EVERI HOLDINGS INC., 10-Q filed on 8/4/2020
Quarterly Report
v3.20.2
Cover - shares
6 Months Ended
Jun. 30, 2020
Jul. 29, 2020
Cover Page [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2020  
Document Transition Report false  
Entity File Number 001-32622  
Entity Registrant Name EVERI HOLDINGS INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-0723270  
Entity Address, Address Line One 7250 S. Tenaya Way, Suite 100  
Entity Address, City or Town Las Vegas  
Entity Address, State or Province NV  
Entity Address, Postal Zip Code 89113  
City Area Code 800  
Local Phone Number 833-7110  
Title of 12(b) Security Common Stock, $0.001 par value  
Trading Symbol EVRI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   85,450,998
Entity Central Index Key 0001318568  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q2  
v3.20.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Revenues        
Total revenues $ 38,715 $ 129,706 $ 152,024 $ 253,481
Costs and expenses        
Operating expenses 41,603 39,167 80,501 73,815
Research and development 5,193 6,672 13,924 14,203
Depreciation 16,294 15,258 32,537 30,047
Amortization 19,295 17,690 38,619 33,987
Total costs and expenses 91,442 104,827 194,326 202,730
Operating (loss) income (52,727) 24,879 (42,302) 50,751
Other expenses        
Interest expense, net of interest income 19,822 20,433 37,321 40,833
Loss on extinguishment of debt 80 0 7,457 0
Total other expenses 19,902 20,433 44,778 40,833
(Loss) income before income tax (72,629) 4,446 (87,080) 9,918
Income tax benefit (4,148) (1,040) (5,145) (1,428)
Net (loss) income (68,481) 5,486 (81,935) 11,346
Foreign currency translation, net of tax 304 (35) (1,654) 469
Comprehensive (loss) income $ (68,177) $ 5,451 $ (83,589) $ 11,815
(Loss) earnings per share        
Basic (in dollars per share) $ (0.80) $ 0.08 $ (0.97) $ 0.16
Diluted (in dollars per share) $ (0.80) $ 0.07 $ (0.97) $ 0.15
Weighted average common shares outstanding        
Basic (in shares) 85,122 71,477 84,873 70,909
Diluted (in shares) 85,122 79,158 84,873 77,211
Games        
Revenues        
Total revenues $ 20,853 $ 69,379 $ 78,143 $ 136,806
Cost of revenues 6,208 [1] 17,505 [1] 17,577 34,158
Costs and expenses        
Operating expenses 22,714 15,964 37,519 30,631
Research and development 3,620 5,265 9,816 11,112
Depreciation 14,844 13,489 29,572 26,863
Amortization 15,315 14,604 30,900 28,386
Total costs and expenses 62,701 66,827 125,384 131,150
Operating (loss) income (41,848) 2,552 (47,241) 5,656
Games | Gaming operations        
Revenues        
Total revenues 13,859 45,576 59,545 89,862
Cost of revenues 1,681 [1] 3,726 [1] 6,226 7,850
Games | Gaming equipment and systems        
Revenues        
Total revenues 6,983 23,412 18,566 46,499
Cost of revenues 4,071 [1] 13,432 [1] 10,895 25,961
Games | Gaming other        
Revenues        
Total revenues 11 391 32 445
Cost of revenues 456 347 456 347
FinTech        
Revenues        
Total revenues 17,862 60,327 73,881 116,675
Cost of revenues 2,849 [1] 8,535 [1] 11,168 16,520
Costs and expenses        
Operating expenses 18,889 23,203 42,981 43,184
Research and development 1,573 1,407 4,108 3,091
Depreciation 1,450 1,769 2,965 3,184
Amortization 3,980 3,086 7,719 5,601
Total costs and expenses 28,741 38,000 68,941 71,580
Operating (loss) income (10,879) 22,327 4,940 45,095
FinTech | Cash access services        
Revenues        
Total revenues 10,034 39,696 47,007 80,528
Cost of revenues 511 [1] 2,968 [1] 4,066 5,665
FinTech | Equipment        
Revenues        
Total revenues 3,404 7,835 9,756 14,863
Cost of revenues 2,014 [1] 4,597 [1] 5,904 8,927
FinTech | Information services and other        
Revenues        
Total revenues 4,424 12,796 17,118 21,284
Cost of revenues $ 324 [1] $ 970 [1] $ 1,198 $ 1,928
[1] (1) Exclusive of depreciation and amortization.
v3.20.2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Current assets    
Cash and cash equivalents $ 257,430 $ 289,870
Settlement receivables 33,833 70,282
Trade and other receivables, net of allowances for credit losses of $2,605 and $5,786 at June 30, 2020 and December 31, 2019, respectively 70,733 87,910
Inventory 33,840 26,574
Prepaid expenses and other current assets 19,440 27,896
Total current assets 415,276 502,532
Non-current assets    
Property and equipment, net 112,996 128,869
Goodwill 681,531 681,635
Other intangible assets, net 242,015 279,187
Other receivables, net 16,096 16,661
Other assets 16,186 20,339
Total non-current assets 1,068,824 1,126,691
Total assets 1,484,100 1,629,223
Current liabilities    
Settlement liabilities 158,075 234,087
Accounts payable and accrued expenses 147,639 173,103
Current portion of long-term debt 1,250 0
Total current liabilities 306,964 407,190
Non-current liabilities    
Deferred tax liability, net 21,009 26,401
Total long-term debt, net of current portion 1,161,380 1,108,078
Other accrued expenses and liabilities 13,509 33,566
Total non-current liabilities 1,195,898 1,168,045
Total liabilities 1,502,862 1,575,235
Commitments and contingencies (Note 13)
Stockholders’ (deficit) equity    
Convertible preferred stock, $0.001 par value, 50,000 shares authorized and no shares outstanding at June 30, 2020 and December 31, 2019, respectively 0 0
Common stock, $0.001 par value, 500,000 shares authorized and 110,534 and 85,426 shares issued and outstanding at June 30, 2020, respectively, and 109,493 and 84,497 shares issued and outstanding at December 31, 2019, respectively 111 109
Additional paid-in capital 456,588 445,162
Accumulated deficit (294,875) (212,940)
Accumulated other comprehensive loss (2,473) (819)
Treasury stock, at cost, 25,108 and 24,996 shares at June 30, 2020 and December 31, 2019, respectively (178,113) (177,524)
Total stockholders’ (deficit) equity (18,762) 53,988
Total liabilities and stockholders’ equity $ 1,484,100 $ 1,629,223
v3.20.2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Current assets    
Allowances for doubtful accounts $ 2,605 $ 5,786
Stockholders’ (deficit) 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) 110,534,000 109,493,000
Common stock outstanding (in shares) 85,426,000 84,497,000
Treasury stock (in shares) 25,108,000 24,996,000
v3.20.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities    
Net (loss) income $ (81,935) $ 11,346
Adjustments to reconcile net (loss) income to cash used in operating activities:    
Depreciation 32,537 30,047
Amortization 38,619 33,987
Non-cash lease expense 2,195 2,018
Amortization of financing costs and discounts 1,941 1,789
