on quoted market prices for these securities.
Reclassification of Balances
Certain amounts in the accompanying consolidated financial statements and accompanying notes have been reclassified to be consistent with the current year presentation. These reclassifications had no effect on net income for the prior periods.
Recent Accounting Guidance
As of March 31, 2023, no recent accounting guidance is expected to have a significant impact on our consolidated financial statements.
v3.23.1
REVENUES
3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Overview
We evaluate the recognition of revenue based on the criteria set forth in Accounting Standards Codification (“ASC”) 606 — Revenue from Contracts with Customers and ASC 842 — Leases, as appropriate. We recognize revenue upon transferring control of goods or services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We enter into contracts with customers that include various performance obligations consisting of goods, services, or combinations of goods and services. Timing of the transfer of control varies based on the nature of the contract. We recognize revenue net of any sales and other taxes collected from customers, which are subsequently remitted to governmental authorities and are not included in revenues or operating expenses. We measure revenue based on the consideration specified in a contract with a customer and adjusted, as necessary.
Disaggregation of Revenues
We disaggregate revenues based on the nature and timing of the cash flows generated by such revenues as presented in “Note 17 — Segment Information.”
Contract Balances
Since our contracts may include multiple performance obligations, there is often a timing difference between cash collections and the satisfaction of such performance obligations and revenue recognition. Such arrangements are evaluated to determine whether contract assets and liabilities exist. We generally record contract assets when the timing of billing differs from when revenue is recognized due to contracts containing specific performance obligations that are required to be met prior to a customer being invoiced. We generally record contract liabilities when cash is collected in advance of us satisfying performance obligations, including those that are satisfied over a period of time. Balances of our contract assets and contract liabilities may fluctuate due to timing of cash collections.
The following table summarizes our contract assets and contract liabilities arising from contracts with customers (in thousands):
20232022
Contract assets(1)
Balance, beginning of period$22,417 $15,221 
Balance, end of period22,342 14,514 
         Decrease$(75)$(707)
Contract liabilities(2)
Balance, beginning of period$53,419 $36,615 
Balance, end of period51,705 39,090 
        (Decrease) increase$(1,714)$2,475 
(1) Contract assets are included within trade and other receivables, net and other receivables in our Balance Sheets.
(2) Contract liabilities are included within accounts payable and accrued expenses and other accrued expenses and liabilities in our Balance Sheets.
We recognized approximately $18.2 million and $12.7 million in revenue that was included in the beginning contract liabilities balance during the three months ended March 31, 2023 and 2022, respectively.
Games Revenues
Our products and services include electronic gaming devices, such as Native American Class II offerings and other electronic bingo products, Class III slot machine offerings, HHR offerings, VLTs installed in the State of New York and similar technology in certain tribal jurisdictions, B2B digital online gaming activities, accounting and central determinant systems, and other back-office systems. We conduct our Games segment business based on results generated from the following major revenue streams: (i) Gaming Operations; and (ii) Gaming Equipment and Systems.
We recognize our Gaming Operations revenue based on criteria set forth in ASC 842 or ASC 606, as applicable. The amount of lease revenue included in our Gaming Operations revenues and recognized under ASC 842 was approximately $49.4 million and $47.1 million for the three months ended March 31, 2023 and 2022, respectively.
FinTech Revenues
Our FinTech products and services include solutions that we offer to gaming establishments to provide their patrons with financial access and funds-based services supporting digital, cashless and physical cash options across mobile, assisted and self-service channels along with related loyalty and marketing tools, and other information-related products and services. We also develop and offer mobile-first applications aimed at enhancing patron engagement for customers in the casino, sports, entertainment, and hospitality industries. In addition, our services operate as part of an end-to-end security suite to protect against cyber-related attacks, allowing us to maintain appropriate levels of security. These solutions include: access to cash and cashless funding at gaming facilities via ATM debit withdrawals, credit card financial access transactions, and POS debit card purchases at casino cages, kiosk and mobile POS devices; accounts for the CashClub Wallet, check warranty services, self-service loyalty and fully integrated kiosk maintenance services; self-service loyalty tools and promotion management software; compliance, audit, and data software; casino credit data and reporting services; marketing and promotional offering subscription-based services; and other ancillary offerings. We conduct our FinTech segment business based on results generated from the following major revenue streams: (i) Financial Access Services; (ii) Software and Other; and (iii) Hardware.
Hardware revenues are derived from the sale of our financial access and loyalty kiosks and related equipment and are accounted for under ASC 606, unless such transactions meet the definition of a sales type or direct financing lease, which are accounted for under ASC 842. We did not have any material financial access kiosk and related equipment sales contracts accounted for under ASC 842 during the three months ended March 31, 2023 and 2022.
v3.23.1
LEASES
3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
LEASES LEASES
Lessee
Balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance Sheets
At March 31, 2023
At December 31, 2022
Assets
Operating lease right-of-use (“ROU”) assetsOther assets, non-current$15,921 $17,169 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$6,489 $6,507 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$13,205 $14,738 
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended March 31,
20232022
Cash paid for:
Long-term operating leases$1,712 $1,668 
Short-term operating leases$372 $409 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
$86 $5,947 
Other information related to lease terms and discount rates is as follows:
At March 31, 2023At December 31, 2022
Weighted Average Remaining Lease Term (in years):
Operating leases3.173.37
Weighted Average Discount Rate:
Operating leases4.73 %4.72 %
Components of lease expense are as follows (in thousands):
Three Months Ended March 31,
20232022
Operating Lease Cost:
Operating lease cost
$1,477 $1,362 
Variable lease cost $319 $279 

Maturities of lease liabilities are summarized as follows as of March 31, 2023 (in thousands):

Year Ending December 31, Amount
2023 (excluding the three months ended March 31, 2023)
$5,533 
2024
6,732 
2025
5,852 
2026
2,137 
2027
608 
Thereafter359 
Total future minimum lease payments 21,221 
Less: Amount representing interest 1,527 
Present value of future minimum lease payments19,694 
Less: Current operating lease obligations6,489 
Long-term lease obligations$13,205 
As of March 31, 2023, the Company entered into a real estate lease that has not yet commenced with a term of ten years and future minimum lease payments of approximately $27.3 million.
LEASES LEASES
Lessee
Balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance Sheets
At March 31, 2023
At December 31, 2022
Assets
Operating lease right-of-use (“ROU”) assetsOther assets, non-current$15,921 $17,169 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$6,489 $6,507 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$13,205 $14,738 
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended March 31,
20232022
Cash paid for:
Long-term operating leases$1,712 $1,668 
Short-term operating leases$372 $409 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
$86 $5,947 
Other information related to lease terms and discount rates is as follows:
At March 31, 2023At December 31, 2022
Weighted Average Remaining Lease Term (in years):
Operating leases3.173.37
Weighted Average Discount Rate:
Operating leases4.73 %4.72 %
Components of lease expense are as follows (in thousands):
Three Months Ended March 31,
20232022
Operating Lease Cost:
Operating lease cost
$1,477 $1,362 
Variable lease cost $319 $279 

Maturities of lease liabilities are summarized as follows as of March 31, 2023 (in thousands):

Year Ending December 31, Amount
2023 (excluding the three months ended March 31, 2023)
$5,533 
2024
6,732 
2025
5,852 
2026
2,137 
2027
608 
Thereafter359 
Total future minimum lease payments 21,221 
Less: Amount representing interest 1,527 
Present value of future minimum lease payments19,694 
Less: Current operating lease obligations6,489 
Long-term lease obligations$13,205 
As of March 31, 2023, the Company entered into a real estate lease that has not yet commenced with a term of ten years and future minimum lease payments of approximately $27.3 million.
v3.23.1
BUSINESS COMBINATIONS
3 Months Ended
Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
BUSINESS COMBINATIONS BUSINESS COMBINATIONS
We account for business combinations in accordance with ASC 805 Business Combinations, which requires that the identifiable assets acquired and liabilities assumed be recorded at their estimated fair values on the acquisition date separately from goodwill, which is the excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities. We include the results of operations of an acquired business starting from the acquisition date.

