EVERI HOLDINGS INC., 10-Q filed on 11/8/2022
Quarterly Report
v3.22.2.2
Cover - shares
 9 Months Ended
Sep. 30, 2022
Nov. 03, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2022  
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, $0.001 par value  
Trading Symbol EVRI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   89,466,734
Entity Central Index Key 0001318568  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q3  
v3.22.2.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Revenues        
Total revenues $ 204,318 $ 168,302 $ 577,156 $ 479,997
Costs and expenses        
Operating expenses 56,354 47,121 161,230 133,320
Research and development 16,803 9,598 43,386 26,799
Depreciation 17,444 14,463 48,342 46,571
Amortization 15,303 14,596 43,582 43,680
Total costs and expenses 149,700 113,229 415,398 330,341
Operating income 54,618 55,073 161,758 149,656
Other expenses        
Interest expense, net of interest income 14,880 14,257 38,522 50,488
Loss on extinguishment of debt 0 34,389 0 34,389
Total other expenses 14,880 48,646 38,522 84,877
Income before income tax 39,738 6,427 123,236 64,779
Income tax provision (benefit) 10,329 (319) 29,784 1,285
Net income 29,409 6,746 93,452 63,494
Foreign currency translation loss (2,639) (442) (4,665) (335)
Comprehensive income $ 26,770 $ 6,304 $ 88,787 $ 63,159
Earnings per share        
Basic (in dollars per share) $ 0.33 $ 0.07 $ 1.03 $ 0.72
Diluted (in dollars per share) $ 0.30 $ 0.07 $ 0.95 $ 0.64
Weighted average common shares outstanding        
Basic (in shares) 90,014 90,322 91,039 88,688
Diluted (in shares) 96,436 101,359 98,306 99,581
Games        
Revenues        
Total revenues $ 112,520 $ 95,833 $ 323,203 $ 271,321
Costs and expenses        
Cost of revenues [1] 29,102 19,178 81,395 54,834
Operating expenses 19,860 16,711 57,886 48,871
Research and development 11,298 6,445 28,395 17,966
Depreciation 15,006 12,495 41,321 41,122
Amortization 11,472 10,805 31,744 32,464
Total costs and expenses 86,738 65,634 240,741 195,257
Operating income 25,782 30,199 82,462 76,064
Games | Gaming operations        
Revenues        
Total revenues 74,979 71,580 219,311 202,941
Costs and expenses        
Cost of revenues [1] 6,557 5,675 18,674 15,776
Games | Gaming equipment and systems        
Revenues        
Total revenues 37,500 24,220 103,766 68,298
Costs and expenses        
Cost of revenues [1] 22,545 13,503 62,721 39,058
Games | Gaming other        
Revenues        
Total revenues 41 33 126 82
FinTech        
Revenues        
Total revenues 91,798 72,469 253,953 208,676
Costs and expenses        
Cost of revenues [1] 14,694 8,273 37,463 25,137
Operating expenses 36,494 30,410 103,344 84,449
Research and development 5,505 3,153 14,991 8,833
Depreciation 2,438 1,968 7,021 5,449
Amortization 3,831 3,791 11,838 11,216
Total costs and expenses 62,962 47,595 174,657 135,084
Operating income 28,836 24,874 79,296 73,592
FinTech | Financial access services        
Revenues        
Total revenues 53,296 46,421 154,051 129,973
Costs and expenses        
Cost of revenues [1] 2,760 1,830 7,405 4,863
FinTech | Software and other        
Revenues        
Total revenues 22,192 17,024 59,056 49,874
Costs and expenses        
Cost of revenues [1] 1,163 1,063 2,984 3,196
FinTech | Hardware        
Revenues        
Total revenues 16,310 9,024 40,846 28,829
Costs and expenses        
Cost of revenues [1] $ 10,771 $ 5,380 $ 27,074 $ 17,078
[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)
v3.22.2.2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Current assets    
Cash and cash equivalents $ 258,627 $ 302,009
Settlement receivables 76,854 89,275
Trade and other receivables, net of allowances for credit losses of $5,977 and $5,161 at September 30, 2022 and December 31, 2021, respectively 116,843 104,822
Inventory 55,890 29,233
Prepaid expenses and other current assets 39,009 27,299
Total current assets 547,223 552,638
Non-current assets    
Property and equipment, net 130,545 119,993
Goodwill 707,214 682,663
Other intangible assets, net 230,928 214,594
Other receivables 24,777 13,982
Deferred tax assets, net 179 32,121
Other assets 28,657 19,659
Total non-current assets 1,122,300 1,083,012
Total assets 1,669,523 1,635,650
Current liabilities    
Settlement liabilities 232,147 291,861
Accounts payable and accrued expenses 209,766 173,933
Current portion of long-term debt 6,000 6,000
Total current liabilities 447,913 471,794
Deferred Income Tax Liabilities, Net 345 0
Non-current liabilities    
Long-term debt, less current portion 972,877 975,525
Other accrued expenses and liabilities 29,669 13,831
Total non-current liabilities 1,002,891 989,356
Total liabilities 1,450,804 1,461,150
Commitments and contingencies (Note 13)
Stockholders’ equity    
Convertible preferred stock, $0.001 par value, 50,000 shares authorized and no shares outstanding at September 30, 2022 and December 31, 2021, respectively 0 0
Common stock, $0.001 par value, 500,000 shares authorized and 119,258 and 89,972 shares issued and outstanding at September 30, 2022, respectively, and 116,996 and 91,313 shares issued and outstanding at December 31, 2021, respectively 119 117
Additional paid-in capital 522,353 505,757
Accumulated deficit (48,303) (141,755)
Accumulated other comprehensive loss (6,120) (1,455)
Treasury stock, at cost, 29,286 and 25,683 shares at September 30, 2022 and December 31, 2021, respectively (249,330) (188,164)
Total stockholders’ equity 218,719 174,500
Total liabilities and stockholders’ equity $ 1,669,523 $ 1,635,650
v3.22.2.2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Current assets    
Allowances for doubtful accounts $ 5,977 $ 5,161
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) 119,258,000 116,996,000
Common stock outstanding (in shares) 89,972,000 91,313,000
Treasury stock (in shares) 29,286,000 25,683,000
v3.22.2.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Cash flows from operating activities    
Net income $ 93,452 $ 63,494
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation 48,342 46,571
Amortization 43,582 43,680
Non-cash lease expense 3,599 3,400
Amortization of financing costs and discounts 2,140 3,234
Loss on sale or disposal of assets 420 1,616
Accretion of contract rights 7,367 6,966
Provision for credit losses 7,286 5,499
Deferred income taxes 28,042 (174)
Reserve for inventory obsolescence 659 1,610
Loss on extinguishment of debt 0 34,389
Stock-based compensation 15,012 12,404
Changes in operating assets and liabilities:    
Settlement receivables 12,251 10,056
Trade and other receivables (23,845) (25,522)
Inventory (23,026) (5,569)
Prepaid expenses and other assets (26,388) (8,068)
Settlement liabilities (59,432) 4,371
Accounts payable and accrued expenses 17,453 45,543
Net cash provided by operating activities 146,914 243,500
Cash flows from investing activities    
Capital expenditures (92,225) (73,288)
Acquisitions, net of cash acquired (33,250) (15,000)
Proceeds from sale of property and equipment 115 215
Placement fee agreements (547) 0
Net cash used in investing activities (125,907) (88,073)
Cash flows from financing activities    
Proceeds from new term loan 0 600,000
Proceeds from 2021 unsecured notes 0 400,000
Repayments of 2017 unsecured notes 0 (285,381)
Proceeds from exercise of stock options 1,586 14,012
Treasury stock - restricted share vestings and withholdings (11,815) (8,909)
Treasury stock - repurchase of shares (49,351) 0
Payment of contingent consideration, acquisition 0 (9,875)
Net cash used in financing activities (64,080) (190,653)
Effect of exchange rates on cash and cash equivalents (1,106) (237)
Cash, cash equivalents and restricted cash    
Net decrease for the period (44,179) (35,463)
Balance, beginning of the period 303,726 252,349
Balance, end of the period 259,547 216,886
Supplemental cash disclosures    
Cash paid for interest 42,070 45,167
Cash paid for income tax, net 846 975
Supplemental non-cash disclosures    
Accrued and unpaid capital expenditures 5,511 32,999
Transfer of leased gaming equipment to inventory 7,758 5,636
New Term Loan    
Cash flows from financing activities    
Repayments of secured debt (4,500) 0
Prior Term Loan    
Cash flows from financing activities    
Repayments of secured debt 0 (735,500)
Incremental Term Loan    
Cash flows from financing activities    
Repayments of secured debt 0 (124,375)
New Debt    
Cash flows from financing activities    
Fees associated with debt transactions 0 (19,797)
Prior Debt    
Cash flows from financing activities    
Fees associated with debt transactions $ 0 $ (20,828)
v3.22.2.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Deficit
Accumulated Other Comprehensive Loss
Treasury Stock
Balance, beginning of period (in shares) at Dec. 31, 2020   111,872        
Balance, beginning of period at Dec. 31, 2020 $ (7,898) $ 112 $ 466,614 $ (294,620) $ (1,191) $ (178,813)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 20,534     20,534    
Foreign currency translation (221)       (221)  
Stock-based compensation expense 3,005   3,005      
Exercise of warrants (in shares)   378        
Exercise of options (in shares)   561        
Exercise of options 2,285 $ 1 2,284      
Restricted share vesting and withholding (in shares)   41        
Restricted share vestings and withholdings (173)   (1)     (172)
Balance, end of period (in shares) at Mar. 31, 2021   112,852        
Balance, end of period at Mar. 31, 2021 17,532 $ 113 471,902 (274,086) (1,412) (178,985)
Balance, beginning of period (in shares) at Dec. 31, 2020   111,872        
Balance, beginning of period at Dec. 31, 2020 (7,898) $ 112 466,614 (294,620) (1,191) (178,813)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 63,494          
Balance, end of period (in shares) at Sep. 30, 2021   116,357        
Balance, end of period at Sep. 30, 2021 72,768 $ 116 493,022 (231,126) (1,526) (187,718)
Balance, beginning of period (in shares) at Mar. 31, 2021   112,852        
Balance, beginning of period at Mar. 31, 2021 17,532 $ 113 471,902 (274,086) (1,412) (178,985)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 36,214     36,214    
Foreign currency translation 328       328  
Stock-based compensation expense 5,447   5,447      
Exercise of options (in shares)   1,358        
Exercise of options 6,418 $ 2 6,416      
Restricted share vesting and withholding (in shares)   1,349        
Restricted share vestings and withholdings (8,439) $ 1 (3)     (8,437)
Balance, end of period (in shares) at Jun. 30, 2021   115,559        
Balance, end of period at Jun. 30, 2021 57,500 $ 116 483,762 (237,872) (1,084) (187,422)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 6,746     6,746    
Foreign currency translation (442)       (442)  
Stock-based compensation expense 3,952   3,952      
Exercise of options (in shares)   762        
Exercise of options 5,309 $ 0 5,309      
Restricted share vesting and withholding (in shares)   36        
Restricted share vestings and withholdings (297) $ 0 (1)     (296)
Balance, end of period (in shares) at Sep. 30, 2021   116,357        
Balance, end of period at Sep. 30, 2021 $ 72,768 $ 116 493,022 (231,126) (1,526) (187,718)
Balance, beginning of period (in shares) at Dec. 31, 2021 91,313 116,996        
Balance, beginning of period at Dec. 31, 2021 $ 174,500 $ 117 505,757 (141,755) (1,455) (188,164)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 31,522     31,522    
Foreign currency translation 580       580  
Stock-based compensation expense 4,811   4,811      
Exercise of options (in shares)   164        
Exercise of options 699   699      
Restricted share vesting and withholding (in shares)   61        
Restricted share vestings and withholdings (400)         (400)
Balance, end of period (in shares) at Mar. 31, 2022   117,221        
Balance, end of period at Mar. 31, 2022 $ 211,712 $ 117 511,267 (110,233) (875) (188,564)
Balance, beginning of period (in shares) at Dec. 31, 2021 91,313 116,996        
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) 93,452          
Repurchase of shares $ (49,400)          
Balance, end of period (in shares) at Sep. 30, 2022 89,972 119,258        
Balance, end of period at Sep. 30, 2022 $ 218,719 $ 119 522,353 (48,303) (6,120) (249,330)
Balance, beginning of period (in shares) at Mar. 31, 2022   117,221        
Balance, beginning of period at Mar. 31, 2022 211,712 $ 117 511,267 (110,233) (875) (188,564)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 32,521     32,521    
Foreign currency translation (2,606)       (2,606)  
Stock-based compensation expense 5,500   5,500      
Exercise of options (in shares)   5        
Exercise of options 20   20      
Restricted share vesting and withholding (in shares)   1,883        
Restricted share vestings and withholdings (11,182) $ 2 (2)     (11,182)
Repurchase of shares (33,336)         (33,336)
Balance, end of period (in shares) at Jun. 30, 2022   119,109        
Balance, end of period at Jun. 30, 2022 202,629 $ 119 516,785 (77,712) (3,481) (233,082)
Increase (Decrease) in Stockholders' Equity            
Net income (loss) 29,409     29,409    
Foreign currency translation (2,639)       (2,639)  
Stock-based compensation expense 4,701   4,701      
Exercise of options (in shares)   115        
Exercise of options 867   867      
Restricted share vesting and withholding (in shares)   34        
Restricted share vestings and withholdings (233) $ 0 0     (233)
Repurchase of shares $ (16,015)         (16,015)
Balance, end of period (in shares) at Sep. 30, 2022 89,972 119,258        
Balance, end of period at Sep. 30, 2022 $ 218,719 $ 119 $ 522,353 $ (48,303) $ (6,120) $ (249,330)
v3.22.2.2
BUSINESS
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BUSINESS BUSINESS
Everi Holdings Inc. (“Everi Holdings,” or “Everi”) is a holding company, the assets of which are the issued and outstanding shares of capital stock of each of Everi Payments Inc. (“Everi FinTech” or “FinTech”) and Everi Games Holding Inc., which owns all of the issued and outstanding shares of capital stock of Everi Games Inc. (“Everi Games” or “Games”). Unless otherwise indicated, the terms the “Company,” “we,” “us,” and “our” refer to Everi Holdings together with its consolidated subsidiaries.
Everi is a supplier of entertainment and technology solutions for the casino and digital gaming industry. The Company develops game content and gaming machines, gaming systems and services for land-based and iGaming operators. The Company is also a provider of financial technology solutions that power the casino floor, including products and services that facilitate cash and cashless financial transactions, self-service player loyalty tools and applications, and regulatory and intelligence software.
Everi reports its financial performance, and organizes and manages its operations, across the following two business segments: (i) Games and (ii) 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 and Class III slot machines and Historic Horse Racing (“HHR”) gaming 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. Our services operate as part of an end-to-end security suite to protect against cyber-related attacks and maintain the necessary secured environments to maintain compliance with applicable regulatory requirements. These solutions include: access to cash and cashless funding at gaming facilities via Automated Teller Machine (“ATM”) debit withdrawals, credit card financial access transactions, and point of sale (“POS”) debit card purchases at casino cages, kiosk and mobile POS devices; 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 the Coronavirus Disease 2019 (“COVID-19”) Pandemic
The COVID-19 pandemic negatively impacted the global economy, disrupted global supply chains, and created significant volatility in the financial markets. Initially, it lowered equity market valuations and raised the cost of borrowing funds, increased unemployment levels, and caused temporary, and in certain cases, permanent closures of many businesses. The gaming industry was not immune to these factors as our casino customers closed their gaming establishments in the first quarter of 2020. As the initial impacts from the COVID-19 pandemic subsided, most of our casino customers began to reopen their operations over the remainder of 2020 and throughout 2021. While some of our customers’ locations have permanently ceased operations, nearly all of our customer base has resumed operations as of September 30, 2022. In addition, the impacts of employment constraints and supply chain disruptions continue to challenge our customers and us.
Since the onset of COVID-19, we have implemented measures to mitigate our exposure throughout the global pandemic. While many pandemic impacts have subsided, further uncertainty still challenges our customers and us as a result of COVID-19 and the resurgence of its variants. We continue to evaluate our business strategies and monitor the impacts of the global pandemic, employment constraints and supply chain disruptions on our results of operations and financial condition, and make adjustments to our business, accordingly.
Our revenues for the third quarter of 2022 exceeded the third quarter of 2021. While gaming industry conditions have improved significantly compared to the start of the pandemic, it is unclear if customers’ industry capital allocations will fully return to and remain at pre-COVID levels. With macro-economic volatility and pandemic-related challenges still in effect, we expect that demand and supply for our products and services could be tempered in the short-term, to the extent gaming activity decreases at our customers’ locations, or fails to increase at expected rates, and to the extent our customers decide to restrict their capital spending as a result of uncertainty in the industry, or that supply chain disruptions might impact customer deliveries, or otherwise.
The impact of the COVID-19 pandemic also exacerbates the risks disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”), including, but not limited to: our ability to generate revenues and, earn profits, our ability to service existing and attract new customers and maintain our overall competitiveness in the market; the potential for significant fluctuations in demand for our products and services; overall trends in the gaming industry impacting our business, and potential volatility in our stock price, among other concerns.
v3.22.2.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
Our unaudited condensed consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Some of the information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. The results for the three and nine months ended September 30, 2022 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.
We evaluate the composition of our revenues to maintain compliance with SEC Regulation S-X Section 210.5-3, which requires us to separately present certain categories of revenues that exceed the quantitative threshold on our Statements of Operations.
Revenue Recognition
Overview
We evaluate the recognition of revenue based on the criteria set forth in Accounting Standards Codification (“ASC”) 606 — Revenue from Contracts with Customers and ASC 842 — Leases, as appropriate. We recognize revenue upon transferring control of goods or services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We enter into contracts with customers that include various performance obligations consisting of goods, services, or combinations of goods and services. Timing of the transfer of control varies based on the nature of the contract. We recognize revenue net of any sales and other taxes collected from customers, which are subsequently remitted to governmental authorities and are not included in revenues or operating expenses. We measure revenue based on the consideration specified in a contract with a customer and adjusted, as necessary.
Disaggregation of Revenues
We disaggregate revenues based on the nature and timing of the cash flows generated by such revenues as presented in “Note 18 — Segment Information.”
Contract Balances
Since our contracts may include multiple performance obligations, there is often a timing difference between cash collections and the satisfaction of such performance obligations and revenue recognition. Such arrangements are evaluated to determine whether contract assets and liabilities exist. We generally record contract assets when the timing of billing differs from when revenue is recognized due to contracts containing specific performance obligations that are required to be met prior to a customer being invoiced. We generally record contract liabilities when cash is collected in advance of us satisfying performance obligations, including those that are satisfied over a period of time. Balances of our contract assets and contract liabilities may fluctuate due to timing of invoicing and cash collections.
The following table summarizes our contract assets and contract liabilities arising from contracts with customers (in thousands):
20222021
Contract assets(1)
Balance at January 1 - current$9,927 $9,240 
Balance at January 1 - non-current5,294 8,321 
Total
15,221 17,561 
Balance at September 30 - current12,223 9,728 
Balance at September 30 - non-current10,589 5,647 
Total
22,812 15,375 
         Increase (decrease)$7,591 $(2,186)
Contract liabilities(2)
Balance at January 1 - current$36,238 $26,980 
Balance at January 1 - non-current377 289 
Total
36,615 27,269 
Balance at September 30 - current44,460 36,503 
Balance at September 30 - non-current2,246 493 
Total
46,706 36,996 
         Increase $10,091 $9,727 
(1)  The current portion of contract assets is included within trade and other receivables, net, and the non-current portion is included within other receivables in our Balance Sheets.
(2)  The current portion of contract liabilities is included within accounts payable and accrued expenses, and the non-current portion is included within other accrued expenses and liabilities in our Balance Sheets.
We recognized approximately $25.1 million and $21.0 million in revenue that was included in the beginning contract liabilities balance during the nine months ended September 30, 2022 and 2021, 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, 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; (ii) Gaming Equipment and Systems; and (iii) Gaming Other.
We recognize our Gaming Operations revenue based on criteria set forth in ASC 842 or ASC 606, as applicable. The amount of lease revenue included in our Gaming Operations revenues and recognized under ASC 842 was approximately $51.4 million and $148.0 million for the three and nine months ended September 30, 2022, respectively, and $49.2 million and $141.6 million for the three and nine months ended September 30, 2021, 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. In addition, our services operate as part of an end-to-end security suite to protect against cyber-related attacks and maintain the necessary secured environments to maintain compliance with applicable regulatory requirements. These solutions include: access to cash and cashless funding at gaming facilities via ATM debit withdrawals, credit card financial access transactions, and POS debit card purchases at casino cages, kiosk and mobile POS devices; accounts for the CashClub Wallet, check warranty services, self-service loyalty and fully integrated kiosk maintenance services; self-service loyalty tools and promotion management software; compliance, audit, and data software; casino credit data and reporting services; marketing and promotional offering subscription-based services; and other ancillary offerings. We conduct our FinTech segment business based on results generated from the following major revenue streams: (i) Financial Access Services; (ii) Software and Other; and (iii) Hardware.
Hardware revenues are derived from the sale of our financial access and loyalty kiosks and related equipment and are accounted for under ASC 606, unless such transactions meet the definition of a sales type or direct financing lease, which are accounted for under ASC 842. We did not have any material financial access kiosk and related equipment sales contracts accounted for under ASC 842 during the three and nine months ended September 30, 2022 and 2021.
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; (iii) wide area progressive (“WAP”)-related restricted funds; and (iv) financial access activities related to cashless balances held on behalf of patrons. 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 nine months ended September 30, 2022 (in thousands).
Classification on our Balance Sheets
At September 30, 2022
At December 31, 2021
Cash and cash equivalentsCash and cash equivalents$258,627 $302,009 
Restricted cash - currentPrepaid expenses and other current assets819 1,616 
Restricted cash - non-currentOther assets101 101 
Total
$259,547 $303,726 
Allowance for Credit Losses
We continually evaluate the collectability of outstanding balances and maintain an allowance for credit losses related to our trade and other receivables and notes receivable that have been determined to have a high risk of uncollectability, which represents our best estimates of the current expected credit losses to be incurred in the future. To derive our estimates, we analyze historical collection trends and changes in our customer payment patterns, current and expected conditions and market trends along with our operating forecasts, concentration, and creditworthiness when evaluating the adequacy of our allowance for credit losses. In addition, with respect to our check warranty receivables, we are exposed to risk for the losses associated with warranted items that cannot be collected from patrons issuing these items. We evaluate the collectability of the outstanding balances and establish a reserve for the face amount of the current expected credit losses related to these receivables. Account balances are charged against the provision when the Company believes it is probable the receivable will not be recovered. The provision for doubtful accounts receivable is included within operating expenses and the check warranty loss reserves are included within financial access services cost of revenues in the Statements of Operations.