Loss on sale or disposal of assets 101 1,121
Accretion of contract rights 3,170 4,318
Provision for credit losses 4,981 5,912
Deferred income taxes (5,392) (1,748)
Reserve for inventory obsolescence 1,021 670
Write-down of assets 11,033 843
Loss on extinguishment of debt 7,457 0
Stock-based compensation 7,123 4,160
Other non-cash items 456 0
Changes in operating assets and liabilities:    
Settlement receivables 35,998 (161,117)
Trade and other receivables 12,202 (16,497)
Inventory (9,880) (4,570)
Other assets 1,437 (20,518)
Settlement liabilities (75,566) (3,478)
Other liabilities (25,908) 24,060
Net cash used in operating activities (38,410) (87,657)
Cash flows from investing activities    
Capital expenditures (30,134) (45,683)
Acquisitions, net of cash acquired (15,000) (20,000)
Proceeds from sale of property and equipment 86 50
Placement fee agreements (875) (11,648)
Net cash used in investing activities (45,923) (77,281)
Cash flows from financing activities    
Proceeds from secured term loan 125,000 0
Borrowings under revolving credit facility 35,000 0
Repayments of unsecured notes (89,619) 0
Repayments of credit facility (13,500) (17,700)
Fees associated with debt transactions (11,128) 0
Proceeds from exercise of stock options 2,113 9,450
Treasury stock (589) (980)
Net cash provided by (used in) financing activities 47,277 (9,230)
Effect of exchange rates on cash and cash equivalents (1,732) 714
Cash, cash equivalents and restricted cash    
Net decrease for the period (38,788) (173,454)
Balance, beginning of the period 296,610 299,181
Balance, end of the period 257,822 125,727
Supplemental cash disclosures    
Cash paid for interest 32,956 39,549
Cash (refunded) paid for income tax, net (52) 293
Supplemental non-cash disclosures    
Accrued and unpaid capital expenditures 2,288 3,321
Accrued and unpaid placement fees added during the year 0 585
Accrued and unpaid liabilities for acquisitions added during the year 0 27,556
Transfer of leased gaming equipment to inventory 5,578 7,637
Operating lease right-of-use assets obtained in exchange for new lease obligations $ 860 $ 15,132
v3.20.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Deficit
Accumulated Other Comprehensive Loss
Treasury Stock
Balance, beginning of period (in shares) at Dec. 31, 2018   95,100        
Balance, beginning of period at Dec. 31, 2018 $ (108,895) $ 95 $ 298,929 $ (229,457) $ (1,998) $ (176,464)
Increase (Decrease) in Stockholders' Equity            
Net income 5,860     5,860    
Foreign currency translation 504       504  
Stock-based compensation expense 1,773   1,773      
Exercise of options (in shares)   864        
Exercise of options 4,971 $ 1 4,970      
Restricted shares (in shares)   2        
Restricted share vesting and withholding (15)         (15)
Balance, end of period (in shares) at Mar. 31, 2019   95,966        
Balance, end of period at Mar. 31, 2019 (95,802) $ 96 305,672 (223,597) (1,494) (176,479)
Balance, beginning of period (in shares) at Dec. 31, 2018   95,100        
Balance, beginning of period at Dec. 31, 2018 (108,895) $ 95 298,929 (229,457) (1,998) (176,464)
Increase (Decrease) in Stockholders' Equity            
Net income 11,346          
Balance, end of period (in shares) at Jun. 30, 2019   97,005        
Balance, end of period at Jun. 30, 2019 (84,437) $ 97 312,550 (218,111) (1,529) (177,444)
Balance, beginning of period (in shares) at Mar. 31, 2019   95,966        
Balance, beginning of period at Mar. 31, 2019 (95,802) $ 96 305,672 (223,597) (1,494) (176,479)
Increase (Decrease) in Stockholders' Equity            
Net income 5,486     5,486    
Foreign currency translation (35)       (35)  
Stock-based compensation expense 2,387   2,387      
Exercise of options (in shares)   764        
Exercise of options 4,492 $ 1 4,491      
Restricted shares (in shares)   275        
Restricted share vesting and withholding (965)         (965)
Balance, end of period (in shares) at Jun. 30, 2019   97,005        
Balance, end of period at Jun. 30, 2019 $ (84,437) $ 97 312,550 (218,111) (1,529) (177,444)
Balance, beginning of period (in shares) at Dec. 31, 2019 84,497 109,493        
Balance, beginning of period at Dec. 31, 2019 $ 53,988 $ 109 445,162 (212,940) (819) (177,524)
Increase (Decrease) in Stockholders' Equity            
Net income (13,454)     (13,454)    
Foreign currency translation (1,958)       (1,958)  
Stock-based compensation expense 4,173   4,173      
Exercise of options (in shares)   298        
Exercise of options 1,642 $ 1 1,641      
Restricted shares (in shares)   15        
Restricted share vesting and withholding (42)         (42)
Balance, end of period (in shares) at Mar. 31, 2020   109,806        
Balance, end of period at Mar. 31, 2020 $ 44,349 $ 110 450,976 (226,394) (2,777) (177,566)
Balance, beginning of period (in shares) at Dec. 31, 2019 84,497 109,493        
Balance, beginning of period at Dec. 31, 2019 $ 53,988 $ 109 445,162 (212,940) (819) (177,524)
Increase (Decrease) in Stockholders' Equity            
Net income $ (81,935)          
Balance, end of period (in shares) at Jun. 30, 2020 85,426 110,534        
Balance, end of period at Jun. 30, 2020 $ (18,762) $ 111 456,588 (294,875) (2,473) (178,113)
Balance, beginning of period (in shares) at Mar. 31, 2020   109,806        
Balance, beginning of period at Mar. 31, 2020 44,349 $ 110 450,976 (226,394) (2,777) (177,566)
Increase (Decrease) in Stockholders' Equity            
Net income (68,481)     (68,481)    
Foreign currency translation 304       304  
Stock-based compensation expense 4,638   4,638      
Issuance of warrants 502   502      
Exercise of options (in shares)   149        
Exercise of options 473 $ 1 472      
Restricted shares (in shares)   579        
Restricted share vesting and withholding $ (547)         (547)
Balance, end of period (in shares) at Jun. 30, 2020 85,426 110,534        
Balance, end of period at Jun. 30, 2020 $ (18,762) $ 111 $ 456,588 $ (294,875) $ (2,473) $ (178,113)
v3.20.2
BUSINESS
6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BUSINESS BUSINESS
Everi Holdings Inc. (“Everi Holdings,” or “Everi”) is a holding company, the assets of which are the issued and outstanding shares of capital stock of each of Everi Payments Inc. (“Everi FinTech” or “FinTech”) and Everi Games Holding Inc., which owns all of the issued and outstanding shares of capital stock of Everi Games Inc. (“Everi Games” or “Games”). Unless otherwise indicated, the terms the “Company,” “we,” “us,” and “our” refer to Everi Holdings together with its consolidated subsidiaries.