eCash Holdings Pty Limited
On March 1, 2022 (the “eCash Closing Date”), the Company acquired the stock of eCash Holdings Pty Limited (“eCash”). Under the terms of the stock purchase agreement, we paid the seller AUD$20 million (approximately USD$15 million) on the eCash Closing Date with additional consideration of AUD$6.5 million to be paid approximately one year following the eCash Closing Date and another AUD$6.5 million to be paid approximately two years following the eCash Closing Date. In addition, we paid approximately AUD$8.7 million (approximately USD$6.0 million) for the excess net working capital during the second quarter of 2022. We finalized our measurement period adjustments and recorded approximately $2.3 million primarily related to deferred taxes during the quarter ending March 31, 2023. The acquisition did not have a significant impact on our results of operations or financial condition.
Intuicode Gaming Corporation
On April 30, 2022 (the “Intuicode Closing Date”), the Company acquired the stock of Intuicode Gaming Corporation (“Intuicode”), a privately owned game development and engineering firm focused on HHR games. Under the terms of the stock purchase agreement, we paid the seller $12.5 million on the Intuicode Closing Date of the transaction and a net working capital payment of $1.6 million during the second quarter of 2022. In addition, we expect to pay approximately $13.0 million in contingent consideration based upon the achievement of certain revenue targets on the first and second anniversaries of the Intuicode Closing Date. We expect the total consideration for this acquisition to be approximately $27.1 million. The acquisition did not have a significant impact on our results of operations or financial condition.
The fair value of the contingent consideration was based on Level 3 inputs utilizing a discounted cash flow methodology. The estimates and assumptions included projected future revenues of the acquired business and a discount rate of approximately 5%. Contingent consideration to be paid is comprised of a short-term component that is recorded in accounts payable and accrued expenses and a long-term component payable within two years recorded in other accrued expenses and liabilities in our Balance Sheets. The change in fair value of the contingent consideration during the period ended March 31, 2023 was not material.
The estimates and assumptions used include the projected timing and amount of future cash flows and discount rates reflecting risk inherent in the future cash flows. The estimated fair values of assets acquired and liabilities assumed and resulting goodwill are subject to adjustment as the Company finalizes its purchase price accounting. The significant items for which a final fair value has not been determined include, but are not limited to, deferred income taxes. We do not expect our fair value determinations to materially change; however, there may be differences between the amounts recorded at the Intuicode Closing Date and the final fair value analysis, which we expect to complete no later than the second quarter of 2023.

The financial results included in our Statements of Operations for the three months ended March 31, 2023 reflected revenues of approximately $3.1 million and net income of approximately $1.2 million. We incurred no acquisition-related costs during the three months ended March 31, 2023.

Venuetize, Inc.

On October 14, 2022 (the “Venuetize Closing Date”), the Company acquired certain strategic assets of Venuetize, Inc. (“Venuetize”), a privately owned innovator of mobile-first technologies that provide an advanced guest engagement and m-commerce platform for the sports, entertainment and hospitality industries.

Under the terms of the asset purchase agreement, we paid the seller $18.2 million on the Venuetize Closing Date. In addition, we expect to pay approximately $2.8 million in contingent consideration based upon the achievement of certain revenue targets on the twelve-month, twenty-four month and thirty-month anniversaries of the Venuetize Closing Date. We expect the total consideration for this acquisition to be approximately $21.0 million. The acquisition did not have a significant impact on our results of operations or financial condition.

The fair value of the contingent consideration was based on Level 3 inputs utilizing a discounted cash flow methodology. The estimates and assumptions included projected future revenues of the acquired business and a discount rate of approximately 7%. Contingent consideration to be paid is comprised of a short-term component that is recorded in accounts payable and accrued expenses and a long-term component payable within three years recorded in other accrued expenses and liabilities in
our Balance Sheets. The change in fair value of the contingent consideration during the period ended March 31, 2023 was not material.

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

The financial results included in our Statements of Operations for the three months ended March 31, 2023 reflected revenues of approximately $0.8 million and net loss of approximately $1.2 million. Acquisition-related costs incurred during the three months ended March 31, 2023 were not material.

Pro-forma financial information (unaudited)

The unaudited pro forma financial data includes the historical operating results of the Company and the three acquired businesses prior to the acquisitions as if the transactions occurred on January 1, 2022. The unaudited pro forma results include increases to depreciation and amortization expense based on the purchased intangible assets and costs directly attributable to the acquisitions. The unaudited pro forma results do not purport to be indicative of results of operations as of the date hereof, for any period ended on the date hereof, or for any other future date or period; nor do they give effect to synergies, cost savings, fair market value adjustments and other changes expected as a result of the acquisitions.
The unaudited pro forma financial data on a consolidated basis as if the eCash, Intuicode and Venuetize acquisitions occurred on January 1, 2022 would reflect revenue of approximately $186.1 million and net income of approximately $29.9 million for the three months ended March 31, 2022.
v3.23.1
FUNDING AGREEMENTS
3 Months Ended
Mar. 31, 2023
A T M Funding Agreement Disclosure [Abstract]  
FUNDING AGREEMENTS FUNDING AGREEMENTS
We have commercial arrangements with third-party vendors to provide cash for certain of our fund dispensing devices. For the use of these funds, we pay a usage fee on either the average daily balance of funds utilized multiplied by a contractually defined usage rate or the amounts supplied multiplied by a contractually defined usage rate. These fund usage fees, reflected as interest expense within the Statements of Operations, were approximately $4.3 million and $1.0 million for the three months ended March 31, 2023 and 2022, respectively. We are exposed to interest rate risk to the extent that the applicable rates increase.
Under these agreements, the currency supplied by third party vendors remain their sole property until the funds are dispensed. As these funds are not our assets, supplied cash is not reflected in our Balance Sheets. The outstanding balance of funds provided from the third parties were approximately $339.2 million and $444.6 million as of March 31, 2023 and December 31, 2022, respectively.
Our primary commercial arrangement, the Contract Cash Solutions Agreement, as amended, is with Wells Fargo, N.A. (“Wells Fargo”). Wells Fargo provides us with cash up to $300 million with the ability to increase the amount permitted by the vault cash provider. The term of the agreement expires on June 30, 2024 and will automatically renew for additional one-year periods unless either party provides a ninety-day written notice of its intent not to renew.
We are responsible for losses of cash in the fund dispensing devices under this agreement, and we self-insure for this type of risk. There were no material losses for the three months ended March 31, 2023 and 2022.
v3.23.1
TRADE AND OTHER RECEIVABLES
3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
TRADE AND OTHER RECEIVABLES TRADE AND OTHER RECEIVABLES
Trade and other receivables represent short-term credit granted to customers and long-term loans receivable in connection with our Games and FinTech equipment and software, and compliance products. Trade and loans receivable generally do not require collateral.
The balance of trade and loans receivable consists of outstanding balances owed to us by gaming operators. Other receivables include income tax receivables and other miscellaneous receivables.
The balance of trade and other receivables consisted of the following (in thousands):
 At March 31,At December 31,
20232022
Trade and other receivables, net  
Games trade and loans receivable$73,365 $78,200 
FinTech trade and loans receivable
43,775 39,925 
Contract assets(1)
22,342 22,417 
Other receivables4,066 6,110 
Total trade and other receivables, net143,548 146,652 
Non-current portion of receivables  
Games trade and loans receivable892 1,382 
FinTech trade and loans receivable
18,225 16,519 
Contract assets(1)
9,188 9,856 
Total non-current portion of receivables28,305 27,757 
Total trade and other receivables, current portion$115,243 $118,895 
(1) Refer to “Note 3 — Revenues” for a discussion on the contract assets.
Allowance for Credit Losses
The activity in our allowance for credit losses for the three months ended March 31, 2023 and 2022 is as follows (in thousands):
Three Months Ended March 31,
20232022
Beginning allowance for credit losses$(4,855)$(5,161)
Provision(3,078)(1,947)
Charge-offs, net of recoveries2,738 2,085 
Ending allowance for credit losses$(5,195)$(5,023)
v3.23.1
INVENTORY
3 Months Ended
Mar. 31, 2023
Inventory Disclosure [Abstract]  
INVENTORY INVENTORYOur inventory primarily consists of component parts as well as work-in-progress and finished goods. The cost of inventory includes cost of materials, labor, overhead and freight, and is accounted for using the first in, first out method. The inventory is stated at the lower of cost or net realizable value.
Inventory consisted of the following (in thousands):
 At March 31,At December 31,
 20232022
Inventory  
Component parts$58,781 $48,688 
Work-in-progress4,073 323 
Finished goods5,754 9,339 
Total inventory$68,608 $58,350 
v3.23.1
PROPERTY AND EQUIPMENT
3 Months Ended
Mar. 31, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
Property and equipment consist of the following (in thousands):
  At March 31, 2023At December 31, 2022
Useful Life
(Years)
CostAccumulated
Depreciation
Net Book
Value
CostAccumulated
Depreciation
Net Book
Value
Property and equipment       
Rental pool - deployed
2-4
$284,028 $196,292 $87,736 $279,524 $188,369 $91,155 
Rental pool - undeployed
2-4
32,239 24,691 7,548 30,378 23,930 6,448 
FinTech equipment
1-5
36,749 25,038 11,711 36,442 24,167 12,275 
Leasehold and building improvementsLease Term13,747 11,097 2,650 13,666 10,689 2,977 
Machinery, office, and other equipment
1-5
58,818 36,191 22,627 55,246 34,456 20,790 
Total $425,581 $293,309 $132,272 $415,256 $281,611 $133,645 
Depreciation expense related to property and equipment totaled approximately $18.9 million and $15.2 million for the three months ended March 31, 2023 and 2022, respectively.
v3.23.1
GOODWILL AND OTHER INTANGIBLE ASSETS
3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. The balance of goodwill was approximately $717.7 million and $715.9 million at March 31, 2023 and December 31, 2022, respectively. We have the following reporting units: (i) Games; (ii) Financial Access Services; (iii) Kiosk Sales and Services; (iv) Central Credit Services; (v) Compliance Sales and Services; (vi) Loyalty Sales and Services; and (vii) Mobile Technologies.
Other Intangible Assets
Other intangible assets consist of the following (in thousands):
  At March 31, 2023At December 31, 2022
Useful Life
(Years)
CostAccumulated
Amortization
Net Book
Value
CostAccumulated
Amortization
Net Book
Value
Other intangible assets       
Contract rights under placement fee agreements
2-7
$57,821 $14,587 $43,234 $57,821 $12,252 $45,569 
Customer relationships
3-14
331,883 238,819 93,064 331,999 233,150 98,849 
Developed technology and software
1-6
410,862 316,609 94,253 401,087 309,285 91,802 
Patents, trademarks, and other
2-18
23,823 20,899 2,924 22,334 20,279 2,055 
Total$824,389 $590,914 $233,475 $813,241 $574,966 $238,275 
Amortization expense related to other intangible assets was approximately $14.4 million and $13.6 million for the three months ended March 31, 2023 and 2022, respectively.
v3.23.1
LONG-TERM DEBT
3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
LONG-TERM DEBT LONG-TERM DEBT
The following table summarizes our indebtedness (in thousands):
 MaturityInterestAt March 31,At December 31,
 DateRate20232022
Long-term debt  
$600 million Term Loan
2028
LIBOR+2.50%
$586,500 $592,500 
$125 million Revolver
2026
LIBOR+2.50%
— — 
Senior Secured Credit Facilities586,500 592,500 
$400 million Unsecured Notes
20295.00%400,000 400,000 
Total debt986,500 992,500 
Debt issuance costs and discount(13,888)(14,505)
Total debt after debt issuance costs and discount
972,612 977,995 
Current portion of long-term debt(1,500)(6,000)
Total long-term debt, net of current portion$971,112 $971,995 
Credit Facilities
Our Senior Secured Credit Facilities consist of: (i) a seven-year $600 million senior secured term loan due 2028 issued at 99.75% of par (the “Term Loan); and (ii) a $125 million senior secured revolving credit facility due 2026, which was undrawn at closing (the “Revolver” and together with the Term Loan, the “Credit Facilities”). The Company, as borrower, entered into the credit agreement dated as of August 3, 2021 (the “Closing Date”), among the Company, the lenders party thereto and Jefferies Finance LLC, as administrative agent, collateral agent, swing line lender and a letter of credit issuer (the “Credit Agreement”).
The interest rate per annum applicable to the Credit Facilities will be, at the Company’s option, either the Eurodollar rate with a 0.50% LIBOR floor plus a margin of 2.50% or the base rate plus a margin of 1.50%. Our Revolver remained fully undrawn as of March 31, 2023.