Goodwill
Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. We test for impairment annually on a reporting unit basis, at the beginning of our fourth fiscal quarter and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The annual impairment test is completed using either: a qualitative “Step 0” assessment based on reviewing relevant events and circumstances; or a quantitative “Step 1” assessment, which determines the fair value of the reporting unit, using both an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether an impairment exists. To the extent the carrying amount of a reporting unit is less than its estimated fair value, an impairment charge is recorded.
The evaluation of impairment of goodwill requires the use of estimates about future operating results. Changes in forecasted operations can materially affect these estimates, which could materially affect our results of operations and financial condition. The estimates of expected future cash flows require significant judgment and are based on assumptions we determined to be reasonable; however, they are unpredictable and inherently uncertain, including, estimates of future growth rates, operating margins and assumptions about the overall economic climate as well as the competitive environment within which we operate. There can be no assurance that our estimates and assumptions made for purposes of our impairment assessments as of the time of evaluation will prove to be accurate predictions of the future. If our assumptions regarding business plans, competitive environments, or anticipated growth rates are not correct, we may be required to record non-cash impairment charges in future periods, whether in connection with our normal review procedures periodically, or earlier, if an indicator of an impairment is present prior to such evaluation.
Our reporting units are identified as operating segments or one level below. Reporting units must: (i) engage in business activities from which they earn revenues and incur expenses; (ii) have operating results that are regularly reviewed by our segment management to ascertain the resources to be allocated to the segment and assess its performance; and (iii) have discrete financial information available. As of September 30, 2022, our reporting units included: (i) Games; (ii) Financial Access Services; (iii) Kiosk Sales and Services; (iv) Central Credit Services; (v) Compliance Sales and Services; and (vi) Loyalty Sales and Services.
Fair Values of Financial Instruments
The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument.
The carrying amount of cash and cash equivalents, restricted cash, settlement receivables, short-term trade and other receivables, settlement liabilities, accounts payable, and accrued expenses approximate fair value due to the short-term maturities of these instruments. The fair value of the long-term trade and loans receivable is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. The fair value of long-term accounts payable is estimated by discounting the total obligation using the appropriate interest rates. As of September 30, 2022 and December 31, 2021, 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
September 30, 2022   
$600 million New Term Loan
2$572,972 $594,000 
$400 million 2021 Unsecured Notes
2$329,984 $400,000 
December 31, 2021   
$600 million New Term Loan
2$598,171 $598,500 
$400 million 2021 Unsecured Notes
2$404,000 $400,000 
Our borrowings’ fair values were determined using Level 2 inputs based on quoted market prices for these securities.
Reclassification of Prior Year 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
Recently Adopted Accounting Guidance
StandardDescriptionDate of AdoptionEffect on Financial Statements
ASU 2021-05, 'Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments
This ASU amends the lease classification requirements for lessors to align them with practice under ASC Topic 840January 1, 2022The adoption of this ASU did not have a material effect on our Financial Statements or on our disclosures.
Recent Accounting Guidance Not Yet Adopted
As of September 30, 2022, we do not anticipate recently issued accounting guidance to have a significant future impact on our consolidated financial statements.
v3.22.2.2
LEASES
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
LEASES LEASES
We determine if a contract is, or contains, a lease at the inception, or modification, of a contract based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of an asset is predicated upon the notion that a lessee has both the right to (i) obtain substantially all of the economic benefit from the use of the asset; and (ii) direct the use of the asset.
Operating lease right-of-use (“ROU”) assets and liabilities are recognized based on the present value of minimum lease payments over the expected lease term at commencement date. Lease expense is recognized on a straight-line basis over the expected lease term. Our lease arrangements have both lease and non-lease components, and we have elected the practical expedient to account for the lease and non-lease elements as a single lease.
Certain of our lease arrangements contain options to renew with terms that generally have the ability to extend the lease term to a range of approximately one to ten years. The exercise of lease renewal options is generally at our sole discretion. The expected lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such option. The depreciable life of leased assets and leasehold improvements is limited by the expected term of such assets, unless there is a transfer of title or purchase option reasonably certain to be exercised.
Lessee
We enter into operating lease agreements for real estate purposes that generally consist of buildings for office space and warehouses for manufacturing purposes. Certain of our lease agreements consist of rental payments that are periodically adjusted for inflation. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. Our lease agreements do not generally provide explicit rates of interest; therefore, we use our incremental collateralized borrowing rate, which is based on a fully collateralized and fully amortizing loan with a maturity date the same as the length of the lease that is based on the information available at the commencement date to determine the present value of lease payments. Leases with an initial term of 12 months or less (short-term) are not accounted for on our Balance Sheets. As of September 30, 2022 and December 31, 2021, our finance leases were not material.
Supplemental balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance Sheets
At September 30, 2022
At December 31, 2021
Assets
Operating lease ROU assetsOther assets, non-current$18,426 $12,692 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$6,436 $5,663 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$16,281 $11,869 
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Cash paid for:
Long-term operating leases$1,855 $1,660 $5,165 $5,030 
Short-term operating leases$398 $400 $1,205 $1,219 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases(1)
$997 $396 $7,448 $1,063 
(1) The amounts are presented net of current year terminations and exclude amortization for the period.
Other information related to lease terms and discount rates is as follows:
At September 30, 2022At December 31, 2021
Weighted Average Remaining Lease Term (in years):
Operating leases3.573.52
Weighted Average Discount Rate:
Operating leases4.71 %5.04 %
Components of lease expense, which are included in operating expenses, are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Operating Lease Cost:
Operating lease cost
$1,663 $1,276 $4,492 $4,192 
Variable lease cost $259 $311 $902 $946 
Maturities of lease liabilities are summarized as follows as of September 30, 2022 (in thousands):
Year Ending December 31, Amount
2022 (excluding the nine months ended September 30, 2022)
$1,750 
2023
7,293 
2024
6,747 
2025
5,834 
2026
2,137 
Thereafter967 
Total future minimum lease payments 24,728 
Less: Amount representing interest 2,011 
Present value of future minimum lease payments22,717 
Less: Current operating lease obligations6,436 
Long-term lease obligations$16,281 
Lessor
We generate lease revenues primarily from our gaming operations activities, and the majority of our leases are month-to-month leases. Under these arrangements, we retain ownership of the electronic gaming machines (“EGMs”) installed at customer facilities. We receive recurring revenues based on a percentage of the net win per day generated by the leased gaming equipment or a fixed daily fee. Such revenues are generated daily and are limited to the lesser of the net win per day generated by the leased gaming equipment or the fixed daily fee and the lease payments that have been collected from the lessee. Certain of our leases have terms and conditions with options for a lessee to purchase the underlying assets. Refer to "Note 9 - Property and Equipment" for details of our rental pool assets cost and accumulated depreciation.
We did not have material sales transactions that qualified for sales-type lease accounting treatment during the three and nine months ended September 30, 2022 and 2021. Our interest income recognized in connection with sales-type leases executed in the prior periods was not material.
Supplemental balance sheet information related to our sales-type leases is as follows (in thousands):
Classification on our Balance SheetsAt September 30, 2022At December 31, 2021
Assets
Net investment in sales-type leases - currentTrade and other receivables, net$366 $1,331 
LEASES LEASES
We determine if a contract is, or contains, a lease at the inception, or modification, of a contract based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of an asset is predicated upon the notion that a lessee has both the right to (i) obtain substantially all of the economic benefit from the use of the asset; and (ii) direct the use of the asset.
Operating lease right-of-use (“ROU”) assets and liabilities are recognized based on the present value of minimum lease payments over the expected lease term at commencement date. Lease expense is recognized on a straight-line basis over the expected lease term. Our lease arrangements have both lease and non-lease components, and we have elected the practical expedient to account for the lease and non-lease elements as a single lease.
Certain of our lease arrangements contain options to renew with terms that generally have the ability to extend the lease term to a range of approximately one to ten years. The exercise of lease renewal options is generally at our sole discretion. The expected lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such option. The depreciable life of leased assets and leasehold improvements is limited by the expected term of such assets, unless there is a transfer of title or purchase option reasonably certain to be exercised.
Lessee
We enter into operating lease agreements for real estate purposes that generally consist of buildings for office space and warehouses for manufacturing purposes. Certain of our lease agreements consist of rental payments that are periodically adjusted for inflation. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. Our lease agreements do not generally provide explicit rates of interest; therefore, we use our incremental collateralized borrowing rate, which is based on a fully collateralized and fully amortizing loan with a maturity date the same as the length of the lease that is based on the information available at the commencement date to determine the present value of lease payments. Leases with an initial term of 12 months or less (short-term) are not accounted for on our Balance Sheets. As of September 30, 2022 and December 31, 2021, our finance leases were not material.
Supplemental balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance Sheets
At September 30, 2022
At December 31, 2021
Assets
Operating lease ROU assetsOther assets, non-current$18,426 $12,692 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$6,436 $5,663 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$16,281 $11,869 
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Cash paid for:
Long-term operating leases$1,855 $1,660 $5,165 $5,030 
Short-term operating leases$398 $400 $1,205 $1,219 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases(1)
$997 $396 $7,448 $1,063 
(1) The amounts are presented net of current year terminations and exclude amortization for the period.
Other information related to lease terms and discount rates is as follows:
At September 30, 2022At December 31, 2021
Weighted Average Remaining Lease Term (in years):
Operating leases3.573.52
Weighted Average Discount Rate:
Operating leases4.71 %5.04 %
Components of lease expense, which are included in operating expenses, are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Operating Lease Cost:
Operating lease cost
$1,663 $1,276 $4,492 $4,192 
Variable lease cost $259 $311 $902 $946 
Maturities of lease liabilities are summarized as follows as of September 30, 2022 (in thousands):
Year Ending December 31, Amount
2022 (excluding the nine months ended September 30, 2022)
$1,750 
2023
7,293 
2024
6,747 
2025
5,834 
2026
2,137 
Thereafter967 
Total future minimum lease payments 24,728 
Less: Amount representing interest 2,011 
Present value of future minimum lease payments22,717 
Less: Current operating lease obligations6,436 
Long-term lease obligations$16,281 
Lessor
We generate lease revenues primarily from our gaming operations activities, and the majority of our leases are month-to-month leases. Under these arrangements, we retain ownership of the electronic gaming machines (“EGMs”) installed at customer facilities. We receive recurring revenues based on a percentage of the net win per day generated by the leased gaming equipment or a fixed daily fee. Such revenues are generated daily and are limited to the lesser of the net win per day generated by the leased gaming equipment or the fixed daily fee and the lease payments that have been collected from the lessee. Certain of our leases have terms and conditions with options for a lessee to purchase the underlying assets. Refer to "Note 9 - Property and Equipment" for details of our rental pool assets cost and accumulated depreciation.
We did not have material sales transactions that qualified for sales-type lease accounting treatment during the three and nine months ended September 30, 2022 and 2021. Our interest income recognized in connection with sales-type leases executed in the prior periods was not material.
Supplemental balance sheet information related to our sales-type leases is as follows (in thousands):
Classification on our Balance SheetsAt September 30, 2022At December 31, 2021
Assets
Net investment in sales-type leases - currentTrade and other receivables, net$366 $1,331 
v3.22.2.2
BUSINESS COMBINATIONS
 9 Months Ended
Sep. 30, 2022
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 as of the acquisition date.