Everi is a leading supplier of entertainment and technology solutions for the casino, digital online, and gaming industry. With a focus on both customers and players, Everi develops, sells, and leases games and gaming machines, gaming systems and services, and is an innovator and provider of core financial products and services, self-service player loyalty tools and promotion management software, and intelligence and regulatory compliance solutions. Everi’s mission is to provide casino operators with games that facilitate memorable player experiences, offer secure financial transactions for casinos and their patrons, and deliver software applications and self-service tools to improve casino operations’ efficiencies and fulfill regulatory compliance requirements.
Everi Holdings reports its results of operations based on two operating segments: Games and FinTech.
Everi Games provides gaming operators with gaming technology products and services, including: (a) gaming machines, primarily comprising Class II and Class III slot machines placed under participation or fixed-fee lease arrangements or sold to casino customers; (b) 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 (c) business-to-business (“B2B”) and business-to-consumer (“B2C”) digital online gaming activities.
Everi FinTech provides gaming operators with financial technology products and services, including: (a) services and equipment that facilitate casino patrons’ self-service access to cash at gaming facilities via Automated Teller Machine (“ATM”) cash withdrawals, credit card cash access transactions and point-of-sale (“POS”) debit card purchase and cash access transactions; (b) check warranty services; (c) self-service player loyalty enrollment and marketing equipment, including promotion management software and tools; (d) software and services that improve credit decision making, automate cashier operations, and enhance patron marketing activities for gaming establishments; (e) equipment that provides cash access and other cash handling efficiency-related services; and (f) compliance, audit, and data solutions.
Impact of COVID-19 Pandemic
The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains, lowered equity market valuations, created significant volatility in the financial markets, increased unemployment levels, caused temporary, and in certain cases, closures of many businesses. The gaming industry was not immune to these factors as our casino customers closed their gaming establishments, and as a result, our operations have experienced significant disruptions. At the immediate onset of the COVID-19 pandemic, we were affected by various measures, including, but not limited to: the institution of social distancing and sheltering-in-place requirements in many states and communities, which significantly impacted demand for our products and services, and resulted in office closures, the furlough of a majority of our employees, the implementation of temporary base salary reductions for our employees and the implementation of a work-from-home policy.
During the second quarter of 2020, businesses began to adapt to social-distancing measures and various phases of reopening pursuant to government-mandated guidelines. As gaming establishments reopened, a number of casino operators initially experienced an elevated level of activity as compared to what was originally anticipated. This initial demand that occurred during the second quarter of 2020 has recently flattened to slightly below pre-COVID levels. It is unclear if, and when, volume will return to pre-COVID levels; however, we continue to monitor the impacts of COVID-19 and make adjustments accordingly.
With our gaming customers reopening casino properties, we have recalled a majority of our furloughed employees on primarily a work-from-home basis consistent with our remaining employees and reversed a significant portion of their temporary pay reductions as our revenues began to return toward the end of the second quarter of 2020. In addition, a number of casino
properties have closed for a second time, and if this continues to occur, it may have an adverse impact on our revenue expectations in the near-term.
In parallel, in connection with the uncertainty facing our customers as a result of COVID-19, we have evaluated our business strategies and implemented measures to reduce the size of our ongoing operating costs. As a result of this evaluation, we permanently reduced our employee base, with most of the departures resulting from our furloughed employees, to accommodate the current and future operating needs of our customers and our business.
The impact of the COVID-19 pandemic also exacerbates the risks disclosed in our Annual Report, including, but not limited to: our ability to comply with the terms of our indebtedness, our ability to generate revenues, earn profits and maintain adequate liquidity, our ability to service existing and attract new customers, maintain our overall competitiveness in the market, the potential for significant fluctuations in demand for our services, overall trends in the gaming industry impacting our business, as well as potential volatility in our stock price, among other consequences such as cybersecurity exposure.
The impact of the COVID-19 pandemic on the Company’s operations, and significant and sustained decline in our stock price, qualified as a triggering event necessitating the evaluation of our long-lived assets and goodwill for indicators of impairment. We conducted a goodwill quantitative impairment assessment as of May 31, 2020. See “Note 9 — Property and Equipment” and “Note 10 — Goodwill and Other Intangible Assets.”