The weighted average interest rate on the Term Loan was 7.03% for the three months ended March 31, 2023.
Senior Unsecured Notes
Our Senior Unsecured Notes (the “2029 Unsecured Notes”) had an outstanding balance of $400.0 million as of March 31, 2023 that accrues interest at a rate of 5.00% per annum and is payable semi-annually in arrears on each January 15 and July 15.
Compliance with Debt Covenants
We were in compliance with the covenants and terms of the Credit Facilities and the 2029 Unsecured Notes as of March 31, 2023.
v3.23.1
COMMITMENTS AND CONTINGENCIES
3 Months Ended
Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
We are involved in various legal proceedings in the ordinary course of our business. While we believe resolution of the claims brought against us, both individually and in the aggregate, will not have a material adverse impact on our financial condition or results of operations, litigation of this nature is inherently unpredictable. Our views on these legal proceedings, including those described below, may change in the future. We intend to vigorously defend against these actions, and ultimately believe we should prevail.

Legal Contingencies

We evaluate matters and record an accrual for legal contingencies when it is both probable that a liability has been incurred and the amount or range of the loss may be reasonably estimated. We evaluate legal contingencies at least quarterly and, as appropriate, establish new accruals or adjust existing accruals to reflect: (i) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings, and other relevant events and developments; (ii) the advice and analyses of counsel; and (iii) the assumptions and judgment of management. Legal costs associated with such proceedings are expensed as incurred. Due to the inherent uncertainty of legal proceedings as a result of the procedural, factual, and legal issues involved, the outcomes of our legal contingencies could result in losses in excess of amounts we have accrued.

NRT matter:

NRT Technology Corp., et al. v. Everi Holdings Inc., et al. is a civil action filed on April 30, 2019 against Everi Holdings and Everi FinTech in the United States District Court for the District of Delaware by NRT Technology Corp. and NRT Technology, Inc., alleging monopolization of the market for unmanned, integrated kiosks in violation of federal antitrust laws, fraudulent procurement of patents on functionality related to such unmanned, integrated kiosks and sham litigation related to prior litigation brought by Everi FinTech (operating as Global Cash Access Inc.) against the plaintiff entities. The plaintiffs are seeking compensatory damages, treble damages, and injunctive and declaratory relief. Discovery is closed. The court removed the case from the September trial calendar and requested briefs from the parties on relevant legal issues. Briefing was completed in December 2022. The parties are awaiting further guidance from the court. Due to the current stage of the litigation, we are currently unable to estimate the probability of the outcome of this matter or reasonably estimate the range of possible damages, if any.

Zenergy Systems, LLC matter:

Zenergy Systems, LLC v. Everi Payments Inc. is a civil action filed on May 29, 2020, against Everi FinTech in the United States District Court for the District of Nevada, Clark County by Zenergy Systems, LLC, alleging breach of contract, breach of a non-disclosure agreement, conversion, breach of the covenant of good faith and fair dealing, and breach of a confidential relationship related to a contract with Everi FinTech that expired in November 2019. The plaintiff is seeking compensatory and punitive damages. Everi FinTech has counterclaimed against Zenergy alleging breach of contract, breach of implied covenant of good faith and fair dealing, and for declaratory relief. The case is set for trial in June 2023. Due to the current stage of the litigation, we are currently unable to estimate the probability of the outcome of this matter or reasonably estimate the range of possible damages, if any.

Sightline Payments matter:
Sightline Payments LLC v. Everi Holdings Inc., et al. is a civil action filed on September 30, 2021, against Everi Holdings, Everi FinTech, Everi Games Holding Inc., and Everi Games (collectively referred to herein the as “Everi Parties”) in the United States District Court, Western District of Texas (Waco Division) by Sightline Payments LLC alleging patent infringement in violation of 35 U.S.C. § 271 et seq. The plaintiff’s complaint alleges that the Everi Parties’ CashClub Wallet product infringes on certain
patents owned by the plaintiff. The plaintiff is seeking compensatory damages. The Everi Parties filed a Motion to Dismiss or Transfer for Lack of Venue. On June 1, 2022, the court granted the Everi Parties’ Motion to Dismiss ruling that the Western District of Texas was not the proper venue for an action against Everi Fintech, Everi Holdings, and Everi Games. On June 23, 2022, the plaintiff, Sightline Payments LLC, filed an appeal of the District Court’s Order. The appeal is underway. Due to the current stage of the litigation, we are currently unable to estimate the probability of the outcome of this matter or reasonably estimate the range of possible damages, if any.
Sightline USPTO matters:
In a case related to the Sightline Payments matter, in February and March 2022, Everi Payments Inc. filed five Petitions for Inter Partes Review (“IPR”) with the Patent Trial and Appeal Board (the “PTAB”) of the United States Patent and Trademark Office seeking invalidation of certain claims of U.S. Patent Nos. 8,708,809, 8,998,708, 9,196,123, 9,466,176, and 9,785,926 owned by Sightline Partners LLC. In August and September 2022, decisions by the PTAB were issued granting the IPRs. Briefing and discovery is underway. Oral argument is scheduled for June 14, 2023. Due to the current stage of these matters, we are currently unable to estimate the probability of the outcome or reasonably estimate the range of possible damages, if any.