ecash Holdings Pty Limited
On March 1, 2022 (the “Closing Date”), the Company acquired the stock of ecash Holdings Pty Limited and wholly-owned subsidiaries Global Payment Technologies Australia Pty Limited, and ACN 121 187 068 Pty Limited (collectively “ecash”), a privately owned, Australia-based developer and provider of innovative cash handling and financial payment solutions for the broader gaming industry in Australia, Asia, Europe, and the United States. The acquisition of ecash’s products and services represents a strategic extension of Everi’s current suite of financial technology solutions within the FinTech segment. The acquisition provides Everi with a complementary portfolio of new customer locations throughout Australia, the United States, and other geographies.
Under the terms of the stock purchase agreement, we paid the seller AUD$20 million (approximately USD$15 million) on the Closing Date of the transaction and we will pay an additional AUD$6.5 million one year following the Closing Date and another AUD$6.5 million two years following the 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.
Pursuant to the arrangement, there is an earn-out provision of up to AUD$10 million, to the extent certain growth targets are achieved. The payment, if any, is subject to certain employment restrictions and will be accounted for as compensation expense in accordance with GAAP.
The acquisition did not have a significant impact on our results of operations or financial condition for the three and nine months ended September 30, 2022.
The total preliminary purchase consideration for ecash was as follows (in thousands, at fair value):
Amount in USD
Purchase consideration
Cash consideration paid at closing$14,980 
Cash consideration post-closing15,905 
Total purchase consideration$30,885 
Cash 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 of our Balance Sheets.
The transaction was accounted for using the acquisition method of accounting, which requires, among other things, the assets acquired and liabilities assumed be recognized at their respective fair values as of the acquisition date. The excess of the purchase price over those fair values was recorded as goodwill, which will be amortized over a period of 15 years for tax purposes. The goodwill recognized is primarily attributable to the income potential from the expansion of our footprint in the gaming space by enhancing our financial technology solution portfolio to add new markets and business lines and an assembled workforce, among other strategic benefits.
The estimates and assumptions used include the projected timing and amount of future cash flows and discount rates reflecting risk inherent in the future cash flows. The estimated fair values of assets acquired and liabilities assumed and resulting goodwill are subject to adjustment as the Company finalizes its purchase price accounting. The significant items for which a final fair value has not been determined include, but are not limited to: the valuation and estimated useful lives of intangible assets, 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 Closing Date and the final fair value analysis, which we expect to complete no later than the first quarter of 2023.
The information below reflects the preliminary amounts of identifiable assets acquired and liabilities assumed (in thousands):
Amount in USD*
Current assets$12,850 
Property and equipment1,218 
    Other intangible assets
11,600 
Goodwill11,861 
    Other assets726 
Total Assets38,255 
Accounts payable and accrued expenses7,160 
Other accrued expenses and liabilities210 
Total liabilities7,370 
Net assets acquired$30,885 
_______________________
*Reflects a measurement period adjustment of approximately $1.2 million from the initial allocation as of the closing date of the transaction.
Current assets acquired included approximately $2.8 million in cash. Trade receivables acquired of approximately $5.7 million were short-term in nature and considered to be collectible, and therefore, the carrying amounts of these assets represented their fair values. Inventory acquired of approximately $4.2 million consisted of raw materials and finished goods and was recorded at fair value based on the estimated net realizable value of these assets. Property, equipment, and leased assets acquired were not material in size or scope, and the carrying amounts of these assets approximated their fair values.
The following table summarizes preliminary values of acquired intangible assets (dollars in thousands):
Useful Life (Years)Estimated Fair Value (USD)
Other Intangible Assets
Trade name
3
$700 
Developed technology
3
3,600 
Customer relationships
9
7,300 
Total other intangible assets$11,600 
The fair value of intangible assets was determined by applying the income approach. Other intangible assets acquired of approximately $11.6 million were comprised of customer relationships, developed technology and trade name. The fair value of customer relationships of approximately $7.3 million was determined by applying the income approach utilizing the excess earnings methodology using Level 3 inputs in the fair value hierarchy including a discount rate of 17%. The fair value of developed technology of approximately $3.6 million was determined by applying the income approach utilizing the relief from royalty methodology using Level 3 inputs with a royalty rate of 7.5% and a discount rate of 17%. The fair value of trade name of approximately $0.7 million was determined by applying the income approach utilizing the relief from royalty methodology using Level 3 inputs with a royalty rate of 2% and a discount rate of 17%.
The financial results included in our Statements of Operations since the acquisition date and through September 30, 2022 reflected revenues of approximately $9.4 million and an immaterial net loss. We incurred acquisition-related costs of approximately $0.2 million for the nine months ended September 30, 2022.
Intuicode Gaming Corporation
On April 30, 2022 (the “Closing Date”), the Company acquired the stock of Intuicode Gaming Corporation (“Intuicode”), a privately owned game development and engineering firm focused on HHR games. The acquisition of Intuicode provides Everi with additional HHR expertise that will help the Company accelerate its growth in the expanding HHR market that will benefit the Games segment.
Under the terms of the stock purchase agreement, we paid the seller $12.5 million on the 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 Closing Date. We expect the total consideration for this acquisition, inclusive of contingent consideration, to be approximately $27.1 million.