Results of Operations and Liquidity
To date, our operations have experienced revenue reductions and significant disruptions as a direct consequence of the circumstances surrounding the COVID-19 pandemic. This had a material adverse impact on our overall results of operations and financial condition for the current reporting period. As such, we have implemented a range of actions to maintain balance sheet flexibility and preserve liquidity as a result of the business disruption caused by the rapid nationwide spread of COVID-19, including, but not limited to:
At the onset of COVID-19 pandemic:
we completed the full draw down of our available capacity of $35.0 million under the Revolving Credit Facility in order to improve our liquidity and preserve financial flexibility in light of the uncertainty in our industry and the global economy as a result of COVID-19 (as discussed and defined in “Note 12 — Long-Term Debt”);
we entered into a fourth amendment (the “Fourth Amendment”) to our existing Credit Agreement (as defined in “Note 12 — Long-Term Debt”), which among other things, amended our debt covenants to provide relief with respect to our senior secured leverage ratio (as discussed and defined in “Note 12 — Long-term Debt”);
we also entered into a new credit agreement, which provides for a $125.0 million senior secured term loan, which is secured on a pari passu basis with the loans under our existing Credit Agreement. The entire amount was borrowed upon closing (as discussed and defined in “Note 12 — Long-term Debt”);
our executive officers elected to accept significant reductions to their compensation during the pendency of the COVID-19 pandemic in order to better position the Company to withstand the challenging conditions that have caused global and domestic disruption in the current economic environment;
our independent members of the Board of Directors of the Company elected to forgo their quarterly cash compensation for Board and related committee services;
we furloughed a majority of our staff;
we reduced the salaries of our employee-base from approximately 15% to 70%;
we suspended certain employee benefits, such as providing a Company match on 401(k) contributions;
we implemented a remote working environment;
we canceled or delayed material capital expenditures;
we suspended our share repurchases under our previously authorized repurchase program; and
As of the end of the second quarter of 2020:
we have implemented a safe workplace return policy for those of our employees who return to our facilities;
we have since returned most of our furloughed employees to work;
we have since restored most of the base compensation to our employee-base;
we completed a reduction-in-force and incurred severance costs, among other expenses, of approximately $2.7 million;
we recorded a write-down of assets of approximately $11.0 million, of which $9.2 million and $1.8 million related to our Games and Fintech businesses, respectively, for certain of our trade receivables, inventory, prepaid expenses and other assets, fixed assets and other intangible assets that were not expected to be recoverable. This charge was reflected in Operating Expenses in our Statements of Operations. While we are unable to determine the nature, or amount, of further write-down charges, it is possible that we may record additional amounts to the extent we experience a decline in operations and financial performance in the future;
we have since returned a portion of the cash compensation to our Board of Directors; and
we have since returned a portion of the base compensation to our executives.
Government Relief
In late March 2020, the U.S. government enacted the Coronavirus Aid Relief and Economic Security Act (the “CARES Act”) in response to the COVID-19 pandemic. We have taken advantage of the following components contained within the CARES Act:
Employee Retention Payroll Tax Credit: We are applying a credit against payroll taxes for 50% of eligible employee wages paid or incurred from March 13, 2020 to December 31, 2020. This employee retention payroll tax credit would be provided for as much as $10,000 of qualifying wages for each eligible employee, including health benefits;
Employer Social Security Tax Payment Deferral: We are deferring payment of the employer portion of the social security taxes due on remaining payments and from enactment of the CARES Act through December 31, 2020, with 50% due by December 31, 2021 and 50% due by December 31, 2022; and
Alternative Minimum Tax (“AMT”) Credit Refund: We are applying for a refund of our AMT tax credits as the CARES Act affords us the ability to accelerate the recovery of such credits.
v3.20.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
Our unaudited condensed consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Some of the information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. The results for the three and six months ended June 30, 2020 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 2019 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 adjust it, 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 cash collections differs from when revenue is recognized due to contracts containing specific performance obligations that are required to be met prior to a customer being invoiced. We generally record contract liabilities when cash is collected in advance of us satisfying performance obligations, including those that are satisfied over a period of time. Balances of our contract assets and contract liabilities may fluctuate due to timing of cash collections.
The following table summarizes our contract assets and contract liabilities arising from contracts with customers:
Six Months Ended June 30,
20202019
Contract assets(1)
Balance at January 1 — current$8,634  $6,821  
Balance at January 1 — non-current6,774  4,489  
Total
15,408  11,310  
Balance at June 30 - current8,392  7,785  
Balance at June 30 - non-current7,754  5,618  
Total
16,146  13,403  
         Increase $738  $2,093  
Contract liabilities(2)
Balance at January 1 — current$28,510  $14,661  
Balance at January 1 — non-current354  809  
Total
28,864  15,470  
Balance at June 30 - current39,318  29,544  
Balance at June 30 - non-current103  484  
Total
39,421  30,028  
Increase
$10,557  $14,558  
(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, net 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 $17.0 million and $9.1 million in revenue that was included in the beginning contract liability balance during the six months ended June 30, 2020 and 2019, respectively.
Games Revenues
Our products and services include electronic gaming devices, such as Native American Class II offerings and other electronic bingo products, Class III slot machine offerings, VLTs, B2B and B2C digital online gaming activities, accounting and central determinant systems, and other back office systems. We conduct our Games segment business based on results generated from the following major revenue streams: (a) Gaming Operations; (b) Gaming Equipment and Systems; and (c) 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 $10.4 million and $44.4 million for the three and six months ended June 30, 2020, respectively and $33.8 million and $67.6 million for the three and six months ended June 30, 2019, respectively.
FinTech Revenues
Our FinTech products and services include solutions that we offer to gaming establishments to provide their patrons with cash access-related services, self-service player loyalty and marketing tools, and other information-related products and services. These solutions include: access to cash at gaming facilities via ATM cash withdrawals, credit card cash access transactions, and POS debit card purchase and cash access transactions; check warranty services; self-service ATMs and fully integrated kiosks and maintenance services; self-service player loyalty enrollment and marketing equipment, including promotion management software and tools; 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: (a) Cash Access Services; (b) Equipment; and (c) Information Services and Other.
Equipment revenues are derived from the sale of our cash access and loyalty kiosks and related equipment and are accounted for under ASC 606, unless such transactions meet the definition of a sales type or direct financing lease, which are accounted for under ASC 842. We did not have any new cash access kiosk and related equipment sales contracts accounted for under ASC 842 during the three and six months ended June 30, 2020. Sales contracts accounted for under ASC 842 were approximately $2.6 million for the three and six months ended June 30, 2019.
Restricted Cash
Our restricted cash primarily consists of: (a) funds held in connection with certain customer agreements; (b) deposits held in connection with a sponsorship agreement; (c) wide area progressive (“WAP”)-related restricted funds; and (d) Internet-related cash access activities. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows for the six months ended June 30, 2020.
Classification on our Balance Sheets
At June 30, 2020At December 31, 2019
Cash and cash equivalentsCash and cash equivalents$257,430  $289,870  
Restricted cash - currentPrepaid expenses and other current assets291  6,639  
Restricted cash - non-currentOther assets101  101  
Total
$257,822  $296,610  

Goodwill

Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. We test for impairment annually on a reporting unit basis, at the beginning of our fourth fiscal quarter and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The annual impairment test is completed using either: a qualitative “Step 0” assessment based on reviewing relevant events and circumstances; or a quantitative “Step 1” assessment, which determines the fair value of the reporting unit, using both an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether or not any impairment exists. To the extent the carrying amount of a reporting unit is less than its estimated fair value, an impairment charge is recorded.