Mary Parrish matter:

Mary Parrish v. Everi Holdings Inc., et al. is a civil action filed on December 28, 2021, against Everi Holdings and Everi FinTech in the District Court of Nevada, Clark County by Mary Parrish alleging violation of the Fair and Accurate Credit Transactions Act (FACTA) amendment to the Fair Credit Reporting Act (FCRA). Plaintiff’s complaint alleges she received a printed receipt for cash access services performed at an Everi Payments’ ATM which displayed more than four (4) digits of the account number. Plaintiff seeks statutory damages, punitive damages, injunctive relief, attorneys’ fees, and other relief. Everi filed a Petition for Removal to the United States District Court, District of Nevada. Thereafter, Everi filed a Motion to Dismiss. On May 4, 2023 the United States District Court entered an order remanding the case back to the District Court of Nevada, Clark County and denying the Motion to Dismiss. Due to the early stages of the litigation, we are currently unable to estimate the probability of the outcome of this matter or reasonably estimate the range of possible damages, if any.
In addition, we have commitments with respect to certain lease obligations discussed in “Note 4 — Leases” and installment payments under our asset purchase agreements discussed in “Note 5 — Business Combinations.”
v3.23.1
STOCKHOLDERS' EQUITY
3 Months Ended
Mar. 31, 2023
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITY
In May 2022, our Board of Directors authorized and approved the existing share repurchase program in an amount not to exceed $150.0 million pursuant to which we may purchase outstanding Company common stock in open market or privately negotiated transactions over a period of eighteen (18) months through November 4, 2023, in accordance with Company and regulatory policies and trading plans established in accordance with Rules 10b5-1 and 10b-18 of the Securities Exchange Act of 1934. The actual number of shares to be purchased will depend upon market conditions and is subject to available liquidity, general market and economic conditions, alternative uses for the capital and other factors. All shares purchased will be held in the Company’s treasury for possible future use. As of March 31, 2023, Everi had approximately 88.8 million shares issued and outstanding, net of 31.4 million shares held in the Company’s treasury. There is no minimum number of shares that the Company is required to repurchase, and the program may be suspended or discontinued at any time without prior notice.
There were no shares repurchased during the three months ended March 31, 2023 and 2022, respectively. Under the existing $150.0 million share repurchase program, the remaining availability was $65.7 million as of March 31, 2023.
v3.23.1
WEIGHTED AVERAGE SHARES OF COMMON STOCK
3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
WEIGHTED AVERAGE SHARES OF COMMON STOCK WEIGHTED AVERAGE SHARES OF COMMON STOCK
The weighted average number of common stock outstanding used in the computation of basic and diluted earnings per share is as follows (in thousands):
 Three Months Ended March 31,
 20232022
Weighted average shares  
Weighted average number of common shares outstanding - basic88,355 91,408 
Potential dilution from equity awards(1)
6,426 10,063 
Weighted average number of common shares outstanding - diluted(1)
94,781 101,471 
(1) There were 0.1 million and no shares that were anti-dilutive under the treasury stock method for the three months ended March 31, 2023 and 2022, respectively.
v3.23.1
SHARE-BASED COMPENSATION
3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION
Equity Incentive Awards
Generally, we grant the following types of awards: (i) restricted stock units with either time- or performance-based criteria; and (ii) time-based options. We estimate forfeiture amounts based on historical patterns.
A summary of award activity is as follows (in thousands):
Stock Options Restricted Stock Units
Outstanding, December 31, 20226,793 2,709 
Granted— 26 
Exercised options or vested shares(703)(53)
Canceled or forfeited(7)(2)
Outstanding, March 31, 20236,083 2,680 
There were approximately 3.7 million awards of our common stock available for future equity grants under our existing equity incentive plan as of March 31, 2023
v3.23.1
INCOME TAXES
3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The income tax provision for the three months ended March 31, 2023, reflected an effective income tax rate of 17.6%, which was less than the statutory federal rate of 21.0%, primarily due to a research credit and the benefit from equity award activities, partially offset by state taxes. The income tax provision for the three months ended March 31, 2022, reflected an effective income tax rate of 23.6%, which was greater than the statutory federal rate of 21.0%, primarily due to state taxes and an accrual for foreign withholding tax, partially offset by both a research credit and the benefit from equity award activities.

We have analyzed our positions in the federal, state and foreign jurisdictions where we are required to file income tax returns, as well as the open tax years in these jurisdictions. As of March 31, 2023, we recorded approximately $2.6 million of unrecognized tax benefits, all of which would impact our effective tax rate, if recognized. We do not anticipate that our unrecognized tax benefits will materially change within the next 12 months. We have not accrued any penalties and interest for our unrecognized tax benefits. We may, from time to time, be assessed interest or penalties by tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. Our policy for recording interest and penalties associated with audits and unrecognized tax benefits is to record such items as a component of income tax in our Statements of Operations.
v3.23.1
SEGMENT INFORMATION
3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-making group (the “CODM”). Our CODM generally consists of the Chief Executive Officer and the Chief Financial Officer. Our CODM determined that our operating segments for conducting business are: (i) Games and (ii) FinTech. Our CODM allocates resources and measures profitability based on our operating segments, which are managed and reviewed separately, as each represents products and services that can be sold separately to our customers. Our segments are monitored by management for performance against our internal forecasts. We have reported our financial performance based on our segments in both the current and prior periods. Refer to “Note 1 — Business” for additional information regarding our operating segments.
Corporate overhead expenses have been allocated to the segments either through specific identification or based on a reasonable methodology. In addition, we record depreciation and amortization expenses to the business segments.
Our business is predominantly domestic with no specific regional concentrations that were material to our results of operations or financial condition, and we had no significant assets in foreign locations.
The following tables present segment information (in thousands)*:
 Three Months Ended March 31,
 20232022
Games  
Revenues  
Gaming operations$75,309 $70,338 
Gaming equipment and systems32,065 27,998 
Total revenues107,374 98,336 
Costs and expenses  
Cost of revenues(1)
  
Gaming operations6,806 5,995 
Gaming equipment and systems20,249 16,782 
Total cost of revenues27,055 22,777 
Operating expenses20,872 17,346 
Research and development10,653 7,630 
Depreciation16,239 12,981 
Amortization10,276 9,805 
Total costs and expenses85,095 70,539 
Operating income$22,279 $27,797 
(1) Exclusive of depreciation and amortization.
* Rounding may cause variances.
 Three Months Ended March 31,
 20232022
FinTech  
Revenues  
Financial access services$56,214 $49,879 
Software and other24,215 17,867 
Hardware12,669 9,534 
Total revenues93,098 77,280 
Costs and expenses  
Cost of revenues(1)
  