The acquisition did not have a significant impact on our results of operations or financial condition for the three and nine months ended September 30, 2022.
The total preliminary purchase consideration for Intuicode was as follows (in thousands, at fair value):
Amount in USD
Purchase consideration
Cash consideration paid at closing$12,500 
Cash consideration post-closing1,595 
Total cash consideration 14,095 
Contingent consideration (at fair value)12,150 
Total purchase consideration$26,245 
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%. Based on our quarterly review, there were no material adjustments required to our estimates and assumptions with respect to the contingent consideration. 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 of our Balance Sheets.
The transaction was accounted for using the acquisition method of accounting, which requires, among other things, the assets acquired and liabilities assumed be recognized at their respective fair values as of the acquisition date. The excess of the purchase price over those fair values was recorded as goodwill, which will be amortized over a period of 15 years for tax purposes. The goodwill recognized is primarily attributable to the income potential from the expansion of our footprint in the gaming space by accelerating our entry into and growth in the expanding HHR market and business line, assembled workforce, among other strategic benefits.
The estimates and assumptions used include the projected timing and amount of future cash flows and discount rates reflecting risk inherent in the future cash flows. The estimated fair values of assets acquired and liabilities assumed and resulting goodwill are subject to adjustment as the Company finalizes its purchase price accounting. The significant items for which a final fair value has not been determined include, but are not limited to: the valuation and estimated useful lives of intangible assets, 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 Closing Date and the final fair value analysis, which we expect to complete no later than the second quarter of 2023.
The information below reflects the preliminary amounts of identifiable assets acquired and liabilities assumed as of the closing date of the transaction (in thousands):
Amount in USD
Current assets$3,944 
    Other intangible assets
18,757 
Goodwill10,422 
Total Assets33,123 
Accounts payable and accrued expenses2,407 
    Deferred tax liabilities 4,471 
Total liabilities6,878 
Net assets acquired$26,245 
Current assets acquired included approximately $2.1 million in cash. Trade receivables acquired of approximately $0.6 million were short-term in nature and considered to be collectible, and therefore, the carrying amounts of these assets represented their fair values. Inventory acquired of approximately $0.4 million consisted of raw materials and finished goods and was recorded at fair value based on the estimated net realizable value of these assets. Leased assets acquired were not material in size or scope, and the carrying amounts of these assets approximated their fair values.
The following table summarizes preliminary values of acquired intangible assets (dollars in thousands):
Useful Life (Years)Estimated Fair Value (USD)
Other Intangible Assets
Trade name
10
$400 
Developed technology
2
3,357 
Customer relationships
9
15,000 
Total other intangible assets$18,757 
The fair value of intangible assets was determined by applying the income approach. Other intangible assets acquired of approximately $18.8 million were comprised of customer relationships, developed technology and trade name. The fair value of customer relationships of approximately $15.0 million was determined by applying the income approach utilizing the excess earnings methodology using Level 3 inputs in the hierarchy with a discount rate of 40%. The fair value of developed technology of approximately $3.4 million was determined by applying the income approach utilizing the relief from royalty methodology using Level 3 inputs with a royalty rate of 25% and a discount rate of 35%. The fair value of trade name of approximately $0.4 million was determined by applying the income approach utilizing the relief from royalty methodology using Level 3 inputs with a royalty rate of 1% and a discount rate of 40%.
The financial results included in our Statements of Operations since the acquisition date and through September 30, 2022 reflected revenues of approximately $3.6 million and net income of approximately $0.7 million. We incurred acquisition-related costs of approximately $0.1 million for the nine months ended September 30, 2022.
Pro-forma financial information (unaudited)
The unaudited pro forma financial data includes the historical operating results of the Company and the two acquired businesses prior to the acquisitions as if the transactions occurred on January 1, 2021. 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 and Intuicode acquisitions occurred on January 1, 2021 included revenue of approximately $204.3 million and $587.2 million and net income of approximately $29.4 million and $93.2 million, respectively, for the three and nine months ended September 30, 2022, and revenue of approximately $174.9 million and $504.1 million and net income of approximately $6.9 million and $65.0 million, respectively, for the three and nine months ended September 30, 2021.
v3.22.2.2
FUNDING AGREEMENTS
 9 Months Ended
Sep. 30, 2022
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 $2.7 million and $5.5 million for the three and nine months ended September 30, 2022, respectively, and $1.2 million and $2.9 million for the three and nine months ended September 30, 2021, respectively. We are exposed to interest rate risk to the extent the applicable rates increase.
Under these agreements, the currency supplied by third party vendors remains 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 $322.0 million and $401.8 million as of September 30, 2022 and December 31, 2021, respectively.
Our primary commercial arrangement, the Contract Cash Solutions Agreement, as amended, is with Wells Fargo, N.A. (“Wells Fargo”). Wells Fargo provides us with cash up to $300 million with the ability to increase the amount as defined within the agreement or otherwise permitted by the vault cash provider. The term of the agreement expires on June 30, 2024 and will automatically renew for additional one-year periods unless either party provides a ninety-day written notice of its intent not to renew.
We are responsible for losses of cash in the fund dispensing devices under this agreement, and we self-insure for this type of risk. There were no material losses for the three and nine months ended September 30, 2022 and 2021.
v3.22.2.2
TRADE AND OTHER RECEIVABLES
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
TRADE AND OTHER RECEIVABLES TRADE AND OTHER RECEIVABLESTrade and other receivables represent short-term credit granted to customers and long-term loans receivable in connection with our Games and FinTech equipment and compliance products. Trade and loans receivables generally do not require collateral. The balance of trade and loans receivables consists of outstanding balances owed to us by gaming establishments.
The balance of trade and other receivables consisted of the following (in thousands):
 At September 30,At December 31,
20222021
Trade and other receivables, net  
Games trade and loans receivables$83,329 $77,053 
FinTech trade and loans receivables
32,118 21,504 
Contract assets(1)
22,812 15,221 
Other receivables2,995 3,695 
Net investment in sales-type leases
366 1,331 
Total trade and other receivables, net141,620 118,804 
Non-current portion of receivables  
FinTech trade and loans receivables
12,165 7,340 
Games trade and loans receivables2,023 1,348 
Contract assets(1)
10,589 5,294 
Total non-current portion of receivables24,777 13,982 
Total trade and other receivables, current portion$116,843 $104,822 
Allowance for Credit Losses
The activity in our allowance for credit losses for the nine months ended September 30, 2022 and 2021 is as follows (in thousands):
Nine Months Ended September 30,
20222021
Beginning allowance for credit losses$(5,161)$(3,689)
Provision(7,286)(5,499)
Charge-offs and recoveries6,470 4,400 
Ending allowance for credit losses$(5,977)$(4,788)
v3.22.2.2
INVENTORY
 9 Months Ended
Sep. 30, 2022
Inventory Disclosure [Abstract]  
INVENTORY INVENTORY
Our inventory primarily consists of component parts as well as work-in-progress and finished goods. The cost of inventory includes cost of materials, labor, overhead and freight, and is accounted for using the first in, first out method. The inventory is stated at the lower of cost or net realizable value.
Inventory consisted of the following (in thousands):
 At September 30,At December 31,
 20222021
Inventory  
Component parts, net of reserves of $2,582 and $2,422 at September 30, 2022 and December 31, 2021, respectively
$40,063 $22,490 
Work-in-progress
5,019 554 
Finished goods
10,808 6,189 
Total inventory
$55,890 $29,233 
v3.22.2.2
PREPAID EXPENSES AND OTHER ASSETS
 9 Months Ended
Sep. 30, 2022
Prepaid Expense and Other Assets [Abstract]  
PREPAID EXPENSES AND OTHER ASSETS PREPAID EXPENSES AND OTHER ASSETS
Prepaid expenses and other assets include the balance of prepaid expenses, deposits, debt issuance costs on our New Revolver (as defined below), restricted cash, operating lease ROU assets, and other assets. The current portion of these assets is included in prepaid expenses and other current assets and the non-current portion is included in other assets, both of which are contained within the Balance Sheets.
The balance of the current portion of prepaid expenses and other assets consisted of the following (in thousands):
 At September 30,At December 31,
 20222021
Prepaid expenses and other current assets  
Prepaid expenses
$22,632 $14,389 
Deposits
13,353 7,709 
Restricted cash(1)
819 1,616 
Other
2,205 3,585 
Total prepaid expenses and other current assets$39,009 $27,299 
(1) Refer to “Note 2 — Basis of Presentation and Summary of Significant Accounting Policies” for discussion on the composition of the restricted cash balance.
The balance of the non-current portion of other assets consisted of the following (in thousands):
 At September 30,At December 31,
 20222021
Other assets  
Operating lease ROU assets
$18,426 $12,692 
Prepaid expenses and deposits
8,531 4,789 
Debt issuance costs of revolving credit facility1,473 1,760 
Other
227 418 
Total other assets
$28,657 $19,659 
v3.22.2.2
PROPERTY AND EQUIPMENT
 9 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
Property and equipment consist of the following (dollars in thousands):
  At September 30, 2022At December 31, 2021
Useful Life
(Years)		CostAccumulated
Depreciation		Net Book
Value		CostAccumulated
Depreciation		Net Book
Value
Property and equipment       
Rental pool - deployed
2-4
$273,117 $181,886 $91,231 $248,958 $166,075 $82,883 
Rental pool - undeployed
2-4
30,833 24,456 6,377 23,284 18,285 4,999 
FinTech equipment
1-5
36,820 25,267 11,553 32,802 21,257 11,545 
Leasehold and building improvementsLease Term13,227 10,320 2,907 12,598 9,234 3,364 
Machinery, office, and other equipment
1-5
51,539 33,062 18,477 45,277 28,075 17,202 
Total $405,536 $274,991 $130,545 $362,919 $242,926 $119,993 
Depreciation expense related to property and equipment totaled approximately $17.4 million and $48.3 million for the three and nine months ended September 30, 2022, respectively, and $14.5 million and $46.6 million for the three and nine months ended September 30, 2021, respectively.
v3.22.2.2
GOODWILL AND OTHER INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2022
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 $707.2 million and $682.7 million at September 30, 2022 and December 31, 2021, respectively. We have the following reporting units: (i) Games; (ii) Financial Access Services; (iii) Kiosk Sales and Services; (iv) Central Credit Services; (v) Compliance Sales and Services; and (vi) Loyalty Sales and Services.
In accordance with ASC 350 (“Intangibles—Goodwill and Other”), we test goodwill at the reporting unit level, which is identified as an operating segment or one level below, for impairment on an annual basis and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
We test our goodwill for impairment on October 1 each year, or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The annual impairment test is completed using either: a qualitative “Step 0” assessment based on reviewing relevant events and circumstances or a quantitative “Step 1” assessment, which determines the fair value of the reporting unit, using both an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether or not any impairment exists. To the extent the carrying amount of a reporting unit is less than its estimated fair value, an impairment charge is recorded.
There was no impairment identified for our goodwill for the three and nine months ended September 30, 2022 and 2021.
Other Intangible Assets
Other intangible assets consist of the following (dollars in thousands):
  At September 30, 2022At December 31, 2021
Useful Life
(Years)		CostAccumulated
Amortization		Net Book
Value		CostAccumulated
Amortization		Net Book
Value
Other intangible assets       
Contract rights under placement fee agreements
2-7
$57,946 $10,042 $47,904 $58,837 $4,237 $54,600 
Customer relationships
3-14
324,598 226,164 98,434 303,238 206,273 96,965 
Developed technology and software
1-6
383,716 301,164 82,552 342,309 280,412 61,897 
Patents, trade names and other
2-18
22,050 20,012 2,038 20,547 19,415 1,132 
Total$788,310 $557,382 $230,928 $724,931 $510,337 $214,594 
Amortization expense related to other intangible assets was approximately $15.3 million and $43.6 million for the three and nine months ended September 30, 2022, respectively, and $14.6 million and $43.7 million for the three and nine months ended September 30, 2021, respectively.
We evaluate our other intangible assets for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. During the three and nine months ended September 30, 2022 and 2021, there were no material write-downs of intangible assets.
v3.22.2.2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
 9 Months Ended
Sep. 30, 2022
Payables and Accruals [Abstract]  
ACCOUNTS PAYABLE AND ACCRUED EXPENSES ACCOUNTS PAYABLE AND ACCRUED EXPENSES
The following table presents our accounts payable and accrued expenses (in thousands):
 At September 30,At December 31,
 20222021
Accounts payable and accrued expenses  
Customer commissions payable$63,012 $57,515 
Contract liabilities44,460 36,238 
Accounts payable - trade38,336 25,453 
Payroll and related expenses25,646 29,125 
Contingent consideration and acquisition-related liabilities(1)
10,712 — 
Financial access processing and related expenses6,782 3,619 
Operating lease liabilities6,436 5,663 
Accrued interest4,316 9,273 
Accrued taxes3,821 2,756 
Other6,245 4,291 
Total accounts payable and accrued expenses
$209,766 $173,933 
v3.22.2.2
LONG-TERM DEBT
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
LONG-TERM DEBT LONG-TERM DEBT
The following table summarizes our outstanding indebtedness (dollars in thousands):
 MaturityInterestAt September 30,At December 31,
 DateRate20222021
Long-term debt  
$600 million New Term Loan
2028
LIBOR+2.50%
$594,000 $598,500 
$125 million New Revolver
2026
LIBOR+2.50%
— — 
Senior secured credit facilities594,000 598,500 
$400 million 2021 Unsecured Notes
20295.00%400,000 400,000 
Total debt
994,000 998,500 
Debt issuance costs and discount(15,123)(16,975)
Total debt after debt issuance costs and discount
978,877 981,525 
Current portion of long-term debt(6,000)(6,000)
Total long-term debt, net of current portion$972,877 $975,525 
New 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 “New Term Loan”); and (ii) a $125 million senior secured revolving credit facility due 2026, which was undrawn at closing (the “New Revolver” and together with the New Term Loan, the “New 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 “New Credit Agreement”).
The interest rate per annum applicable to the New Credit Facilities will be, at the Company’s option, either the Eurodollar rate with a 0.50% LIBOR floor plus a margin of 2.50% or the base rate plus a margin of 1.50%.

The New Revolver is available for general corporate purposes, including permitted acquisitions, working capital and the issuance of letters of credit. Borrowings under the New Revolver are subject to the satisfaction of customary conditions, including the absence of defaults and the accuracy of representations and warranties. Our New Revolver remained fully undrawn as of September 30, 2022.
The Company is required to make periodic payments on the New Term Loan in an amount equal to 0.25% per quarter of the initial aggregate principal, with the final principal repayment installment on the maturity date. Interest is due in arrears on each interest payment date applicable thereto and at such other times as may be specified in the New Credit Agreement. As to any loan other than a base rate loan, the interest payment dates shall be the last day of each interest period applicable to such loan and the maturity date (provided, however, that if any interest period for a Eurodollar Rate loan exceeds three months, the respective dates that fall every three months after the beginning of such interest period shall also be interest payment dates). As to any base rate loan, commencing on the last business day of December 2021, the interest payment dates shall be last business day of each of March, June, September and December and the maturity date.
Voluntary prepayments of the New Term Loan and the New Revolver and voluntary reductions in the unused commitments are permitted in whole or in part, in minimum amounts as set forth in the New Credit Agreement governing the New Credit Facilities, with prior notice, and without premium or penalty, except that certain refinancings or repricings of the New Term Loan within six months after the Closing Date was subject to a prepayment premium of 1.00% of the principal amount repaid.
The New Credit Agreement contains certain covenants that, among other things, limit the Company’s ability, and the ability of certain of its subsidiaries, to incur additional indebtedness, sell assets or consolidate or merge with or into other companies, pay dividends or repurchase or redeem capital stock, make certain investments, issue capital stock of subsidiaries, incur liens, prepay, redeem or repurchase subordinated debt, and enter into certain types of transactions with its affiliates. The New Credit Agreement also requires the Company, together with its subsidiaries, to comply with a maximum consolidated secured leverage ratio of 4.25:1.00 as of the measurement date.
The weighted average interest rate on the New Term Loan was 4.76% and 3.66% for the three and nine months ended September 30, 2022, respectively.
Senior Unsecured Notes
Our Senior Unsecured Notes (the “2021 USN”) had an outstanding balance of $400.0 million as of September 30, 2022, for which interest accrues 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 New Credit Facilities and the Senior Unsecured Notes as of September 30, 2022.
v3.22.2.2
COMMITMENTS AND CONTINGENCIES
 9 Months Ended
Sep. 30, 2022
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.

FACTA-related matter:

Geraldine Donahue, et al. v. Everi Payments Inc., et al. (“Donahue”) is a putative class action matter filed on December 12, 2018, in the Circuit Court of Cook County, Illinois County Division, Chancery Division. The original defendant was dismissed and Everi Holdings and FinTech (the “Defendants”) were substituted as the defendants on April 22, 2019. The plaintiff, on behalf of herself and others similarly situated, alleges that Everi Holdings and Everi FinTech (i) have violated certain provisions of FACTA by their failure, as agent to the original defendant, to properly truncate patron credit card numbers when printing financial access receipts as required under FACTA, and (ii) have been unjustly enriched through the charging of service fees for transactions conducted at the original defendant’s facilities. The plaintiff sought an award of statutory damages, attorneys’ fees,
and costs. The parties settled this matter on a nationwide class basis. On December 3, 2020, the court entered the Final Order and Judgment approving the settlement and dismissing all claims asserted against the Defendants with prejudice. Everi Holdings and Everi FinTech have paid all funds required pursuant to the settlement. Distributions were made to class members and remaining unclaimed funds were distributed to nonprofit charitable organizations in compliance with the court’s October 4, 2021 approval, and this matter is now closed.

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 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.

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 February 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.

Sadie Saavedra matter:

Sadie Saavedra, et al. v. Everi Payments Inc., et al. is a civil action filed on August 30, 2021, against Everi Holdings and Everi FinTech in the United States District Court, Central District of California (Western Division) by Sadie Saavedra, individually and on behalf of a class of similarly situated individuals, alleging violations of the Unfair Competition Law (California Business & Professions Code § 17200) and unjust enrichment. The plaintiffs allege that certain of Everi’s ATMs screen are deceptive and designed to maximize the number of transaction fees and mislead consumers into incurring fees for transactions. The plaintiffs are seeking restitution, injunctive relief and attorneys’ fees. On April 11, 2022, the Court entered an Order granting the Motion to Dismiss on behalf of Everi Holdings and Everi FinTech. The Plaintiff did not file a timely appeal, and as a result, this matter is closed.