The evaluation of impairment of goodwill requires the use of estimates about future operating results. Changes in forecasted operations can materially affect these estimates, which could materially affect our results of operations and financial condition. The estimates of expected future cash flows require significant judgment and are based on assumptions we determined to be
reasonable; however, they are unpredictable and inherently uncertain, including, estimates of future growth rates, operating margins and assumptions about the overall economic climate as well as the competitive environment within which we operate. There can be no assurance that our estimates and assumptions made for purposes of our impairment assessments as of the time of evaluation will prove to be accurate predictions of the future. If our assumptions regarding business plans, competitive environments, or anticipated growth rates are not correct, we may be required to record non-cash impairment charges in future periods, whether in connection with our normal review procedures periodically, or earlier, if an indicator of an impairment is present prior to such evaluation.

Our reporting units are identified as operating segments or one level below. Reporting units must: (a) engage in business activities from which they earn revenues and incur expenses; (b) 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 (c) have discrete financial information available. As of June 30, 2020, our reporting units included: (i) Games; (ii) Cash Access Services; (iii) Kiosk Sales and Services; (iv) Central Credit Services; (v) Compliance Sales and Services; and (vi) Player 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 the long-term accounts payable is estimated by discounting the total obligation using the appropriate interest rate. As of June 30, 2020 and December 31, 2019, the fair value of trade and loans receivable approximated the carrying value due to contractual terms generally being slightly over 12 months. The fair value of our borrowings is estimated based on various inputs to determine a market price, such as: market demand and supply, size of tranche, maturity, and similar instruments trading in more active markets. The estimated fair value and outstanding balances of our borrowings are as follows (in thousands):
 Level of HierarchyFair ValueOutstanding Balance
June 30, 2020   
Term loan2$697,180  $735,500  
Incremental term loan2$127,500  $125,000  
Revolving credit facility
2$33,177  $35,000  
Senior unsecured notes2$273,252  $285,381  
December 31, 2019   
Term loan2$753,494  $749,000  
Senior unsecured notes2$401,738  $375,000  
Our borrowings were reported at fair value using Level 2 inputs based on quoted market prices for these securities.
Reclassification of Prior Year Balances
Reclassifications were made to the prior-period Financial Statements to conform to the current period presentation where applicable.
Recent Accounting Guidance
Recently Adopted Accounting Guidance
StandardDescriptionDate of AdoptionEffect on Financial Statements
Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments
This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects lifetime expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.January 1, 2020
This guidance primarily impacts our trade and other receivables, including those related to revenues from contracts with customers that may contain contract assets with respect to performance obligations that are satisfied for which the customers have not yet been invoiced. We adopted this guidance using the modified retrospective method. The adoption of ASC 326 did not have a material effect on our Financial Statements and did not result in a cumulative-effect adjustment. Refer to “Note 6 — Trade and Other Receivables” for further discussion.
ASU No. 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract
This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license).January 1, 2020The adoption of this ASU did not have a material effect on our Financial Statements or on our disclosures.
ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting
This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting for contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”).
March 12, 2020The adoption of this ASU did not have a material effect on our Financial Statements or on our disclosures.
Recent Accounting Guidance Not Yet Adopted
StandardDescriptionDate of Planned AdoptionEffect on Financial Statements
ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
This ASU simplifies the accounting for income taxes by removing certain exceptions for investments, intraperiod allocations, and interim calculations, and adds guidance to reduce the complexity of applying Topic 740.January 1, 2021We are currently evaluating the impact of adopting this ASU on our Financial Statements and our disclosures; however, we do not expect the impact to be material.
We do not anticipate recently issued accounting guidance to have a significant impact on our Financial Statements as of June 30, 2020.
v3.20.2
LEASES
6 Months Ended
Jun. 30, 2020
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 (a) obtain substantially all of the economic benefit from the use of the asset; and (b) direct the use of the asset.
Operating lease right-of-use (“ROU”) assets and liabilities are recognized based on the present value of minimum lease payments over the expected lease term at commencement date. Lease expense is recognized on a straight-line basis over the expected lease term. Our lease arrangements have both lease and non-lease components, and we have elected the practical expedient to account for the lease and non-lease elements as a single lease.
Certain of our lease arrangements contain options to renew with terms that generally have the ability to extend the lease term to a range of approximately 1 to 10 years. The exercise of lease renewal options is generally at our sole discretion. The expected lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such option. The depreciable life of leased assets and leasehold improvements are limited by the expected term of such assets, unless there is a transfer of title or purchase option reasonably certain to be exercised.
Lessee
We enter into operating lease agreements for real estate purposes that generally consist of buildings for office space and warehouses for manufacturing purposes. Certain of our lease agreements consist of rental payments that are periodically adjusted for inflation. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. Our lease agreements do not generally provide explicit rates of interest; therefore, we use our incremental collateralized borrowing rate, which is based on a fully collateralized and fully amortizing loan with a maturity date the same as the length of the lease that is based on the information available at the commencement date to determine the present value of lease payments. Leases with an expected term of 12 months or less (short-term) are not accounted for on our Balance Sheets.
Supplemental balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2020At December 31, 2019
Assets
Operating lease ROU assetsOther assets, non-current$9,782  $12,257  
Liabilities(1)
Current operating lease liabilitiesAccounts payable and accrued expenses$6,167  $5,824  
Non-current operating lease liabilitiesOther accrued expenses and liabilities$7,362  $9,628  
(1) The amount of operating lease liabilities recorded on our Balance Sheets upon the adoption of ASC 842 on January 1, 2019 was approximately $18.0 million.
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Cash paid for long- and short-term leases$2,462  $2,029  $4,250  $3,717  
Operating lease ROU assets obtained in exchange for lease obligations(1)
$156  $—  $860  $15,132  
(2)
(1) The amounts exclude amortization for the period.
(2) The amount includes approximately $0.9 million of operating lease ROU assets obtained in exchange for new lease obligations entered into during the six months ended June 30, 2020. The amount includes approximately $14.1 million of operating lease ROU assets obtained in exchange for existing lease obligations due to the adoption of ASC 842 and $1.1 million of operating lease ROU assets obtained in exchange for new lease obligations entered into during the six months ended June 30, 2019. There were no material new operating lease ROU assets obtained in exchange for lease obligations during the three months ended June 30, 2020 or 2019.