Financial access services2,899 2,175 
Software and other1,423 935 
Hardware8,448 5,941 
Total cost of revenues12,770 9,051 
Operating expenses38,320 32,479 
Research and development5,443 4,889 
Depreciation2,710 2,239 
Amortization4,088 3,828 
Total costs and expenses63,331 52,486 
Operating income$29,767 $24,794 
(1)  Exclusive of depreciation and amortization.
* Rounding may cause variances.
 At March 31,At December 31,
 20232022
Total assets  
Games$888,114 $911,907 
FinTech855,456 1,006,336 
Total assets$1,743,570 $1,918,243 
Major Customers. No single customer accounted for more than 10% of our revenues for the three months ended March 31, 2023 and 2022. Our five largest customers accounted for approximately 13% and 15% of our revenues for the three months ended March 31, 2023 and 2022, respectively.
v3.23.1
SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
Acquisition
On April 7, 2023, the Company entered into a purchase agreement to acquire certain strategic assets of VKGS LLC (“Video King”), a privately owned leading provider of integrated electronic bingo gaming tablets, video gaming content, instant win games and systems. The transaction closed on May 1, 2023 (the “Video King Closing Date”).
The acquisition provides Everi with complementary assets and an established customer base to enable additional growth in its Games segment. Currently licensed in approximately 60 jurisdictions, Video King expands the addressable market for Everi’s player-popular digital gaming content.
Under the terms of the purchase agreement, the closing cash consideration was approximately $59 million, inclusive of estimated customary net working capital adjustments.
This transaction will be accounted for as a business combination. As a result of the timing of the acquisition, the initial accounting treatment is still being determined; and accordingly, certain disclosures were not available at the time the financial statements were issued. The acquisition is not expected to have a material impact on our results of operations or financial condition.
Share Repurchase Program
On May 3, 2023, our Board of Directors authorized and approved a new share repurchase program in an amount not to exceed $180 million, pursuant to which we may purchase outstanding Company common stock in open market or privately negotiated transactions over a period of eighteen (18) months through November 3, 2024, in accordance with Company and regulatory policies and trading plans established in accordance with Rules 10b5-1 and 10b-18 of the Securities Exchange Act of 1934. The actual number of shares to be purchased will depend upon market conditions and is subject to available liquidity, general market and economic conditions, alternative uses for the capital and other factors. All shares purchased will be held in the Company’s treasury for possible future use. As of March 31, 2023, Everi had approximately 88.8 million shares issued and outstanding, net of 31.4 million shares held in the Company’s treasury. There is no minimum number of shares that the Company is required to repurchase, and the program may be suspended or discontinued at any time without prior notice. This new repurchase program supersedes and replaces, in its entirety, the previous share repurchase program.
v3.23.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
Our unaudited condensed consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Some of the information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. The results for the three months ended March 31, 2023 are not necessarily indicative of results to be expected for the full fiscal year. The Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the most recently filed Annual Report.
Restricted Cash Restricted CashOur restricted cash primarily consists of: (i) funds held in connection with certain customer agreements; (ii) funds held in connection with a sponsorship agreement; and (iii) wide-area progressive (“WAP”)-related restricted funds.
Fair Values of Financial Instruments
Fair Values of Financial Instruments
The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument.
The carrying amount of cash and cash equivalents, restricted cash, settlement receivables, short-term trade and other receivables, settlement liabilities, accounts payable, and accrued expenses approximate fair value due to the short-term maturities of these instruments. The fair value of the long-term trade and loans receivable is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. The fair value of long-term accounts payable is estimated by discounting the total obligation.
Reclassification of Balances
Reclassification of Balances
Certain amounts in the accompanying consolidated financial statements and accompanying notes have been reclassified to be consistent with the current year presentation. These reclassifications had no effect on net income for the prior periods.
Recent Accounting Guidance
Recent Accounting Guidance
As of March 31, 2023, no recent accounting guidance is expected to have a significant impact on our consolidated financial statements.
Revenue
Overview
We evaluate the recognition of revenue based on the criteria set forth in Accounting Standards Codification (“ASC”) 606 — Revenue from Contracts with Customers and ASC 842 — Leases, as appropriate. We recognize revenue upon transferring control of goods or services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We enter into contracts with customers that include various performance obligations consisting of goods, services, or combinations of goods and services. Timing of the transfer of control varies based on the nature of the contract. We recognize revenue net of any sales and other taxes collected from customers, which are subsequently remitted to governmental authorities and are not included in revenues or operating expenses. We measure revenue based on the consideration specified in a contract with a customer and adjusted, as necessary.
Disaggregation of Revenues
We disaggregate revenues based on the nature and timing of the cash flows generated by such revenues as presented in “Note 17 — Segment Information.”
Contract Balances
Since our contracts may include multiple performance obligations, there is often a timing difference between cash collections and the satisfaction of such performance obligations and revenue recognition. Such arrangements are evaluated to determine whether contract assets and liabilities exist. We generally record contract assets when the timing of billing differs from when revenue is recognized due to contracts containing specific performance obligations that are required to be met prior to a customer being invoiced. We generally record contract liabilities when cash is collected in advance of us satisfying performance obligations, including those that are satisfied over a period of time. Balances of our contract assets and contract liabilities may fluctuate due to timing of cash collections.
v3.23.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Reconciliation of Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows for the three months ended March 31, 2023 (in thousands).
Classification on our Balance Sheets
At March 31, 2023
At December 31, 2022
Cash and cash equivalentsCash and cash equivalents$293,207 $293,394 
Restricted cash - currentPrepaid expenses and other current assets2,395 1,568 
Restricted cash - non-currentOther assets101 101 
Total$295,703 $295,063 
Reconciliation of Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows for the three months ended March 31, 2023 (in thousands).
Classification on our Balance Sheets
At March 31, 2023
At December 31, 2022
Cash and cash equivalentsCash and cash equivalents$293,207 $293,394 
Restricted cash - currentPrepaid expenses and other current assets2,395 1,568 
Restricted cash - non-currentOther assets101 101 
Total$295,703 $295,063 
Estimated Fair Value and Outstanding Balances of Borrowings The estimated fair value and outstanding balances of our borrowings are as follows (dollars in thousands):
 Level of HierarchyFair ValueOutstanding Balance
March 31, 2023   
$600 million Term Loan
2$584,301 $586,500 
$400 million Unsecured Notes
2$358,000 $400,000 
December 31, 2022   
$600 million Term Loan
2$588,560 $592,500 
$400 million Unsecured Notes
2$346,000 $400,000 
v3.23.1
REVENUES (Tables)
3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Contract Asset and Liability
The following table summarizes our contract assets and contract liabilities arising from contracts with customers (in thousands):
20232022
Contract assets(1)
Balance, beginning of period$22,417 $15,221 
Balance, end of period22,342 14,514 
         Decrease$(75)$(707)
Contract liabilities(2)
Balance, beginning of period$53,419 $36,615 
Balance, end of period51,705 39,090 
        (Decrease) increase$(1,714)$2,475 
(1) Contract assets are included within trade and other receivables, net and other receivables in our Balance Sheets.
(2) Contract liabilities are included within accounts payable and accrued expenses and other accrued expenses and liabilities in our Balance Sheets.
v3.23.1
LEASES (Tables)
3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Balance Sheet Information
Balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance Sheets
At March 31, 2023
At December 31, 2022
Assets
Operating lease right-of-use (“ROU”) assetsOther assets, non-current$15,921 $17,169 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$6,489 $6,507 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$13,205 $14,738 
Cash Flow Information
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended March 31,
20232022
Cash paid for:
Long-term operating leases$1,712 $1,668 
Short-term operating leases$372 $409 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
$86 $5,947 
Lease Costs
Other information related to lease terms and discount rates is as follows:
At March 31, 2023At December 31, 2022
Weighted Average Remaining Lease Term (in years):
Operating leases3.173.37
Weighted Average Discount Rate:
Operating leases4.73 %4.72 %
Components of lease expense are as follows (in thousands):
Three Months Ended March 31,
20232022
Operating Lease Cost:
Operating lease cost
$1,477 $1,362 
Variable lease cost $319 $279 
Payments Due
Maturities of lease liabilities are summarized as follows as of March 31, 2023 (in thousands):