Sightline Payments matter:

Sightline Payments LLC v. Everi Holdings Inc., et al. is a civil action filed on September 30, 2021, against Everi Holdings, Everi FinTech, Everi Games Holding Inc., and Everi Games (collectively referred to herein as “Everi”) 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 Everi’s CashClub Wallet product infringes on certain patents owned by the plaintiff. The plaintiff is seeking compensatory damages. Everi filed a Motion to Dismiss or Transfer for Lack of Venue. On June 1, 2022, the Court granted Everi’s 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. The Court granted plaintiff 14 days to file an amended complaint as to Everi Games Holding Inc. Plaintiff did not file an amended complaint. On June 23, 2022, the plaintiff, Sightline Payments LLC, filed an appeal of the 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.
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, which is pending in the United States District Court. 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 3 — Leases” and installment payments under our purchase agreements discussed in “Note 4 — Business Combinations.”
v3.22.2.2
STOCKHOLDERS' EQUITY
 9 Months Ended
Sep. 30, 2022
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITY
On May 4, 2022, our Board of Directors authorized and approved a new 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. 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 September 30, 2022, Everi had approximately 90.0 million shares issued and outstanding, net of 29.3 million shares held in the Company’s treasury. There is no minimum number of shares that the Company is required to repurchase, and the program may be suspended or discontinued at any time without prior notice. This new repurchase program supersedes and replaces, in its entirety, the previous share repurchase program.
There were 0.9 million and 2.9 million shares repurchased at an average price of $17.29 and $16.87 per share for an aggregate amount of $16.0 million and $49.4 million during the three and nine ended September 30, 2022, respectively. The remaining availability under the May 2022 $150.0 million share repurchase program was $100.6 million as of September 30, 2022. There were no share repurchases during the three and nine months ended September 30, 2021.
v3.22.2.2
WEIGHTED AVERAGE SHARES OF COMMON STOCK
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
WEIGHTED AVERAGE SHARES OF COMMON STOCK WEIGHTED AVERAGE SHARES OF COMMON STOCK
The weighted average number of common stock shares outstanding used in the computation of basic and diluted earnings per share is as follows (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Weighted average shares  
Weighted average number of common shares outstanding - basic90,014 90,322 91,039  88,688 
Potential dilution from equity awards(1)
6,422 11,037 7,267  10,893 
Weighted average number of common shares outstanding - diluted(1)
96,436 101,359 98,306 99,581 
(1) There were 0.2 million and 0.1 million shares that were anti-dilutive under the treasury stock method for the three and nine ended September 30, 2022, respectively. There were no shares that were anti-dilutive under the treasury stock method for the three and nine months ended September 30, 2021.
v3.22.2.2
SHARE-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2022
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; (ii) time-based options; and (iii) market-based options. We estimate forfeiture amounts based on historical patterns.
A summary of award activity is as follows (in thousands):
Stock Options Restricted Stock Units
Outstanding, December 31, 20217,073 3,540 
Granted81 1,276 
Exercised options or vested shares(284)(1,978)
Canceled or forfeited(25)(34)
Outstanding, September 30, 20226,845 2,804 
There were approximately 3.7 million awards of our common stock available for future equity grants under our existing equity incentive plans as of September 30, 2022
v3.22.2.2
INCOME TAXES
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The income tax provision for the three and nine months ended September 30, 2022, reflected an effective income tax rate of 26.0% and 24.2%, respectively, which was greater than the statutory federal rate of 21.0%, primarily due to state taxes, compensation deduction limitations, a net operating loss limitation and an accrual for a foreign withholding tax, partially offset by both a research credit and the benefit from stock option exercises. The income tax benefit for the three months ended September 30, 2021, reflected an effective income tax rate of negative 5.0%. The income tax provision for the nine months ended September 30, 2021, reflected an effective income tax rate of 2.0%. Those rates were less than the statutory federal rate of 21.0%, primarily due to a decrease in our valuation allowance for our deferred tax assets and the benefit from stock option exercises.

We have analyzed filing positions in all of the federal, state, and foreign jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. As of September 30, 2022, we recorded approximately $2.2 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.
v3.22.2.2
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2022
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 allocates resources and measures profitability based on our operating segments, which are managed and reviewed separately, as each represents products and services that can be sold separately to our customers. Our segments are monitored by management for performance against our internal forecasts.
We have reported our financial performance based on our segments in both the current and prior periods. Our CODM determined that our operating segments for conducting business are: (i) Games and (ii) FinTech:
•Everi Games primarily provides gaming operators with gaming technology products and services, including: (i) gaming machines, primarily comprising Class II and Class III slot machines and HHR gaming machines placed under participation or fixed-fee lease arrangements or sold to casino customers; (ii) provision and maintenance of the central determinant systems for the VLTs installed in the State of New York and similar technology in certain tribal jurisdictions; and (iii) B2B digital online gaming activities.
•Everi FinTech provides gaming operators with financial technology and entertainment 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, 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.
Corporate overhead expenses have been allocated to the segments either through specific identification or based on another reasonable methodology. In addition, we record depreciation and amortization expenses to the business segments.
Our business is predominantly domestic with no specific regional concentrations and no significant assets in foreign locations.
The following tables present segment information (in thousands)*:
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Games  
Revenues  
Gaming operations$74,979 $71,580 $219,311 $202,941 
Gaming equipment and systems37,500 24,220 103,766 68,298 
Gaming other41 33 126 82 
Total revenues112,520 95,833 323,203 271,321 
Costs and expenses  
Cost of revenues(1)
  
Gaming operations6,557 5,675 18,674 15,776 
Gaming equipment and systems22,545 13,503 62,721 39,058 
Cost of revenues29,102 19,178 81,395 54,834 
Operating expenses19,860 16,711 57,886 48,871 
Research and development11,298 6,445 28,395 17,966 
Depreciation15,006 12,495 41,321 41,122 
Amortization11,472 10,805 31,744 32,464 
Total costs and expenses86,738 65,634 240,741 195,257 
Operating income$25,782 $30,199 $82,462 $76,064 
(1) Exclusive of depreciation and amortization.
* Rounding may cause variances.
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
FinTech  
Revenues  
Financial access services$53,296 $46,421 $154,051 $129,973 
Software and other22,192 17,024 59,056 49,874 
Hardware16,310 9,024 40,846 28,829 
Total revenues91,798 72,469 253,953 208,676 
Costs and expenses  
Cost of revenues(1)
  