Other information related to lease terms and discount rates is as follows:
At June 30, 2020At December 31, 2019
Weighted average remaining lease term (in years)2.402.96
Weighted average discount rate5.25 %5.25 %
Components of lease expense, which are included in operating expenses, are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Lease Cost:
Operating lease cost$1,365  $1,331  $2,737  $2,275  
Variable lease cost $468  $400  $912  $839  
Maturities of lease liabilities are summarized as follows as of June 30, 2020 (in thousands):
Year Ending December 31, Amount
2020 (excluding the six months ended June 30, 2020)$3,364  
20215,511  
20223,219  
20231,562  
2024564  
Thereafter328  
Total future minimum lease payments $14,548  
Amount representing interest 1,019  
Present value of future minimum lease payments$13,529  
Current operating lease obligations6,167  
Long-term lease obligations$7,362  
Lessor
We generate lease revenues primarily from our gaming operations activities, with a majority of our leases being month-to-month relationships. 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. The cost of property and equipment the Company is leasing to third-parties as of June 30, 2020 is approximately $199.6 million, which includes accumulated depreciation of approximately $118.8 million.
We did not have any new sales transactions that qualified for sales-type lease accounting treatment during the three and six months ended June 30, 2020. We generated lease revenue from sales-type leases in the FinTech segment in the amount of approximately $2.6 million for the three and six months ended June 30, 2019. Our interest income recognized in connection with sales-type leases executed in the prior periods is immaterial.
Supplemental balance sheet information related to our sales-type leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2020At December 31, 2019
Assets
Net investment in sales-type leases — currentTrade and other receivables, net$885  $874  
Net investment in sales-type leases — non-currentOther receivables$861  $1,288  
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 (a) obtain substantially all of the economic benefit from the use of the asset; and (b) direct the use of the asset.
Operating lease right-of-use (“ROU”) assets and liabilities are recognized based on the present value of minimum lease payments over the expected lease term at commencement date. Lease expense is recognized on a straight-line basis over the expected lease term. Our lease arrangements have both lease and non-lease components, and we have elected the practical expedient to account for the lease and non-lease elements as a single lease.
Certain of our lease arrangements contain options to renew with terms that generally have the ability to extend the lease term to a range of approximately 1 to 10 years. The exercise of lease renewal options is generally at our sole discretion. The expected lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such option. The depreciable life of leased assets and leasehold improvements are limited by the expected term of such assets, unless there is a transfer of title or purchase option reasonably certain to be exercised.
Lessee
We enter into operating lease agreements for real estate purposes that generally consist of buildings for office space and warehouses for manufacturing purposes. Certain of our lease agreements consist of rental payments that are periodically adjusted for inflation. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. Our lease agreements do not generally provide explicit rates of interest; therefore, we use our incremental collateralized borrowing rate, which is based on a fully collateralized and fully amortizing loan with a maturity date the same as the length of the lease that is based on the information available at the commencement date to determine the present value of lease payments. Leases with an expected term of 12 months or less (short-term) are not accounted for on our Balance Sheets.
Supplemental balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2020At December 31, 2019
Assets
Operating lease ROU assetsOther assets, non-current$9,782  $12,257  
Liabilities(1)
Current operating lease liabilitiesAccounts payable and accrued expenses$6,167  $5,824  
Non-current operating lease liabilitiesOther accrued expenses and liabilities$7,362  $9,628  
(1) The amount of operating lease liabilities recorded on our Balance Sheets upon the adoption of ASC 842 on January 1, 2019 was approximately $18.0 million.
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Cash paid for long- and short-term leases$2,462  $2,029  $4,250  $3,717  
Operating lease ROU assets obtained in exchange for lease obligations(1)
$156  $—  $860  $15,132  
(2)
(1) The amounts exclude amortization for the period.
(2) The amount includes approximately $0.9 million of operating lease ROU assets obtained in exchange for new lease obligations entered into during the six months ended June 30, 2020. The amount includes approximately $14.1 million of operating lease ROU assets obtained in exchange for existing lease obligations due to the adoption of ASC 842 and $1.1 million of operating lease ROU assets obtained in exchange for new lease obligations entered into during the six months ended June 30, 2019. There were no material new operating lease ROU assets obtained in exchange for lease obligations during the three months ended June 30, 2020 or 2019.
Other information related to lease terms and discount rates is as follows:
At June 30, 2020At December 31, 2019
Weighted average remaining lease term (in years)2.402.96
Weighted average discount rate5.25 %5.25 %
Components of lease expense, which are included in operating expenses, are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Lease Cost:
Operating lease cost$1,365  $1,331  $2,737  $2,275  
Variable lease cost $468  $400  $912  $839  
Maturities of lease liabilities are summarized as follows as of June 30, 2020 (in thousands):
Year Ending December 31, Amount
2020 (excluding the six months ended June 30, 2020)$3,364  
20215,511  
20223,219  
20231,562  
2024564  
Thereafter328  
Total future minimum lease payments $14,548  
Amount representing interest 1,019  
Present value of future minimum lease payments$13,529  
Current operating lease obligations6,167  
Long-term lease obligations$7,362  
Lessor
We generate lease revenues primarily from our gaming operations activities, with a majority of our leases being month-to-month relationships. 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. The cost of property and equipment the Company is leasing to third-parties as of June 30, 2020 is approximately $199.6 million, which includes accumulated depreciation of approximately $118.8 million.
We did not have any new sales transactions that qualified for sales-type lease accounting treatment during the three and six months ended June 30, 2020. We generated lease revenue from sales-type leases in the FinTech segment in the amount of approximately $2.6 million for the three and six months ended June 30, 2019. Our interest income recognized in connection with sales-type leases executed in the prior periods is immaterial.
Supplemental balance sheet information related to our sales-type leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2020At December 31, 2019
Assets
Net investment in sales-type leases — currentTrade and other receivables, net$885  $874  
Net investment in sales-type leases — non-currentOther receivables$861  $1,288  
v3.20.2
BUSINESS COMBINATIONS
6 Months Ended
Jun. 30, 2020
Business Combinations [Abstract]  
BUSINESS COMBINATIONS BUSINESS COMBINATIONS
We had no material acquisitions for the three and six months ended June 30, 2020.
Atrient, Inc.