Year Ending December 31, Amount
2023 (excluding the three months ended March 31, 2023)
$5,533 
2024
6,732 
2025
5,852 
2026
2,137 
2027
608 
Thereafter359 
Total future minimum lease payments 21,221 
Less: Amount representing interest 1,527 
Present value of future minimum lease payments19,694 
Less: Current operating lease obligations6,489 
Long-term lease obligations$13,205 
v3.23.1
TRADE AND OTHER RECEIVABLES (Tables)
3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Schedule of Components of Trade and Other Receivables
The balance of trade and other receivables consisted of the following (in thousands):
 At March 31,At December 31,
20232022
Trade and other receivables, net  
Games trade and loans receivable$73,365 $78,200 
FinTech trade and loans receivable
43,775 39,925 
Contract assets(1)
22,342 22,417 
Other receivables4,066 6,110 
Total trade and other receivables, net143,548 146,652 
Non-current portion of receivables  
Games trade and loans receivable892 1,382 
FinTech trade and loans receivable
18,225 16,519 
Contract assets(1)
9,188 9,856 
Total non-current portion of receivables28,305 27,757 
Total trade and other receivables, current portion$115,243 $118,895 
(1) Refer to “Note 3 — Revenues” for a discussion on the contract assets.
Activity in Allowance for Credit Losses
The activity in our allowance for credit losses for the three months ended March 31, 2023 and 2022 is as follows (in thousands):
Three Months Ended March 31,
20232022
Beginning allowance for credit losses$(4,855)$(5,161)
Provision(3,078)(1,947)
Charge-offs, net of recoveries2,738 2,085 
Ending allowance for credit losses$(5,195)$(5,023)
v3.23.1
INVENTORY (Tables)
3 Months Ended
Mar. 31, 2023
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
Inventory consisted of the following (in thousands):
 At March 31,At December 31,
 20232022
Inventory  
Component parts$58,781 $48,688 
Work-in-progress4,073 323 
Finished goods5,754 9,339 
Total inventory$68,608 $58,350 
v3.23.1
PROPERTY AND EQUIPMENT (Tables)
3 Months Ended
Mar. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Components of Property, Equipment and Leased Assets
Property and equipment consist of the following (in thousands):
  At March 31, 2023At December 31, 2022
Useful Life
(Years)
CostAccumulated
Depreciation
Net Book
Value
CostAccumulated
Depreciation
Net Book
Value
Property and equipment       
Rental pool - deployed
2-4
$284,028 $196,292 $87,736 $279,524 $188,369 $91,155 
Rental pool - undeployed
2-4
32,239 24,691 7,548 30,378 23,930 6,448 
FinTech equipment
1-5
36,749 25,038 11,711 36,442 24,167 12,275 
Leasehold and building improvementsLease Term13,747 11,097 2,650 13,666 10,689 2,977 
Machinery, office, and other equipment
1-5
58,818 36,191 22,627 55,246 34,456 20,790 
Total $425,581 $293,309 $132,272 $415,256 $281,611 $133,645 
v3.23.1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Other Intangible Assets
Other intangible assets consist of the following (in thousands):
  At March 31, 2023At December 31, 2022
Useful Life
(Years)
CostAccumulated
Amortization
Net Book
Value
CostAccumulated
Amortization
Net Book
Value
Other intangible assets       
Contract rights under placement fee agreements
2-7
$57,821 $14,587 $43,234 $57,821 $12,252 $45,569 
Customer relationships
3-14
331,883 238,819 93,064 331,999 233,150 98,849 
Developed technology and software
1-6
410,862 316,609 94,253 401,087 309,285 91,802 
Patents, trademarks, and other
2-18
23,823 20,899 2,924 22,334 20,279 2,055 
Total$824,389 $590,914 $233,475 $813,241 $574,966 $238,275 
v3.23.1
LONG-TERM DEBT (Tables)
3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Outstanding Indebtedness
The following table summarizes our indebtedness (in thousands):
 MaturityInterestAt March 31,At December 31,
 DateRate20232022
Long-term debt  
$600 million Term Loan
2028
LIBOR+2.50%
$586,500 $592,500 
$125 million Revolver
2026
LIBOR+2.50%
— — 
Senior Secured Credit Facilities586,500 592,500 
$400 million Unsecured Notes
20295.00%400,000 400,000 
Total debt986,500 992,500 
Debt issuance costs and discount(13,888)(14,505)
Total debt after debt issuance costs and discount
972,612 977,995 
Current portion of long-term debt(1,500)(6,000)
Total long-term debt, net of current portion$971,112 $971,995 
v3.23.1
WEIGHTED AVERAGE SHARES OF COMMON STOCK (Tables)
3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Weighted Average Number of Shares
The weighted average number of common stock outstanding used in the computation of basic and diluted earnings per share is as follows (in thousands):
 Three Months Ended March 31,
 20232022
Weighted average shares  
Weighted average number of common shares outstanding - basic88,355 91,408 
Potential dilution from equity awards(1)
6,426 10,063 
Weighted average number of common shares outstanding - diluted(1)
94,781 101,471 
(1) There were 0.1 million and no shares that were anti-dilutive under the treasury stock method for the three months ended March 31, 2023 and 2022, respectively.
v3.23.1
SHARE-BASED COMPENSATION (Tables)
3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of Award Activity
A summary of award activity is as follows (in thousands):
Stock Options Restricted Stock Units
Outstanding, December 31, 20226,793 2,709 
Granted— 26 
Exercised options or vested shares(703)(53)
Canceled or forfeited(7)(2)
Outstanding, March 31, 20236,083 2,680 
v3.23.1
SEGMENT INFORMATION (Tables)
3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Schedule of Segment Information
The following tables present segment information (in thousands)*:
 Three Months Ended March 31,
 20232022
Games  
Revenues  
Gaming operations$75,309 $70,338 
Gaming equipment and systems32,065 27,998 
Total revenues107,374 98,336 
Costs and expenses  
Cost of revenues(1)
  
Gaming operations6,806 5,995 
Gaming equipment and systems20,249 16,782 
Total cost of revenues27,055 22,777 
Operating expenses20,872 17,346 
Research and development10,653 7,630 
Depreciation16,239 12,981 
Amortization10,276 9,805 
Total costs and expenses85,095 70,539 
Operating income$22,279 $27,797 
(1) Exclusive of depreciation and amortization.
* Rounding may cause variances.
 Three Months Ended March 31,
 20232022
FinTech  
Revenues  
Financial access services$56,214 $49,879 
Software and other24,215 17,867 
Hardware12,669 9,534 
Total revenues93,098 77,280 
Costs and expenses  
Cost of revenues(1)
  