Financial access services2,760 1,830 7,405 4,863 
Software and other1,163 1,063 2,984 3,196 
Hardware10,771 5,380 27,074 17,078 
Cost of revenues14,694 8,273 37,463 25,137 
Operating expenses36,494 30,410 103,344 84,449 
Research and development5,505 3,153 14,991 8,833 
Depreciation2,438 1,968 7,021 5,449 
Amortization3,831 3,791 11,838 11,216 
Total costs and expenses62,962 47,595 174,657 135,084 
Operating income$28,836 $24,874 $79,296 $73,592 
(1)  Exclusive of depreciation and amortization.
* Rounding may cause variances.
 At September 30,At December 31,
 20222021
Total assets  
Games$909,973 $913,880 
FinTech759,550 721,770 
Total assets$1,669,523 $1,635,650 
Major Customers. No single customer accounted for more than 10% of our revenues for the three and nine months ended September 30, 2022 and 2021. Our five largest customers accounted for approximately 14% of our revenues for the three and nine months ended September 30, 2022, and 16% for the three and nine months ended September 30, 2021.
v3.22.2.2
SUBSEQUENT EVENTS
 9 Months Ended
Sep. 30, 2022
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
On October 17, 2022 (the “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.
The Venuetize acquisition of certain products and services represents a strategic expansion within and beyond casino gaming of Everi’s current suite of solutions for the FinTech segment. The acquisition will help to elevate the capabilities of mobile and wallet offerings, and provide Everi with complementary assets and an established customer base expected to enable further growth into additional entertainment, sports and hospitality venues, and also to create new crossover marketing opportunities within the Company's existing footprint.
Under the terms of the asset purchase agreement, the Company made payments totaling $18 million by the time of closing. Subject to achieving certain revenue growth targets over the subsequent thirty-month period post-closing, additional contingent performance payments are expected to be between $2 million and $6 million.
The transaction will be accounted for as a business combination under the acquisition method of accounting in accordance with GAAP. 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 in 2022.
v3.22.2.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
Our unaudited condensed consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Some of the information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. The results for the three and nine months ended September 30, 2022 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.
Revenue Recognition
Revenue Recognition
Overview
We evaluate the recognition of revenue based on the criteria set forth in Accounting Standards Codification (“ASC”) 606 — Revenue from Contracts with Customers and ASC 842 — Leases, as appropriate. We recognize revenue upon transferring control of goods or services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We enter into contracts with customers that include various performance obligations consisting of goods, services, or combinations of goods and services. Timing of the transfer of control varies based on the nature of the contract. We recognize revenue net of any sales and other taxes collected from customers, which are subsequently remitted to governmental authorities and are not included in revenues or operating expenses. We measure revenue based on the consideration specified in a contract with a customer and adjusted, as necessary.
Disaggregation of Revenues
We disaggregate revenues based on the nature and timing of the cash flows generated by such revenues as presented in “Note 18 — Segment Information.”
Contract Balances
Since our contracts may include multiple performance obligations, there is often a timing difference between cash collections and the satisfaction of such performance obligations and revenue recognition. Such arrangements are evaluated to determine whether contract assets and liabilities exist. We generally record contract assets when the timing of billing differs from when revenue is recognized due to contracts containing specific performance obligations that are required to be met prior to a customer being invoiced. We generally record contract liabilities when cash is collected in advance of us satisfying performance obligations, including those that are satisfied over a period of time. Balances of our contract assets and contract liabilities may fluctuate due to timing of invoicing and cash collections.
The following table summarizes our contract assets and contract liabilities arising from contracts with customers (in thousands):
20222021
Contract assets(1)
Balance at January 1 - current$9,927 $9,240 
Balance at January 1 - non-current5,294 8,321 
Total
15,221 17,561 
Balance at September 30 - current12,223 9,728 
Balance at September 30 - non-current10,589 5,647 
Total
22,812 15,375 
         Increase (decrease)$7,591 $(2,186)
Contract liabilities(2)
Balance at January 1 - current$36,238 $26,980 
Balance at January 1 - non-current377 289 
Total
36,615 27,269 
Balance at September 30 - current44,460 36,503 
Balance at September 30 - non-current2,246 493 
Total
46,706 36,996 
         Increase $10,091 $9,727 
(1)  The current portion of contract assets is included within trade and other receivables, net, and the non-current portion is included within other receivables in our Balance Sheets.
(2)  The current portion of contract liabilities is included within accounts payable and accrued expenses, and the non-current portion is included within other accrued expenses and liabilities in our Balance Sheets.
We recognized approximately $25.1 million and $21.0 million in revenue that was included in the beginning contract liabilities balance during the nine months ended September 30, 2022 and 2021, 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, 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; (ii) Gaming Equipment and Systems; and (iii) Gaming Other.
We recognize our Gaming Operations revenue based on criteria set forth in ASC 842 or ASC 606, as applicable. The amount of lease revenue included in our Gaming Operations revenues and recognized under ASC 842 was approximately $51.4 million and $148.0 million for the three and nine months ended September 30, 2022, respectively, and $49.2 million and $141.6 million for the three and nine months ended September 30, 2021, 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. In addition, our services operate as part of an end-to-end security suite to protect against cyber-related attacks and maintain the necessary secured environments to maintain compliance with applicable regulatory requirements. These solutions include: access to cash and cashless funding at gaming facilities via ATM debit withdrawals, credit card financial access transactions, and POS debit card purchases at casino cages, kiosk and mobile POS devices; accounts for the CashClub Wallet, check warranty services, self-service loyalty and fully integrated kiosk maintenance services; self-service loyalty tools and promotion management software; compliance, audit, and data software; casino credit data and reporting services; marketing and promotional offering subscription-based services; and other ancillary offerings. We conduct our FinTech segment business based on results generated from the following major revenue streams: (i) Financial Access Services; (ii) Software and Other; and (iii) Hardware.
Hardware revenues are derived from the sale of our financial access and loyalty kiosks and related equipment and are accounted for under ASC 606, unless such transactions meet the definition of a sales type or direct financing lease, which are accounted for under ASC 842. We did not have any material financial access kiosk and related equipment sales contracts accounted for under ASC 842 during the three and nine months ended September 30, 2022 and 2021.
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; (iii) wide area progressive (“WAP”)-related restricted funds; and (iv) financial access activities related to cashless balances held on behalf of patrons.
Allowance for Credit Losses
Allowance for Credit Losses
We continually evaluate the collectability of outstanding balances and maintain an allowance for credit losses related to our trade and other receivables and notes receivable that have been determined to have a high risk of uncollectability, which represents our best estimates of the current expected credit losses to be incurred in the future. To derive our estimates, we analyze historical collection trends and changes in our customer payment patterns, current and expected conditions and market trends along with our operating forecasts, concentration, and creditworthiness when evaluating the adequacy of our allowance for credit losses. In addition, with respect to our check warranty receivables, we are exposed to risk for the losses associated with warranted items that cannot be collected from patrons issuing these items. We evaluate the collectability of the outstanding balances and establish a reserve for the face amount of the current expected credit losses related to these receivables. Account balances are charged against the provision when the Company believes it is probable the receivable will not be recovered. The provision for doubtful accounts receivable is included within operating expenses and the check warranty loss reserves are included within financial access services cost of revenues in the Statements of Operations.
Goodwill
Goodwill
Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. We test for impairment annually on a reporting unit basis, at the beginning of our fourth fiscal quarter and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The annual impairment test is completed using either: a qualitative “Step 0” assessment based on reviewing relevant events and circumstances; or a quantitative “Step 1” assessment, which determines the fair value of the reporting unit, using both an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether an impairment exists. To the extent the carrying amount of a reporting unit is less than its estimated fair value, an impairment charge is recorded.
The evaluation of impairment of goodwill requires the use of estimates about future operating results. Changes in forecasted operations can materially affect these estimates, which could materially affect our results of operations and financial condition. The estimates of expected future cash flows require significant judgment and are based on assumptions we determined to be reasonable; however, they are unpredictable and inherently uncertain, including, estimates of future growth rates, operating margins and assumptions about the overall economic climate as well as the competitive environment within which we operate. There can be no assurance that our estimates and assumptions made for purposes of our impairment assessments as of the time of evaluation will prove to be accurate predictions of the future. If our assumptions regarding business plans, competitive environments, or anticipated growth rates are not correct, we may be required to record non-cash impairment charges in future periods, whether in connection with our normal review procedures periodically, or earlier, if an indicator of an impairment is present prior to such evaluation.Our reporting units are identified as operating segments or one level below. Reporting units must: (i) engage in business activities from which they earn revenues and incur expenses; (ii) have operating results that are regularly reviewed by our segment management to ascertain the resources to be allocated to the segment and assess its performance; and (iii) have discrete financial information available.
Fair Values of Financial Instruments
Fair Values of Financial Instruments
The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument.
The carrying amount of cash and cash equivalents, restricted cash, settlement receivables, short-term trade and other receivables, settlement liabilities, accounts payable, and accrued expenses approximate fair value due to the short-term maturities of these instruments. The fair value of the long-term trade and loans receivable is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. The fair value of long-term accounts payable is estimated by discounting the total obligation using the appropriate interest rates.
Recent Accounting Guidance
Recently Adopted Accounting Guidance
StandardDescriptionDate of AdoptionEffect on Financial Statements
ASU 2021-05, 'Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments
This ASU amends the lease classification requirements for lessors to align them with practice under ASC Topic 840January 1, 2022The adoption of this ASU did not have a material effect on our Financial Statements or on our disclosures.
Recent Accounting Guidance Not Yet Adopted
As of September 30, 2022, we do not anticipate recently issued accounting guidance to have a significant future impact on our consolidated financial statements.
v3.22.2.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
Contract Asset and Liability
The following table summarizes our contract assets and contract liabilities arising from contracts with customers (in thousands):
20222021
Contract assets(1)
Balance at January 1 - current$9,927 $9,240 
Balance at January 1 - non-current5,294 8,321 
Total
15,221 17,561 
Balance at September 30 - current12,223 9,728 
Balance at September 30 - non-current10,589 5,647 
Total
22,812 15,375 
         Increase (decrease)$7,591 $(2,186)
Contract liabilities(2)
Balance at January 1 - current$36,238 $26,980 
Balance at January 1 - non-current377 289 
Total
36,615 27,269 
Balance at September 30 - current44,460 36,503 
Balance at September 30 - non-current2,246 493 
Total
46,706 36,996 
         Increase $10,091 $9,727 
(1)  The current portion of contract assets is included within trade and other receivables, net, and the non-current portion is included within other receivables in our Balance Sheets.
(2)  The current portion of contract liabilities is included within accounts payable and accrued expenses, and the non-current portion is included within other accrued expenses and liabilities in our Balance Sheets.
Reconciliation of Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows for the nine months ended September 30, 2022 (in thousands).
Classification on our Balance Sheets
At September 30, 2022
At December 31, 2021
Cash and cash equivalentsCash and cash equivalents$258,627 $302,009 
Restricted cash - currentPrepaid expenses and other current assets819 1,616 
Restricted cash - non-currentOther assets101 101 
Total
$259,547 $303,726 
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 nine months ended September 30, 2022 (in thousands).
Classification on our Balance Sheets
At September 30, 2022
At December 31, 2021
Cash and cash equivalentsCash and cash equivalents$258,627 $302,009 
Restricted cash - currentPrepaid expenses and other current assets819 1,616 
Restricted cash - non-currentOther assets101 101 
Total
$259,547 $303,726 
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
September 30, 2022   
$600 million New Term Loan
2$572,972 $594,000 
$400 million 2021 Unsecured Notes
2$329,984 $400,000 
December 31, 2021   
$600 million New Term Loan
2$598,171 $598,500 
$400 million 2021 Unsecured Notes
2$404,000 $400,000 
Summary of Recent Accounting Guidance
Recently Adopted Accounting Guidance
StandardDescriptionDate of AdoptionEffect on Financial Statements
ASU 2021-05, 'Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments
This ASU amends the lease classification requirements for lessors to align them with practice under ASC Topic 840January 1, 2022The adoption of this ASU did not have a material effect on our Financial Statements or on our disclosures.
v3.22.2.2
LEASES (Tables)
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Balance Sheet Information
Supplemental balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance Sheets
At September 30, 2022
At December 31, 2021
Assets
Operating lease ROU assetsOther assets, non-current$18,426 $12,692 
Liabilities
Current operating lease liabilitiesAccounts payable and accrued expenses$6,436 $5,663 
Non-current operating lease liabilitiesOther accrued expenses and liabilities$16,281 $11,869 
Cash Flow Information
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Cash paid for:
Long-term operating leases$1,855 $1,660 $5,165 $5,030 
Short-term operating leases$398 $400 $1,205 $1,219 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases(1)
$997 $396 $7,448 $1,063 
(1) The amounts are presented net of current year terminations and exclude amortization for the period.
Lease Costs Other information related to lease terms and discount rates is as follows:
At September 30, 2022At December 31, 2021
Weighted Average Remaining Lease Term (in years):
Operating leases3.573.52
Weighted Average Discount Rate:
Operating leases4.71 %5.04 %
Components of lease expense, which are included in operating expenses, are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Operating Lease Cost:
Operating lease cost
$1,663 $1,276 $4,492 $4,192 
Variable lease cost $259 $311 $902 $946 
Payments Due
Maturities of lease liabilities are summarized as follows as of September 30, 2022 (in thousands):
Year Ending December 31, Amount
2022 (excluding the nine months ended September 30, 2022)
$1,750 
2023
7,293 
2024
6,747 
2025
5,834 
2026
2,137 
Thereafter967 
Total future minimum lease payments 24,728 
Less: Amount representing interest 2,011 
Present value of future minimum lease payments22,717 
Less: Current operating lease obligations6,436 
Long-term lease obligations$16,281 
Sales-type lease
Supplemental balance sheet information related to our sales-type leases is as follows (in thousands):
Classification on our Balance SheetsAt September 30, 2022At December 31, 2021
Assets
Net investment in sales-type leases - currentTrade and other receivables, net$366 $1,331 
v3.22.2.2
Business Combinations and Asset Acquisitions (Tables)
 9 Months Ended
Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Total Purchase Consideration
The total preliminary purchase consideration for ecash was as follows (in thousands, at fair value):
Amount in USD
Purchase consideration
Cash consideration paid at closing$14,980 
Cash consideration post-closing15,905 
Total purchase consideration$30,885 
The total preliminary purchase consideration for Intuicode was as follows (in thousands, at fair value):
Amount in USD
Purchase consideration
Cash consideration paid at closing$12,500 
Cash consideration post-closing1,595 
Total cash consideration 14,095 
Contingent consideration (at fair value)12,150 
Total purchase consideration$26,245 
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The information below reflects the preliminary amounts of identifiable assets acquired and liabilities assumed (in thousands):
Amount in USD*
Current assets$12,850 
Property and equipment1,218 
    Other intangible assets
11,600 
Goodwill11,861 
    Other assets726 
Total Assets38,255 
Accounts payable and accrued expenses7,160 
Other accrued expenses and liabilities210 
Total liabilities7,370 
Net assets acquired$30,885 
_______________________
*Reflects a measurement period adjustment of approximately $1.2 million from the initial allocation as of the closing date of the transaction.
The information below reflects the preliminary amounts of identifiable assets acquired and liabilities assumed as of the closing date of the transaction (in thousands):
Amount in USD
Current assets$3,944 
    Other intangible assets
18,757 
Goodwill10,422 
Total Assets33,123 
Accounts payable and accrued expenses2,407 
    Deferred tax liabilities 4,471 
Total liabilities6,878 
Net assets acquired$26,245 
Finite-Lived Intangible Assets Acquired
The following table summarizes preliminary values of acquired intangible assets (dollars in thousands):
Useful Life (Years)Estimated Fair Value (USD)
Other Intangible Assets
Trade name
3
$700 
Developed technology
3
3,600 
Customer relationships
9
7,300 
Total other intangible assets$11,600 
The following table summarizes preliminary values of acquired intangible assets (dollars in thousands):
Useful Life (Years)Estimated Fair Value (USD)
Other Intangible Assets
Trade name
10
$400 
Developed technology
2
3,357 
Customer relationships
9
15,000 
Total other intangible assets$18,757 
v3.22.2.2
TRADE AND OTHER RECEIVABLES (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Schedule of Components of Trade and Other Receivables
The balance of trade and other receivables consisted of the following (in thousands):
 At September 30,At December 31,
20222021
Trade and other receivables, net  
Games trade and loans receivables$83,329 $77,053 
FinTech trade and loans receivables
32,118 21,504 
Contract assets(1)
22,812 15,221 
Other receivables2,995 3,695 
Net investment in sales-type leases
366 1,331 
Total trade and other receivables, net141,620 118,804 
Non-current portion of receivables  
FinTech trade and loans receivables
12,165 7,340 
Games trade and loans receivables2,023 1,348 
Contract assets(1)
10,589 5,294 
Total non-current portion of receivables24,777 13,982 
Total trade and other receivables, current portion$116,843 $104,822 
Activity in Allowance for Credit Losses
The activity in our allowance for credit losses for the nine months ended September 30, 2022 and 2021 is as follows (in thousands):
Nine Months Ended September 30,
20222021
Beginning allowance for credit losses$(5,161)$(3,689)
Provision(7,286)(5,499)
Charge-offs and recoveries6,470 4,400 
Ending allowance for credit losses$(5,977)$(4,788)
v3.22.2.2
INVENTORY (Tables)
 9 Months Ended
Sep. 30, 2022
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
Inventory consisted of the following (in thousands):
 At September 30,At December 31,
 20222021
Inventory  
Component parts, net of reserves of $2,582 and $2,422 at September 30, 2022 and December 31, 2021, respectively
$40,063 $22,490 
Work-in-progress
5,019 554 
Finished goods
10,808 6,189 
Total inventory
$55,890 $29,233 
v3.22.2.2
PREPAID EXPENSES AND OTHER ASSETS (Tables)
 9 Months Ended
Sep. 30, 2022
Prepaid Expense and Other Assets [Abstract]  
Schedule of Components of Current Portion of Prepaid and Other Assets
The balance of the current portion of prepaid expenses and other assets consisted of the following (in thousands):
 At September 30,At December 31,
 20222021
Prepaid expenses and other current assets  
Prepaid expenses
$22,632 $14,389 
Deposits
13,353 7,709 
Restricted cash(1)
819 1,616 
Other
2,205 3,585 
Total prepaid expenses and other current assets$39,009 $27,299 
(1) Refer to “Note 2 — Basis of Presentation and Summary of Significant Accounting Policies” for discussion on the composition of the restricted cash balance.
Schedule of Components of Non-Current Portion of Prepaid and Other Assets
The balance of the non-current portion of other assets consisted of the following (in thousands):
 At September 30,At December 31,
 20222021
Other assets  
Operating lease ROU assets
$18,426 $12,692 
Prepaid expenses and deposits
8,531 4,789 
Debt issuance costs of revolving credit facility1,473 1,760 
Other
227 418 
Total other assets
$28,657 $19,659 
v3.22.2.2
PROPERTY AND EQUIPMENT (Tables)
 9 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Components of Property, Equipment and Leased Assets
Property and equipment consist of the following (dollars in thousands):
  At September 30, 2022At December 31, 2021
Useful Life
(Years)		CostAccumulated
Depreciation		Net Book
Value		CostAccumulated
Depreciation		Net Book
Value
Property and equipment       
Rental pool - deployed
2-4
$273,117 $181,886 $91,231 $248,958 $166,075 $82,883 
Rental pool - undeployed
2-4
30,833 24,456 6,377 23,284 18,285 4,999 
FinTech equipment
1-5
36,820 25,267 11,553 32,802 21,257 11,545 
Leasehold and building improvementsLease Term13,227 10,320 2,907 12,598 9,234 3,364 
Machinery, office, and other equipment
1-5
51,539 33,062 18,477 45,277 28,075 17,202 
Total $405,536 $274,991 $130,545 $362,919 $242,926 $119,993 
v3.22.2.2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Other Intangible Assets
Other intangible assets consist of the following (dollars in thousands):
  At September 30, 2022At December 31, 2021
Useful Life
(Years)		CostAccumulated
Amortization		Net Book
Value		CostAccumulated
Amortization		Net Book
Value
Other intangible assets       
Contract rights under placement fee agreements
2-7
$57,946 $10,042 $47,904 $58,837 $4,237 $54,600 
Customer relationships
3-14
324,598 226,164 98,434 303,238 206,273 96,965 
Developed technology and software
1-6
383,716 301,164 82,552 342,309 280,412 61,897 
Patents, trade names and other
2-18
22,050 20,012 2,038 20,547 19,415 1,132 
Total$788,310 $557,382 $230,928 $724,931 $510,337 $214,594 
v3.22.2.2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)
 9 Months Ended
Sep. 30, 2022
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Accrued Expenses
The following table presents our accounts payable and accrued expenses (in thousands):
 At September 30,At December 31,
 20222021
Accounts payable and accrued expenses  
Customer commissions payable$63,012 $57,515 
Contract liabilities44,460 36,238 
Accounts payable - trade38,336 25,453 
Payroll and related expenses25,646 29,125 
Contingent consideration and acquisition-related liabilities(1)
10,712 — 
Financial access processing and related expenses6,782 3,619 
Operating lease liabilities6,436 5,663 
Accrued interest4,316 9,273 
Accrued taxes3,821 2,756 
Other6,245 4,291 
Total accounts payable and accrued expenses
$209,766 $173,933 
v3.22.2.2
LONG-TERM DEBT (Tables)
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Outstanding Indebtedness
The following table summarizes our outstanding indebtedness (dollars in thousands):
 MaturityInterestAt September 30,At December 31,
 DateRate20222021
Long-term debt  
$600 million New Term Loan
2028
LIBOR+2.50%
$594,000 $598,500 
$125 million New Revolver
2026
LIBOR+2.50%
— — 
Senior secured credit facilities594,000 598,500 
$400 million 2021 Unsecured Notes
20295.00%400,000 400,000 
Total debt
994,000 998,500 
Debt issuance costs and discount(15,123)(16,975)
Total debt after debt issuance costs and discount
978,877 981,525 
Current portion of long-term debt(6,000)(6,000)
Total long-term debt, net of current portion$972,877 $975,525 
v3.22.2.2
WEIGHTED AVERAGE SHARES OF COMMON STOCK (Tables)
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Schedule of Weighted Average Number of Shares
The weighted average number of common stock shares outstanding used in the computation of basic and diluted earnings per share is as follows (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Weighted average shares  
Weighted average number of common shares outstanding - basic90,014 90,322 91,039  88,688 
Potential dilution from equity awards(1)
6,422 11,037 7,267  10,893 
Weighted average number of common shares outstanding - diluted(1)
96,436 101,359 98,306 99,581 
(1) There were 0.2 million and 0.1 million shares that were anti-dilutive under the treasury stock method for the three and nine ended September 30, 2022, respectively. There were no shares that were anti-dilutive under the treasury stock method for the three and nine months ended September 30, 2021.
v3.22.2.2
SHARE-BASED COMPENSATION (Tables)
 9 Months Ended
Sep. 30, 2022
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, 20217,073 3,540 
Granted81 1,276 
Exercised options or vested shares(284)(1,978)
Canceled or forfeited(25)(34)
Outstanding, September 30, 20226,845 2,804 
v3.22.2.2
SEGMENT INFORMATION (Tables)
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Schedule of Segment Information
The following tables present segment information (in thousands)*:
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Games  
Revenues  
Gaming operations$74,979 $71,580 $219,311 $202,941 
Gaming equipment and systems37,500 24,220 103,766 68,298 
Gaming other41 33 126 82 
Total revenues112,520 95,833 323,203 271,321 
Costs and expenses  
Cost of revenues(1)
  