On March 8, 2019, we acquired certain assets of Atrient, Inc. (“Atrient” or the “Seller”), a privately held company that develops and distributes hardware and software applications to gaming operators to enhance gaming patron loyalty, pursuant to an asset purchase agreement. Under the terms of the asset purchase agreement, we paid the Seller $20.0 million at the closing of the transaction and an additional $10.0 million during the six months ended June 30, 2020 with another $10.0 million being due two years following the date of closing. The related liabilities were recorded at fair value on the acquisition date as part of the consideration transferred and were included in accounts payable and accrued expenses as of June 30, 2020 and accounts payable and accrued expenses and other accrued expenses and liabilities as of December 31, 2019.
In addition to the cash payments, we have recorded approximately $9.0 million in contingent consideration liabilities based upon the achievement of certain revenue targets with a maximum payout of up to $10.0 million. The related liabilities were recorded at fair value on the acquisition date as part of the consideration transferred and are remeasured each reporting period. The inputs used to measure the fair value of our liabilities are categorized as Level 3 in the fair value hierarchy. Contingent consideration liabilities as of June 30, 2020 and December 31, 2019 were approximately $9.6 million and $9.4 million, respectively, and were included in accounts payable and accrued expenses and other accrued expenses and liabilities in our Balance Sheets as of June 30, 2020 and December 31, 2019, respectively.
Micro Gaming Technologies, Inc.
On December 24, 2019, we acquired certain assets of Micro Gaming Technologies, Inc. (“MGT”), a privately held company that develops and distributes kiosks and software applications to gaming patrons to enhance patron loyalty, in an asset purchase agreement. The acquired assets consist of existing contracts with gaming operators, technology, and intellectual property intended to allow us to provide gaming operators with self-service patron loyalty functionality delivered through stand-alone kiosk equipment and a marketing platform that manages and delivers gaming operators marketing programs through these patron interfaces. This acquisition further expands our financial technology player loyalty offerings within our FinTech segment. Under the terms of the asset purchase agreement, we paid MGT $15.0 million at the closing of the transaction and per the original agreement, additional $5.0 million was due by April 1, 2020 with a final payment of $5.0 million due two years following the date of closing. In light of the COVID-19 pandemic, we entered into an amendment to the asset purchase agreement allowing us to remit the additional $5.0 million by July 1, 2020, which we paid in June 2020, with a final payment of $5.0 million due by July 1, 2021. The related liabilities were recorded at fair value on the acquisition date as part of the consideration transferred and were included in accounts payable and accrued expenses and other accrued expenses and liabilities as of June 30, 2020 and December 31, 2019 for the current and non-current portions, respectively. The total consideration for this acquisition was approximately $25.0 million. The acquisition did not have a significant impact on our results of operations or financial condition.
The estimates and assumptions incorporated in accounting for the transaction included 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, contract liabilities, including 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 of the transaction and the final fair value analysis, which we expect to complete no later than the fourth quarter of 2020.
The financial results included in our Statements of Operations for the three and six months ended June 30, 2020 reflected revenues of approximately $1.2 million and $3.8 million, respectively, attributed to the MGT business. As a result of the integration of the acquired business into our existing player loyalty operations during the current period, presentation of net income contributed by MGT is impracticable. Acquisition-related costs incurred during the three and six months ended June 30, 2020 were not material.
The unaudited pro forma financial data with respect to the revenue and earnings as if the MGT acquisition occurred on January 1, 2019 would reflect revenues of approximately $133.7 million and $261.0 million for the three and six months ended June 30, 2019, respectively, and net income of approximately $5.4 million and $11.1 million for the three and six months ended June 30, 2019, respectively.
v3.20.2
FUNDING AGREEMENTS
6 Months Ended
Jun. 30, 2020
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 ATMs. For the use of these funds, we pay a cash usage fee on either the average daily balance of funds utilized multiplied by a contractually defined cash usage rate or the amounts supplied multiplied by a contractually defined cash usage rate. These cash usage fees, reflected as interest expense within the Statements of Operations, were approximately $0.2 million and $1.7 million for the three and six months ended June 30, 2020, respectively, and approximately $1.9 million and $3.7 million for the three and six months ended June 30, 2019, respectively. We are exposed to interest rate risk to the extent that the applicable rates increase.
Under these agreements, the currency supplied by third-party vendors 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 balances of ATM cash utilized by us from these third-parties were approximately $319.4 million and $292.6 million as of June 30, 2020 and December 31, 2019, 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 in the maximum amount of $300 million with the ability to increase the amount by $75 million over a 5-day period for holidays, such as the period around New Year’s Day. The term of the agreement expires on June 30, 2022 and will automatically renew for additional one-year periods unless either party provides a 90-day written notice of its intent not to renew.
We are responsible for any losses of cash in the ATMs under this agreement, and we self-insure for this type of risk. There were no losses for the three and six months ended June 30, 2020 and 2019.
v3.20.2
TRADE AND OTHER RECEIVABLES
6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
TRADE AND OTHER RECEIVABLES TRADE AND OTHER RECEIVABLES
Trade and other receivables represent short-term credit granted to customers and long-term loans receivable in connection with our Games and FinTech equipment and compliance products. Trade and loans receivable generally do not require collateral. The balance of trade and loans receivable consists of outstanding balances owed to us by gaming establishments. Other receivables include income tax receivables and other miscellaneous receivables.
The balance of trade and other receivables consisted of the following (in thousands):
 At June 30,At December 31,
20202019
Trade and other receivables, net  
Games trade and loans receivable
$33,533  $51,651  
FinTech trade and loans receivable
26,906  23,723  
Contract assets
16,146  15,408  
Insurance settlement receivable(1)
7,650  7,650  
Other receivables
848  3,977  
Net investment in sales-type leases
1,746  2,162  
Total trade and other receivables, net86,829  104,571  
Non-current portion of receivables  
Games trade and loans receivable
(1,335) (1,018) 
FinTech trade and loans receivable
(6,146) (7,581) 
Contract assets
(7,754) (6,774) 
Net investment in sales-type leases
(861) (1,288) 
Total non-current portion of receivables(16,096) (16,661) 
Total trade and other receivables, current portion$70,733  $87,910  
(1) Refer to “Note 13 — Commitments and Contingencies” for a discussion on the insurance settlement receivable.