Financial access services2,899 2,175 
Software and other1,423 935 
Hardware8,448 5,941 
Total cost of revenues12,770 9,051 
Operating expenses38,320 32,479 
Research and development5,443 4,889 
Depreciation2,710 2,239 
Amortization4,088 3,828 
Total costs and expenses63,331 52,486 
Operating income$29,767 $24,794 
(1)  Exclusive of depreciation and amortization.
* Rounding may cause variances.
 At March 31,At December 31,
 20232022
Total assets  
Games$888,114 $911,907 
FinTech855,456 1,006,336 
Total assets$1,743,570 $1,918,243 
v3.23.1
BUSINESS - Narrative (Details)
3 Months Ended
Mar. 31, 2023
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of business segments 2
v3.23.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Contract with customer liability $ 18,200 $ 12,700  
Total revenues $ 200,472 175,616  
Contractual terms of trade and loans receivable 12 months   12 months
Games      
Disaggregation of Revenue [Line Items]      
Total revenues $ 107,374 98,336  
Games | Gaming operations, leased equipment      
Disaggregation of Revenue [Line Items]      
Total revenues $ 49,400 $ 47,100  
v3.23.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Cash (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2022
Dec. 31, 2021
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 293,207 $ 293,394    
Restricted Cash, Current, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets Prepaid expenses and other current assets    
Restricted cash - current $ 2,395 $ 1,568    
Restricted Cash, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other assets Other assets    
Restricted cash - non-current $ 101 $ 101    
Total 295,703 295,063 $ 271,035 $ 303,726
Cash and Cash Equivalents        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 293,207 $ 293,394    
v3.23.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Fair Value and Outstanding Balances of Borrowings (Details) - USD ($)
Mar. 31, 2023
Dec. 31, 2022
Aug. 03, 2021
Senior secured notes | New Revolver      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Principal amount of debt $ 600,000,000 $ 600,000,000 $ 600,000,000
Senior unsecured notes | 2021 Unsecured Notes      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Principal amount of debt 400,000,000 400,000,000  
Fair Value | Level 2 | New Term Loan      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Long-term debt 584,301,000 588,560,000  
Fair Value | Level 2 | Incremental Term Loan      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Long-term debt 358,000,000 346,000,000  
Outstanding Balance | Level 2 | New Term Loan      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Long-term debt 586,500,000 592,500,000  
Outstanding Balance | Level 2 | Incremental Term Loan      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Long-term debt $ 400,000,000 $ 400,000,000  
v3.23.1
REVENUES - Contract Asset and Liability (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Contract assets    
Balance, beginning of period $ 22,417 $ 15,221
Balance, end of period 22,342 14,514
Decrease (75) (707)
Contract liabilities    
Balance, beginning of period 53,419 36,615
Balance, end of period 51,705 39,090
(Decrease) increase $ (1,714) $ 2,475
v3.23.1
REVENUES (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Disaggregation of Revenue [Line Items]    
Contract with customer liability $ 18,200 $ 12,700
Total revenues 200,472 175,616
Games    
Disaggregation of Revenue [Line Items]    
Total revenues 107,374 98,336
Gaming operations, leased equipment | Games    
Disaggregation of Revenue [Line Items]    
Total revenues $ 49,400 $ 47,100
v3.23.1
LEASES - Narrative (Details)
$ in Millions
Mar. 31, 2023
USD ($)
Lessee, Lease, Description [Line Items]  
Lease not yet commenced, term of contract 10 years
Lease not yet commenced $ 27.3
v3.23.1
LEASES - Balance Sheet Information (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Other assets Other assets
Operating lease right-of-use (“ROU”) assets $ 15,921 $ 17,169
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accounts payable and accrued expenses Accounts payable and accrued expenses
Current operating lease liabilities $ 6,489 $ 6,507
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other accrued expenses and liabilities Other accrued expenses and liabilities
Non-current operating lease liabilities $ 13,205 $ 14,738
v3.23.1
LEASES - Cash Flow Information (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Cash paid for:    
Long-term operating leases $ 1,712 $ 1,668
Short-term operating leases 372 409
Right-of-use assets obtained in exchange for lease obligations:    
Operating leases $ 86 $ 5,947
v3.23.1
LEASES - Lease Costs (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Leases [Abstract]      
Weighted average remaining lease term, operating leases 3 years 2 months 1 day   3 years 4 months 13 days
Weighted average discount rate, operating leases 4.73%   4.72%
Operating lease cost $ 1,477 $ 1,362  
Variable lease cost $ 319 $ 279  
v3.23.1
LEASES - Payments Due (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Amount    
2023 (excluding the three months ended March 31, 2023) $ 5,533  
2024 6,732  
2025 5,852  
2026 2,137  
2027 608  
Thereafter 359  
Total future minimum lease payments 21,221  
Less: Amount representing interest 1,527  
Present value of future minimum lease payments 19,694  
Current operating lease liabilities 6,489 $ 6,507
Long-term lease obligations $ 13,205 $ 14,738
v3.23.1
BUSINESS COMBINATIONS - Narrative (Details)
$ in Millions, $ in Millions
3 Months Ended 12 Months Ended
Oct. 14, 2022
USD ($)
Apr. 30, 2022
USD ($)
Mar. 01, 2022
AUD ($)
Mar. 01, 2022
USD ($)
Mar. 31, 2023
USD ($)
Jun. 30, 2022
AUD ($)
Jun. 30, 2022
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2022
business
Business Acquisition [Line Items]                  
Number of acquired businesses | business                 3
Business Combination, Contingent Consideration, Period One                  
Business Acquisition [Line Items]                  
Revenue target anniversary 12 months                
Business Combination, Contingent Consideration, Period Two                  
Business Acquisition [Line Items]                  
Revenue target anniversary 24 months                
Business Combination, Contingent Consideration, Period Three                  
Business Acquisition [Line Items]                  
Revenue target anniversary 30 months                
ecash Holdings Pty Limited                  
Business Acquisition [Line Items]                  
Acquisition business gross     $ 20.0 $ 15.0          
Payments for excess net working capital           $ 8.7 $ 6.0    
Business combination, consideration transfer         $ 2.3        
ecash Holdings Pty Limited | Tranche One                  
Business Acquisition [Line Items]                  
Contingent consideration     $ 6.5            
Contingent consideration, period since closing     1 year 1 year          
ecash Holdings Pty Limited | Tranche Two                  
Business Acquisition [Line Items]                  
Contingent consideration     $ 6.5            
Contingent consideration, period since closing     2 years 2 years          
Intuicode                  
Business Acquisition [Line Items]                  
Acquisition business gross   $ 12.5              
Business Combination, Consideration Transferred, Liabilities Incurred             $ 1.6    
Business combination, contingent consideration, earn-out liability   $ 13.0              
Business combination, consideration transfer         27.1        
Cash payments, noncurrent, payment period   2 years              
Revenue since acquisition date         3.1        
Net loss since acquisition date         $ 1.2        
Intuicode | Measurement Input, Discount Rate                  
Business Acquisition [Line Items]                  
Acquired business discount rate         0.05        
Venuetize, Inc.                  
Business Acquisition [Line Items]                  
Acquisition business gross $ 18.2                
Business combination, contingent consideration, earn-out liability 2.8                
Business combination, consideration transfer $ 21.0                
Cash payments, noncurrent, payment period 3 years                
Revenue since acquisition date         $ 0.8        
Net loss since acquisition date         $ 1.2        
Venuetize, Inc. | Measurement Input, Discount Rate                  
Business Acquisition [Line Items]                  
Acquired business discount rate 0.07                
ecash Holdings Pty Limited and Intuicode Gaming Corporation                  
Business Acquisition [Line Items]                  
Pro forma revenue               $ 186.1  
Pro forma net income (loss)               $ 29.9  
v3.23.1
FUNDING AGREEMENTS (Details) - Indemnification Guarantee - USD ($)
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Contract Cash Solutions Agreement      
Funding Agreements      
Cash usage fees incurred $ 4,300,000 $ 1,000,000  
Outstanding balance 339,200,000   $ 444,600,000
Contract Cash Solutions Agreement, as amended      
Funding Agreements      
Maximum amount $ 300,000,000    
Renewal period 1 year    
Guarantor obligations, non-renewal notice period 90 days    
v3.23.1
TRADE AND OTHER RECEIVABLES - Schedule of Components of Trade and Other Receivables (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Trade and other receivables, net    
Contract assets $ 22,342 $ 22,417
Other receivables 4,066 6,110
Total trade and other receivables, net 143,548 146,652
Non-current portion of receivables 28,305 27,757
Contract assets 9,188 9,856
Total trade and other receivables, current portion 115,243 118,895
Gaming operations    
Trade and other receivables, net    
Trade receivables, net 73,365 78,200
Non-current portion of receivables 892 1,382
FinTech    
Trade and other receivables, net    
Trade receivables, net 43,775 39,925
Non-current portion of receivables $ 18,225 $ 16,519
v3.23.1
TRADE AND OTHER RECEIVABLES - Activity in Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning allowance for credit losses $ (4,855) $ (5,161)
Provision (3,078) (1,947)
Charge-offs, net of recoveries 2,738 2,085
Ending allowance for credit losses $ (5,195) $ (5,023)
v3.23.1
INVENTORY (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Inventory    
Component parts $ 58,781 $ 48,688
Work-in-progress 4,073 323
Finished goods 5,754 9,339
Total inventory $ 68,608 $ 58,350
v3.23.1
PROPERTY AND EQUIPMENT - Schedule of Components of Property, Equipment and Leased Assets (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Cost $ 425,581   $ 415,256
Accumulated Depreciation 293,309   281,611
Net Book Value 132,272   133,645
Depreciation 18,949 $ 15,220  
Rental pool - deployed      
Property, Plant and Equipment [Line Items]      
Cost 284,028   279,524
Accumulated Depreciation 196,292   188,369
Net Book Value $ 87,736   91,155
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 $ 32,239   30,378
Accumulated Depreciation 24,691   23,930