Gaming operations6,557 5,675 18,674 15,776 
Gaming equipment and systems22,545 13,503 62,721 39,058 
Cost of revenues29,102 19,178 81,395 54,834 
Operating expenses19,860 16,711 57,886 48,871 
Research and development11,298 6,445 28,395 17,966 
Depreciation15,006 12,495 41,321 41,122 
Amortization11,472 10,805 31,744 32,464 
Total costs and expenses86,738 65,634 240,741 195,257 
Operating income$25,782 $30,199 $82,462 $76,064 
(1) Exclusive of depreciation and amortization.
* Rounding may cause variances.
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
FinTech  
Revenues  
Financial access services$53,296 $46,421 $154,051 $129,973 
Software and other22,192 17,024 59,056 49,874 
Hardware16,310 9,024 40,846 28,829 
Total revenues91,798 72,469 253,953 208,676 
Costs and expenses  
Cost of revenues(1)
  
Financial access services2,760 1,830 7,405 4,863 
Software and other1,163 1,063 2,984 3,196 
Hardware10,771 5,380 27,074 17,078 
Cost of revenues14,694 8,273 37,463 25,137 
Operating expenses36,494 30,410 103,344 84,449 
Research and development5,505 3,153 14,991 8,833 
Depreciation2,438 1,968 7,021 5,449 
Amortization3,831 3,791 11,838 11,216 
Total costs and expenses62,962 47,595 174,657 135,084 
Operating income$28,836 $24,874 $79,296 $73,592 
(1)  Exclusive of depreciation and amortization.
* Rounding may cause variances.
 At September 30,At December 31,
 20222021
Total assets  
Games$909,973 $913,880 
FinTech759,550 721,770 
Total assets$1,669,523 $1,635,650 
v3.22.2.2
BUSINESS - Narrative (Details)
 9 Months Ended
Sep. 30, 2022
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of business segments 2
v3.22.2.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Contract Asset and Liability (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Contract assets        
Contract assets, current $ 12,223 $ 9,728 $ 9,927 $ 9,240
Contract assets, noncurrent 10,589 5,647 5,294 8,321
Total 22,812 15,375 15,221 17,561
Increase (decrease) 7,591 (2,186)    
Contract liabilities        
Contract liabilities, current 44,460 36,503 36,238 26,980
Contract liabilities, noncurrent 2,246 493 377 289
Total 46,706 36,996 $ 36,615 $ 27,269
Increase $ 10,091 $ 9,727    
v3.22.2.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Mar. 31, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Disaggregation of Revenue [Line Items]          
Contract with customer liability       $ 25,100 $ 21,000
Total revenues $ 204,318   $ 168,302 $ 577,156 479,997
Contractual terms of trade and loans receivable   12 months   12 months  
Games          
Disaggregation of Revenue [Line Items]          
Total revenues 112,520   95,833 $ 323,203 271,321
Games | Gaming operations, leased equipment          
Disaggregation of Revenue [Line Items]          
Total revenues $ 51,400   $ 49,200 $ 148,000 $ 141,600
v3.22.2.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Cash (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Dec. 31, 2020
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 258,627 $ 302,009    
Restricted Cash, Current, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets Prepaid expenses and other current assets    
Restricted cash - current $ 819 $ 1,616    
Restricted Cash, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other assets Other assets    
Restricted cash - non-current $ 101 $ 101    
Total 259,547 303,726 $ 216,886 $ 252,349
Cash and Cash Equivalents        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 258,627 $ 302,009    
v3.22.2.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Fair Value and Outstanding Balances of Borrowings (Details) - USD ($)
Sep. 30, 2022
Dec. 31, 2021
Aug. 03, 2021
Dec. 31, 2019
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   $ 400,000,000
Fair Value | Level 2 | New Term Loan        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Long-term debt 572,972,000 598,171,000    
Fair Value | Level 2 | Incremental Term Loan        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Long-term debt 329,984,000 404,000,000    
Outstanding Balance | Level 2 | New Term Loan        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Long-term debt 594,000,000 598,500,000    
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    
v3.22.2.2
LEASES - Narrative (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Lessee, Lease, Description [Line Items]        
Sales-type lease, revenue $ 0 $ 0 $ 0 $ 0
Minimum        
Lessee, Lease, Description [Line Items]        
Renewal term 1 year   1 year  
Maximum        
Lessee, Lease, Description [Line Items]        
Renewal term 10 years   10 years  
v3.22.2.2
LEASES - Balance Sheet Information (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Leases [Abstract]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Other assets Other assets
Operating lease ROU assets $ 18,426 $ 12,692
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accounts payable and accrued expenses Accounts payable and accrued expenses
Current operating lease liabilities $ 6,436 $ 5,663
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 $ 16,281 $ 11,869
v3.22.2.2
LEASES - Cash Flow Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Cash paid for:        
Long-term operating leases $ 1,855 $ 1,660 $ 5,165 $ 5,030
Short-term operating leases 398 400 1,205 1,219
Right-of-use assets obtained in exchange for lease obligations:        
Operating leases $ 997 $ 396 $ 7,448 $ 1,063
v3.22.2.2
LEASES - Lease Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Leases [Abstract]          
Weighted average remaining lease term, operating leases 3 years 6 months 25 days   3 years 6 months 25 days   3 years 6 months 7 days
Weighted average discount rate, operating leases 4.71%   4.71%   5.04%
Operating lease cost $ 1,663 $ 1,276 $ 4,492 $ 4,192  
Variable lease cost $ 259 $ 311 $ 902 $ 946  
v3.22.2.2
LEASES - Payments Due (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Amount    
2022 (excluding the nine months ended September 30, 2022) $ 1,750  
2023 7,293  
2024 6,747  
2025 5,834  
2026 2,137  
Thereafter 967  
Total future minimum lease payments 24,728  
Less: Amount representing interest 2,011  
Present value of future minimum lease payments 22,717  
Current operating lease liabilities 6,436 $ 5,663
Long-term lease obligations $ 16,281 $ 11,869
v3.22.2.2
LEASES - Sales-type lease (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Leases [Abstract]    
Net investment in sales-type leases - current $ 366 $ 1,331
v3.22.2.2
BUSINESS COMBINATIONS - Narrative (Details)
$ in Thousands, $ in Millions
 3 Months Ended 7 Months Ended 9 Months Ended
Apr. 30, 2022
USD ($)
Mar. 01, 2022
AUD ($)
Mar. 01, 2022
USD ($)
Sep. 30, 2022
USD ($)
Jun. 30, 2022
AUD ($)
Jun. 30, 2022
USD ($)
Sep. 30, 2021
USD ($)
Sep. 30, 2022
USD ($)
Sep. 30, 2022
USD ($)
business
Sep. 30, 2021
USD ($)
Business Acquisition [Line Items]                    
Number of acquired businesses | business                 2  
ecash Holdings Pty Limited                    
Business Acquisition [Line Items]                    
Cash consideration paid at closing   $ 20.0 $ 14,980              
Contingent consideration     $ 10,000              
Payments for excess net working capital         $ 8.7 $ 6,000        
Cash payments, noncurrent, payment period   2 years 2 years              
Goodwill, amortization period   15 years 15 years              
Adjustment assets     $ 1,200              
Cash       $ 2,800       $ 2,800 $ 2,800  
Trade receivables       5,700       5,700 5,700  
Inventory       4,200       4,200 4,200  
Other intangible assets     11,600 11,600       11,600 11,600  
Revenue since acquisition date               9,400    
Net loss since acquisition date               0    
Transaction costs                 200  
Cash consideration post-closing     15,905              
Business combination, consideration transferred     $ 30,885              
ecash Holdings Pty Limited | Customer relationships                    
Business Acquisition [Line Items]                    
Other intangible assets       $ 7,300       $ 7,300 $ 7,300  
ecash Holdings Pty Limited | Customer relationships | Measurement Input, Discount Rate                    
Business Acquisition [Line Items]                    
Finite-lived intangible assets acquired, measurement input       0.17       0.17 0.17  
ecash Holdings Pty Limited | Developed technology                    
Business Acquisition [Line Items]                    
Other intangible assets       $ 3,600       $ 3,600 $ 3,600  
ecash Holdings Pty Limited | Developed technology | Measurement Input, Discount Rate                    
Business Acquisition [Line Items]                    
Finite-lived intangible assets acquired, measurement input       0.17       0.17 0.17  
ecash Holdings Pty Limited | Developed technology | Measurement Input, Royalty Rate                    
Business Acquisition [Line Items]                    
Finite-lived intangible assets acquired, measurement input       0.075       0.075 0.075  
ecash Holdings Pty Limited | Trade name                    
Business Acquisition [Line Items]                    
Other intangible assets       $ 700       $ 700 $ 700  
ecash Holdings Pty Limited | Trade name | Measurement Input, Discount Rate                    
Business Acquisition [Line Items]                    
Finite-lived intangible assets acquired, measurement input       0.17       0.17 0.17  
ecash Holdings Pty Limited | Trade name | Measurement Input, Royalty Rate                    
Business Acquisition [Line Items]                    
Finite-lived intangible assets acquired, measurement input       0.02       0.02 0.02  
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]                    
Cash consideration paid at closing $ 12,500                  
Cash payments, noncurrent, payment period 2 years                  
Goodwill, amortization period                 15 years  
Cash       $ 2,100       $ 2,100 $ 2,100  
Trade receivables       600       600 600  
Inventory       400       400 400  
Other intangible assets       18,757       18,757 18,757  
Revenue since acquisition date               3,600    
Net loss since acquisition date               $ 700    
Transaction costs                 $ 100  
Cash consideration post-closing           $ 1,600        
Business combination, contingent consideration, earn-out liability $ 13,000                  
Business combination, consideration transferred $ 26,245     $ 27,100            
Intuicode | Measurement Input, Discount Rate                    
Business Acquisition [Line Items]                    
Acquired business discount rate       0.05       0.05 0.05  
Intuicode | Customer relationships                    
Business Acquisition [Line Items]                    
Other intangible assets       $ 15,000       $ 15,000 $ 15,000  
Intuicode | Customer relationships | Measurement Input, Discount Rate                    
Business Acquisition [Line Items]                    
Finite-lived intangible assets acquired, measurement input       0.40       0.40 0.40  
Intuicode | Developed technology                    
Business Acquisition [Line Items]                    
Other intangible assets       $ 3,357       $ 3,357 $ 3,357  
Intuicode | Developed technology | Measurement Input, Discount Rate                    
Business Acquisition [Line Items]                    
Finite-lived intangible assets acquired, measurement input       0.35       0.35 0.35  
Intuicode | Developed technology | Measurement Input, Royalty Rate                    
Business Acquisition [Line Items]                    
Finite-lived intangible assets acquired, measurement input       0.25       0.25 0.25  
Intuicode | Trade name                    
Business Acquisition [Line Items]                    
Other intangible assets       $ 400       $ 400 $ 400  
Intuicode | Trade name | Measurement Input, Discount Rate                    
Business Acquisition [Line Items]                    
Finite-lived intangible assets acquired, measurement input       0.40       0.40 0.40  
Intuicode | Trade name | Measurement Input, Royalty Rate                    
Business Acquisition [Line Items]                    
Finite-lived intangible assets acquired, measurement input       0.01       0.01 0.01  
ecash Holdings Pty Limited and Intuicode Gaming Corporation                    
Business Acquisition [Line Items]                    
Pro forma revenue       $ 204,300     $ 174,900   $ 587,200 $ 504,100
Pro forma net income (loss)       $ 29,400     $ 6,900   $ 93,200 $ 65,000
v3.22.2.2
BUSINESS COMBINATIONS - Schedule of Total Purchase Consideration (Details)
$ in Thousands, $ in Millions
 3 Months Ended
Apr. 30, 2022
USD ($)
Mar. 01, 2022
AUD ($)
Mar. 01, 2022
USD ($)
Sep. 30, 2022
USD ($)
Jun. 30, 2022
USD ($)
Dec. 31, 2021
USD ($)
Business Acquisition [Line Items]            
Contingent consideration (at fair value)       $ 10,712   $ 0
ecash Holdings Pty Limited            
Business Acquisition [Line Items]            
Cash consideration paid at closing   $ 20.0 $ 14,980      
Cash consideration post-closing     15,905      
Total purchase consideration     $ 30,885      
Intuicode            
Business Acquisition [Line Items]            
Cash consideration paid at closing $ 12,500          
Cash consideration post-closing         $ 1,600  
Cash consideration post-closing 1,595          
Total cash consideration 14,095          
Contingent consideration (at fair value) 12,150          
Total purchase consideration $ 26,245     $ 27,100    
v3.22.2.2
BUSINESS COMBINATIONS - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Mar. 01, 2022
Dec. 31, 2021
Business Acquisition [Line Items]      
Goodwill $ 707,214   $ 682,663
ecash Holdings Pty Limited      
Business Acquisition [Line Items]      
Current assets   $ 12,850  
Property and equipment   1,218  
Other intangible assets 11,600 11,600  
Goodwill   11,861  
Other assets   726  
Total Assets   38,255  
Accounts payable and accrued expenses   7,160  
Other accrued expenses and liabilities   210  
Total liabilities   7,370  
Net assets acquired   $ 30,885  
Intuicode      
Business Acquisition [Line Items]      
Current assets 3,944    
Other intangible assets 18,757    
Goodwill 10,422    
Total Assets 33,123    
Accounts payable and accrued expenses 2,407    
Deferred tax liabilities 4,471    
Total liabilities 6,878    
Net assets acquired $ 26,245    
v3.22.2.2
BUSINESS COMBINATIONS - Intangible Assets Acquired as Part of Business Combination (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Mar. 01, 2022
ecash Holdings Pty Limited    
Business Acquisition [Line Items]    
Other intangible assets $ 11,600 $ 11,600
Intuicode    
Business Acquisition [Line Items]    
Other intangible assets $ 18,757  
Trade name | ecash Holdings Pty Limited    