Net Book Value $ 7,548   6,448
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    
Machinery, office, and other equipment      
Property, Plant and Equipment [Line Items]      
Cost $ 58,818   55,246
Accumulated Depreciation 36,191   34,456
Net Book Value $ 22,627   20,790
Machinery, office, and other equipment | Minimum      
Property, Plant and Equipment [Line Items]      
Useful Life (Years) 1 year    
Machinery, office, and other equipment | Maximum      
Property, Plant and Equipment [Line Items]      
Useful Life (Years) 5 years    
Leasehold and building improvements      
Property, Plant and Equipment [Line Items]      
Cost $ 13,747   13,666
Accumulated Depreciation 11,097   10,689
Net Book Value 2,650   2,977
FinTech      
Property, Plant and Equipment [Line Items]      
Depreciation 2,710 $ 2,239  
FinTech | Machinery, office, and other equipment      
Property, Plant and Equipment [Line Items]      
Cost 36,749   36,442
Accumulated Depreciation 25,038   24,167
Net Book Value $ 11,711   $ 12,275
FinTech | Machinery, office, and other equipment | Minimum      
Property, Plant and Equipment [Line Items]      
Useful Life (Years) 1 year    
FinTech | Machinery, office, and other equipment | Maximum      
Property, Plant and Equipment [Line Items]      
Useful Life (Years) 5 years    
v3.23.1
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill $ 717,731   $ 715,870
Amortization of intangible assets $ 14,400 $ 13,600  
v3.23.1
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Cost $ 824,389 $ 813,241
Accumulated Amortization 590,914 574,966
Net Book Value 233,475 238,275
Contract rights under placement fee agreements    
Finite-Lived Intangible Assets [Line Items]    
Cost 57,821 57,821
Accumulated Amortization 14,587 12,252
Net Book Value $ 43,234 45,569
Contract rights under placement fee agreements | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 2 years  
Contract rights under placement fee agreements | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 7 years  
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 331,883 331,999
Accumulated Amortization 238,819 233,150
Net Book Value $ 93,064 98,849
Customer relationships | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 3 years  
Customer relationships | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 14 years  
Developed technology and software    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 410,862 401,087
Accumulated Amortization 316,609 309,285
Net Book Value $ 94,253 91,802
Developed technology and software | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 1 year  
Developed technology and software | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 6 years  
Patents, trademarks, and other    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 23,823 22,334
Accumulated Amortization 20,899 20,279
Net Book Value $ 2,924 $ 2,055
Patents, trademarks, and other | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 2 years  
Patents, trademarks, and other | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 18 years  
v3.23.1
LONG-TERM DEBT - Schedule of Outstanding Indebtedness (Details) - USD ($)
3 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Aug. 03, 2021
Debt Instrument [Line Items]      
Total debt $ 986,500,000 $ 992,500,000  
Debt issuance costs and discount (13,888,000) (14,505,000)  
Total debt after debt issuance costs and discount 972,612,000 977,995,000  
Current portion of long-term debt (1,500,000) (6,000,000)  
Total long-term debt, net of current portion 971,112,000 971,995,000  
Senior secured notes | New Revolver      
Debt Instrument [Line Items]      
Principal amount of debt $ 600,000,000 600,000,000 $ 600,000,000
Senior secured notes | New Revolver | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Basis spread 2.50%    
Revolving credit facility | New Revolver      
Debt Instrument [Line Items]      
Total debt $ 0 0  
Principal amount of debt $ 125,000,000    
Revolving credit facility | New Revolver | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Basis spread 2.50%    
Senior secured notes      
Debt Instrument [Line Items]      
Total debt $ 586,500,000 592,500,000  
Senior secured notes | Senior secured notes | New Revolver      
Debt Instrument [Line Items]      
Total debt 586,500,000 592,500,000  
Senior unsecured notes | 2021 Unsecured Notes      
Debt Instrument [Line Items]      
Total debt 400,000,000 400,000,000  
Principal amount of debt $ 400,000,000 $ 400,000,000  
Interest rate 5.00%    
v3.23.1
LONG-TERM DEBT - Narrative (Details)
3 Months Ended
Aug. 03, 2021
USD ($)
Mar. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Senior unsecured notes | FinTech Segment      
Debt Instrument [Line Items]      
Principal amount of debt   $ 400,000,000  
New Credit Facilities | Eurodollar      
Debt Instrument [Line Items]      
Basis spread 0.50%    
New Credit Facilities | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Basis spread 2.50%    
New Credit Facilities | Base Rate      
Debt Instrument [Line Items]      
Basis spread 1.50%    
2017 Unsecured Notes | Senior unsecured notes      
Debt Instrument [Line Items]      
Interest rate   5.00%  
Senior secured notes | New Revolver      
Debt Instrument [Line Items]      
Debt term 7 years    
Principal amount of debt $ 600,000,000 $ 600,000,000 $ 600,000,000
Percentage of par amount issued 0.9975    
Senior secured notes | New Revolver | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Basis spread   2.50%  
Revolving credit facility | New Revolver      
Debt Instrument [Line Items]      
Principal amount of debt   $ 125,000,000  
Maximum borrowing capacity $ 125,000,000    
Revolving credit facility | New Revolver | London Interbank Offered Rate (LIBOR)      
Debt Instrument [Line Items]      
Basis spread   2.50%  
Incremental Term Loan | Incremental Term Loan Credit Agreement April 21, 2020      
Debt Instrument [Line Items]      
Weighted average interest rate during period   7.03%  
v3.23.1
STOCKHOLDERS' EQUITY (Details) - USD ($)
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
May 04, 2022
Stockholders' Equity Note [Abstract]        
Stock repurchase program, authorized amount       $ 150,000,000
Stock repurchase program, period in force 18 months      
Common stock outstanding (in shares) 88,773,000   88,036,000  
Treasury stock (in shares) 31,373,000   31,353,000  
Treasury stock acquired (in shares) 0 0    
Stock repurchase program, remaining authorized repurchase amount $ 65,700,000      
v3.23.1
WEIGHTED AVERAGE SHARES OF COMMON STOCK - Schedule of Weighted Average Number of Shares (Details) - shares
shares in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Weighted average shares    
Weighted average number of common shares outstanding - basic (in shares) 88,355 91,408
Potential dilution from equity awards (in shares) 6,426 10,063
Weighted average number of common shares outstanding - diluted (in shares) 94,781 101,471
Anti-dilutive equity awards excluded from computation of earnings per share (in shares) 100 0
v3.23.1
SHARE-BASED COMPENSATION - Summary of Award Activity (Details)
shares in Thousands
3 Months Ended
Mar. 31, 2023
shares
Stock Options  
Stock Options  
Outstanding (in shares) 6,793
Granted (in shares) 0
Exercised options (in shares) (703)
Canceled or forfeited (in shares) (7)
Outstanding (in shares) 6,083
Restricted Stock Units  
Restricted Stock Units  
Outstanding (in shares) 2,709
Granted (in shares) 26
Vested (in shares) (53)
Canceled or forfeited (in shares) (2)
Outstanding (in shares) 2,680
Common Stock  
Restricted Stock Units  
Number of shares available for grant (in shares) 3,700
v3.23.1
INCOME TAXES (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Income Tax Disclosure [Abstract]    
Effective income tax rate 17.60% 23.60%
Statutory federal rate 21.00% 21.00%
Unrecognized tax benefits $ 2.6  
v3.23.1
SEGMENT INFORMATION - Revenues, Operating Income, and Assets (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Revenues      
Total revenues $ 200,472 $ 175,616  
Costs and expenses      
Operating expenses 59,192 49,825  
Research and development 16,096 12,519  
Depreciation 18,949 15,220  
Amortization 14,364 13,633  
Total costs and expenses 148,426 123,025  
Operating income 52,046 52,591  
Total assets      
Total assets 1,743,570   $ 1,918,243
Games      
Revenues      
Total revenues 107,374 98,336  
Costs and expenses      
Total cost of revenues [1] 27,055 22,777  
Operating expenses 20,872 17,346  
Research and development 10,653 7,630  
Depreciation 16,239 12,981  
Amortization 10,276 9,805  
Total costs and expenses 85,095 70,539  
Operating income 22,279 27,797  
Total assets      
Total assets 888,114   911,907
Games | Gaming operations      
Revenues      
Total revenues 75,309 70,338  
Costs and expenses      
Total cost of revenues [1] 6,806 5,995  
Games | Gaming equipment and systems      
Revenues      
Total revenues 32,065 27,998  
Costs and expenses      
Total cost of revenues [1] 20,249 16,782  
FinTech      
Revenues      
Total revenues 93,098 77,280  
Costs and expenses      
Total cost of revenues [1] 12,770 9,051  
Operating expenses 38,320 32,479  
Research and development 5,443 4,889  
Depreciation 2,710 2,239  
Amortization 4,088 3,828  
Total costs and expenses 63,331 52,486  
Operating income 29,767 24,794  
Total assets      
Total assets 855,456   $ 1,006,336
FinTech | Financial access services      
Revenues      
Total revenues 56,214 49,879  
Costs and expenses      
Total cost of revenues [1] 2,899 2,175  
FinTech | Software and other      
Revenues      
Total revenues 24,215 17,867  
Costs and expenses      
Total cost of revenues [1] 1,423 935  
FinTech | Hardware      
Revenues      
Total revenues 12,669 9,534  
Costs and expenses      
Total cost of revenues [1] $ 8,448 $ 5,941  
[1] (1) Exclusive of depreciation and amortization.
EVERI HOLDINGS INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - CONTINUED
(In thousands, except earnings per share amounts)
v3.23.1
SEGMENT INFORMATION - Major Customers (Details)
3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Five largest customers | Customer risk | Revenue from Contract with Customer    
Revenue, Major Customer [Line Items]    
Concentration risk, percentage 13.00% 15.00%
v3.23.1
SUBSEQUENT EVENTS (Details) - USD ($)
3 Months Ended
May 03, 2023
Apr. 07, 2023
Mar. 31, 2023
Dec. 31, 2022
May 04, 2022
Business Acquisition [Line Items]          
Stock repurchase program, authorized amount         $ 150,000,000
Stock repurchase program, period in force     18 months    
Common stock outstanding (in shares)     88,773,000 88,036,000  
Treasury stock (in shares)     31,373,000 31,353,000  
Subsequent Event          
Business Acquisition [Line Items]          
Stock repurchase program, authorized amount $ 180,000,000        
Stock repurchase program, period in force 18 months        
Video King | Subsequent Event          
Business Acquisition [Line Items]          
Acquisition business gross   $ 59,000,000