Business Acquisition [Line Items]    
Useful Life (Years) 3 years  
Other intangible assets $ 700  
Trade name | Intuicode    
Business Acquisition [Line Items]    
Useful Life (Years) 10 years  
Other intangible assets $ 400  
Developed technology | ecash Holdings Pty Limited    
Business Acquisition [Line Items]    
Useful Life (Years) 3 years  
Other intangible assets $ 3,600  
Developed technology | Intuicode    
Business Acquisition [Line Items]    
Useful Life (Years) 2 years  
Other intangible assets $ 3,357  
Customer relationships | ecash Holdings Pty Limited    
Business Acquisition [Line Items]    
Useful Life (Years) 9 years  
Other intangible assets $ 7,300  
Customer relationships | Intuicode    
Business Acquisition [Line Items]    
Useful Life (Years) 9 years  
Other intangible assets $ 15,000  
v3.22.2.2
FUNDING AGREEMENTS (Details) - Indemnification Guarantee - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Contract Cash Solutions Agreement          
Funding Agreements          
Cash usage fees incurred $ 2,700,000 $ 1,200,000 $ 5,500,000 $ 2,900,000  
Outstanding balance 322,000,000   322,000,000   $ 401,800,000
Contract Cash Solutions Agreement, as amended          
Funding Agreements          
Maximum amount $ 300,000,000   $ 300,000,000    
Renewal period     1 year    
Guarantor obligations, non-renewal notice period     90 days    
v3.22.2.2
TRADE AND OTHER RECEIVABLES - Schedule of Components of Trade and Other Receivables (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Trade and other receivables, net    
Contract assets $ 22,812 $ 15,221
Other receivables 2,995 3,695
Net investment in sales-type leases 366 1,331
Total trade and other receivables, net 141,620 118,804
Non-current portion of receivables 24,777 13,982
Contract assets 10,589 5,294
Total trade and other receivables, current portion 116,843 104,822
Gaming operations    
Trade and other receivables, net    
Trade receivables, net 83,329 77,053
Non-current portion of receivables 2,023 1,348
FinTech    
Trade and other receivables, net    
Trade receivables, net 32,118 21,504
Non-current portion of receivables $ 12,165 $ 7,340
v3.22.2.2
TRADE AND OTHER RECEIVABLES - Activity in Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning allowance for credit losses $ (5,161) $ (3,689)
Provision (7,286) (5,499)
Charge-offs and recoveries 6,470 4,400
Ending allowance for credit losses $ (5,977) $ (4,788)
v3.22.2.2
INVENTORY (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Inventory    
Component parts, net of reserves of $2,582 and $2,422 at September 30, 2022 and December 31, 2021, respectively $ 40,063 $ 22,490
Work-in-progress 5,019 554
Finished goods 10,808 6,189
Total inventory 55,890 29,233
Component parts, reserves $ 2,582 $ 2,422
v3.22.2.2
PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Prepaid expenses and other current assets    
Prepaid expenses $ 22,632 $ 14,389
Deposits 13,353 7,709
Restricted cash 819 1,616
Other 2,205 3,585
Total prepaid expenses and other current assets 39,009 27,299
Other assets    
Operating lease ROU assets 18,426 12,692
Prepaid expenses and deposits 8,531 4,789
Debt issuance costs of revolving credit facility 1,473 1,760
Other 227 418
Total other assets $ 28,657 $ 19,659
v3.22.2.2
PROPERTY AND EQUIPMENT - Schedule of Components of Property, Equipment and Leased Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Property, Plant and Equipment [Line Items]          
Cost $ 405,536   $ 405,536   $ 362,919
Accumulated Depreciation 274,991   274,991   242,926
Net Book Value 130,545   130,545   119,993
Depreciation 17,444 $ 14,463 48,342 $ 46,571  
FinTech          
Property, Plant and Equipment [Line Items]          
Depreciation 2,438 $ 1,968 7,021 $ 5,449  
Rental pool - deployed          
Property, Plant and Equipment [Line Items]          
Cost 273,117   273,117   248,958
Accumulated Depreciation 181,886   181,886   166,075
Net Book Value 91,231   $ 91,231   82,883
Rental pool - deployed | Minimum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years)     2 years    
Rental pool - deployed | Maximum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years)     4 years    
Rental pool - undeployed          
Property, Plant and Equipment [Line Items]          
Cost 30,833   $ 30,833   23,284
Accumulated Depreciation 24,456   24,456   18,285
Net Book Value 6,377   $ 6,377   4,999
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 51,539   $ 51,539   45,277
Accumulated Depreciation 33,062   33,062   28,075
Net Book Value 18,477   18,477   17,202
Machinery, office, and other equipment | FinTech          
Property, Plant and Equipment [Line Items]          
Cost 36,820   36,820   32,802
Accumulated Depreciation 25,267   25,267   21,257
Net Book Value 11,553   $ 11,553   11,545
Machinery, office, and other equipment | Minimum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years)     1 year    
Machinery, office, and other equipment | Minimum | FinTech          
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    
Machinery, office, and other equipment | Maximum | FinTech          
Property, Plant and Equipment [Line Items]          
Useful Life (Years)     5 years    
Leasehold and building improvements          
Property, Plant and Equipment [Line Items]          
Cost 13,227   $ 13,227   12,598
Accumulated Depreciation 10,320   10,320   9,234
Net Book Value $ 2,907   $ 2,907   $ 3,364
v3.22.2.2
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]          
Goodwill $ 707,214,000   $ 707,214,000   $ 682,663,000
Impairment of goodwill 0 $ 0 0 $ 0  
Amortization of intangible assets 15,300,000 14,600,000 43,600,000 43,700,000  
Impairment of intangible assets $ 0 $ 0 $ 0 $ 0  
v3.22.2.2
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Cost $ 788,310 $ 724,931
Accumulated Amortization 557,382 510,337
Net Book Value 230,928 214,594
Contract rights under placement fee agreements    
Finite-Lived Intangible Assets [Line Items]    
Cost 57,946 58,837
Accumulated Amortization 10,042 4,237
Net Book Value $ 47,904 54,600
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 $ 324,598 303,238
Accumulated Amortization 226,164 206,273
Net Book Value $ 98,434 96,965
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 $ 383,716 342,309
Accumulated Amortization 301,164 280,412
Net Book Value $ 82,552 61,897
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, trade names and other    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 22,050 20,547
Accumulated Amortization 20,012 19,415
Net Book Value $ 2,038 $ 1,132
Patents, trade names and other | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 2 years  
Patents, trade names and other | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 18 years  
v3.22.2.2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Dec. 31, 2020
Payables and Accruals [Abstract]        
Customer commissions payable $ 63,012 $ 57,515    
Contract liabilities 44,460 36,238 $ 36,503 $ 26,980
Accounts payable - trade 38,336 25,453    
Payroll and related expenses 25,646 29,125    
Contingent consideration and acquisition-related liabilities 10,712 0    
Financial access processing and related expenses 6,782 3,619    
Operating lease liabilities 6,436 5,663    
Accrued interest 4,316 9,273    
Accrued taxes 3,821 2,756    
Other 6,245 4,291    
Total accounts payable and accrued expenses $ 209,766 $ 173,933    
v3.22.2.2
LONG-TERM DEBT - Schedule of Outstanding Indebtedness (Details) - USD ($)
 9 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Aug. 03, 2021
Dec. 31, 2019
Debt Instrument [Line Items]        
Total debt $ 994,000,000 $ 998,500,000    
Debt issuance costs and discount (15,123,000) (16,975,000)    
Total debt after debt issuance costs and discount 978,877,000 981,525,000    
Current portion of long-term debt (6,000,000) (6,000,000)    
Total long-term debt, net of current portion 972,877,000 975,525,000    
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 $ 594,000,000 598,500,000    
Senior secured notes | Senior secured notes | New Revolver        
Debt Instrument [Line Items]        
Total debt 594,000,000 598,500,000    
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   $ 400,000,000
Interest rate 5.00%      
v3.22.2.2
LONG-TERM DEBT - Narrative (Details)
 3 Months Ended 9 Months Ended
Aug. 03, 2021
USD ($)
Sep. 30, 2022
USD ($)
Sep. 30, 2022
USD ($)
Dec. 31, 2021
USD ($)
Senior unsecured notes | FinTech Segment        
Debt Instrument [Line Items]        
Principal amount of debt   $ 400,000,000 $ 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%      
Credit Agreement Dated May 9, 2017        
Debt Instrument [Line Items]        
Leverage ratio, maximum   4.25 4.25  
2017 Unsecured Notes | Senior unsecured notes        
Debt Instrument [Line Items]        
Interest rate   5.00% 5.00%  
Senior secured notes | New Revolver        
Debt Instrument [Line Items]        
Debt term 7 years      
Principal amount of debt $ 600,000,000 $ 600,000,000 $ 600,000,000 $ 600,000,000
Percentage of par amount issued 0.9975      
Senior secured notes | New Revolver | 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      
Periodic payment, percentage of principal     0.0025  
Period for prepayment premium from closing date     6 months  
Prepayment penalty, percentage of principal amount repaid     1.00%  
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   4.76% 3.66%  
v3.22.2.2
STOCKHOLDERS' EQUITY (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Jun. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
May 04, 2022
Dec. 31, 2021
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) 89,972,000     89,972,000     91,313,000
Treasury stock (in shares) 29,286,000     29,286,000     25,683,000
Treasury stock acquired (in shares) 900,000   0 2,900,000 0    
Treasury stock acquired (in usd per share) $ 17.29     $ 16.87      
Repurchase of shares $ 16,015,000 $ 33,336,000   $ 49,400,000      
Stock repurchase program, remaining authorized repurchase amount $ 100,600,000     $ 100,600,000      
v3.22.2.2
WEIGHTED AVERAGE SHARES OF COMMON STOCK - Schedule of Weighted Average Number of Shares (Details) - shares
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Weighted average shares        
Weighted average number of common shares outstanding - basic (in shares) 90,014,000 90,322,000 91,039,000 88,688,000
Potential dilution from equity awards (in shares) 6,422,000 11,037,000 7,267,000 10,893,000
Weighted average number of common shares outstanding - diluted (in shares) 96,436,000 101,359,000 98,306,000 99,581,000
Anti-dilutive equity awards excluded from computation of earnings per share (in shares) 200,000 0 100,000 0
v3.22.2.2
SHARE-BASED COMPENSATION - Summary of Award Activity (Details) - shares
shares in Thousands
 9 Months Ended
Sep. 30, 2022
Stock Options  
Stock Options  
Outstanding (in shares) 7,073
Granted (in shares) 81
Exercised options (in shares) (284)
Canceled or forfeited (in shares) (25)
Outstanding (in shares) 6,845
Restricted Stock Units  
Restricted Stock Units  
Outstanding (in shares) 3,540
Granted (in shares) 1,276
Vested (in shares) (1,978)
Canceled or forfeited (in shares) (34)
Outstanding (in shares) 2,804
Common Stock  
Restricted Stock Units  
Number of shares available for grant (in shares) 3,700
v3.22.2.2
INCOME TAXES (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Tax Disclosure [Abstract]        
Effective income tax rate 26.00% (5.00%) 24.20% 2.00%
Statutory federal rate     21.00% 21.00%
Unrecognized tax benefits $ 2.2   $ 2.2  
v3.22.2.2
SEGMENT INFORMATION - Revenues, Operating Income, and Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Revenues          
Total revenues $ 204,318 $ 168,302 $ 577,156 $ 479,997  
Costs and expenses          
Operating expenses 56,354 47,121 161,230 133,320  
Research and development 16,803 9,598 43,386 26,799  
Depreciation 17,444 14,463 48,342 46,571  
Amortization 15,303 14,596 43,582 43,680  
Total costs and expenses 149,700 113,229 415,398 330,341  
Operating income 54,618 55,073 161,758 149,656  
Total assets          
Total assets 1,669,523   1,669,523   $ 1,635,650
Games          
Revenues          
Total revenues 112,520 95,833 323,203 271,321  
Costs and expenses          
Cost of revenues [1] 29,102 19,178 81,395 54,834  
Operating expenses 19,860 16,711 57,886 48,871  
Research and development 11,298 6,445 28,395 17,966  
Depreciation 15,006 12,495 41,321 41,122  
Amortization 11,472 10,805 31,744 32,464  
Total costs and expenses 86,738 65,634 240,741 195,257  
Operating income 25,782 30,199 82,462 76,064  
Total assets          
Total assets 909,973   909,973   913,880
Games | Gaming operations          
Revenues          
Total revenues 74,979 71,580 219,311 202,941  
Costs and expenses          
Cost of revenues [1] 6,557 5,675 18,674 15,776  
Games | Gaming equipment and systems          
Revenues          
Total revenues 37,500 24,220 103,766 68,298  
Costs and expenses          
Cost of revenues [1] 22,545 13,503 62,721 39,058  
Games | Gaming other          
Revenues          
Total revenues 41 33 126 82  
FinTech          
Revenues          
Total revenues 91,798 72,469 253,953 208,676  
Costs and expenses          
Cost of revenues [1] 14,694 8,273 37,463 25,137  
Operating expenses 36,494 30,410 103,344 84,449  
Research and development 5,505 3,153 14,991 8,833  
Depreciation 2,438 1,968 7,021 5,449  
Amortization 3,831 3,791 11,838 11,216  
Total costs and expenses 62,962 47,595 174,657 135,084  
Operating income 28,836 24,874 79,296 73,592  
Total assets          
Total assets 759,550   759,550   $ 721,770
FinTech | Financial access services          
Revenues          
Total revenues 53,296 46,421 154,051 129,973  
Costs and expenses          
Cost of revenues [1] 2,760 1,830 7,405 4,863  
FinTech | Software and other          
Revenues          
Total revenues 22,192 17,024 59,056 49,874  
Costs and expenses          
Cost of revenues [1] 1,163 1,063 2,984 3,196  
FinTech | Hardware          
Revenues          
Total revenues 16,310 9,024 40,846 28,829  
Costs and expenses          
Cost of revenues [1] $ 10,771 $ 5,380 $ 27,074 $ 17,078  
[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)
v3.22.2.2
SEGMENT INFORMATION - Major Customers (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2021
Five largest customers | Customer risk | Revenue from Contract with Customer      
Revenue, Major Customer [Line Items]      
Concentration risk, percentage 14.00% 16.00% 16.00%
v3.22.2.2
SUBSEQUENT EVENTS (Details) - Subsequent Event
$ in Millions
Oct. 17, 2022
USD ($)
Subsequent Event [Line Items]  
Payment for asset acquisition $ 18
Minimum  
Subsequent Event [Line Items]  
Total cash consideration 2
Maximum  
Subsequent Event [Line Items]  
Total cash consideration $ 6