Allowance for Credit Losses
As discussed in “Note 2 — Basis of Presentation and Summary of Significant Accounting Policies,” we adopted ASC 326 effective January 1, 2020 using the modified retrospective approach such that the new guidance applies to the reporting periods
following the adoption date with prior period presentation not being impacted. The adoption of ASC 326 did not have a material impact on our Financial Statements and did not result in a cumulative-effect adjustment as of the adoption date. Our operations were not significantly impacted, both for short- and long-term accounts receivable, due to the following:
Our FinTech business acts as a merchant of record for settlement transactions for our cash access related customers wherein cash is held by the Company; therefore, we generally have the ability to withhold the necessary funds from customers to satisfy the outstanding receivables associated with equipment, information and other products and services.
Our Games business sells EGMs to gaming establishments on a relatively short-term basis and collections are reasonably certain based on historical experience, financial stability of our customers, and lack of concentration of our receivables. The material portion of long-term loans receivable balance is fully collateralized, and therefore, does not represent a risk of credit loss. The risk of credit loss is further reduced by the fact that both segments generally share the same top customers such that sales made by the Games business to the existing FinTech customers are secured by our ability to withhold the necessary funds through the FinTech revenue arrangements.
We continually evaluate the collectability of outstanding balances and maintain an allowance for credit losses related to our trade and other receivables and notes receivable that have been determined to have a high risk of uncollectability, which represents our best estimates of the current expected credit losses to be incurred in the future. To derive our estimates, we analyze historical collection trends and changes in our customer payment patterns, current and expected conditions and market trends along with our operating forecasts, concentration, and creditworthiness when evaluating the adequacy of our allowance for credit losses. In addition, with respect to our check warranty receivables, we are exposed to risk for the losses associated with warranted items that cannot be collected from patrons issuing these items. We evaluate the collectability of the outstanding balances and establish a reserve for the face amount of the current expected credit losses related to these receivables. The provision for doubtful accounts receivable is included within operating expenses and the check warranty loss reserves are included within cash access services cost of revenues in the Statements of Operations.
The activity in our allowance for credit losses for the six months ended June 30, 2020 and 2019 is as follows:
Six Months Ended June 30,
20202019
Beginning allowance for credit losses$(5,786) $(6,425) 
Provision(4,981) (5,912) 
Charge-offs and recoveries8,162  5,692  
Ending allowance for credit losses$(2,605) $(6,645) 
v3.20.2
INVENTORY
6 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]  
INVENTORY INVENTORY
Our inventory primarily consists of component parts as well as work-in-progress and finished goods. The cost of inventory includes cost of materials, labor, overhead and freight, and is accounted for using the first in, first out method. The inventory is stated at the lower of cost or net realizable value.
Inventory consisted of the following (in thousands): 
 At June 30,At December 31,
 20202019
Inventory  
Component parts, net of reserves of $3,881 and $2,007 at June 30, 2020 and December 31, 2019, respectively
$24,008  $24,864  
Work-in-progress
1,861  94  
Finished goods
7,971  1,616  
Total inventory
$33,840  $26,574  
v3.20.2
PREPAID EXPENSES AND OTHER ASSETS
6 Months Ended
Jun. 30, 2020
Prepaid Expense and Other Assets [Abstract]  
PREPAID EXPENSES AND OTHER ASSETS PREPAID EXPENSES AND OTHER ASSETS
Prepaid expenses and other assets include the balance of prepaid expenses, deposits, debt issuance costs on our Revolving Credit Facility (defined herein), restricted cash, operating lease ROU assets, and other assets. The current portion of these assets is included in prepaid expenses and other current assets and the non-current portion is included in other assets, both of which are contained within the Balance Sheets.
The balance of the current portion of prepaid expenses and other assets consisted of the following (in thousands):
 At June 30,At December 31,
 20202019
Prepaid expenses and other current assets  
Prepaid expenses
$14,595  $11,272  
Restricted cash(1)
291  6,639  
Deposits
2,988  8,501  
Other
1,566  1,484  
Total prepaid expenses and other current assets
$19,440  $27,896  
(1) Refer to “Note 2 — Basis of Presentation and Summary of Significant Accounting Policies” for discussion on the composition of the restricted cash balance.
The balance of the non-current portion of other assets consisted of the following (in thousands): 
 At June 30,At December 31,
 20202019
Other assets  
Operating lease ROU assets
$9,782  $12,257  
Prepaid expenses and deposits
5,573  7,378  
Debt issuance costs of revolving credit facility
362  460  
Other
469  244  
Total other assets
$16,186  $20,339  
v3.20.2
PROPERTY AND EQUIPMENT
6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
Property and equipment consists of the following (dollars in thousands): 
  At June 30, 2020At December 31, 2019
Useful Life
(Years)
CostAccumulated
Depreciation
Net Book
Value
CostAccumulated
Depreciation
Net Book
Value
Property and equipment       
Rental pool - deployed
2-4
$199,643  $118,763  $80,880  $196,571  $106,888  $89,683  
Rental pool - undeployed
2-4
20,505  14,170  6,335  31,901  22,970  8,931  
FinTech equipment
3-5
30,232  22,567  7,665  29,947  22,114  7,833  
Leasehold and building improvementsLease Term10,907  7,729  3,178  11,815  8,150  3,665  
Machinery, office, and other equipment
2-5
43,847  28,909  14,938  48,860  30,103  18,757  
Total
 $305,134  $192,138  $112,996  $319,094  $190,225  $128,869  
Depreciation expense related to property and equipment totaled approximately $16.3 million and $32.5 million for the three and six months ended June 30, 2020, respectively. Depreciation expense related to property and equipment totaled approximately $15.3 million and $30.0 million for the three and six months ended June 30, 2019, respectively.
v3.20.2
GOODWILL AND OTHER INTANGIBLE ASSETS
6 Months Ended
Jun. 30, 2020
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 $681.5 million and $681.6 million at June 30, 2020 and December 31, 2019, respectively. We have the following reporting units: (i) Games; (ii) Cash Access Services; (iii) Kiosk Sales and Services; (iv) Central Credit Services; (v) Compliance Sales and Services; and (vi) Player Loyalty Sales and Services.
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. We generally conduct the test by utilizing a “Step 1” analysis, which requires a comparison of the carrying amount of each reporting unit to its estimated fair value.
Interim Assessment for Impairment of Goodwill
The impact of COVID-19 and the closure of most casino properties for a majority of the period qualified as a triggering event and accordingly, we performed a goodwill impairment test during the second quarter of 2020, for which we utilized the “Step 1” approach that required a comparison of the carrying amount of each reporting unit to its estimated fair value.
To estimate the fair value of each reporting unit, we used a combination of an income valuation approach and a market valuation approach. The income valuation approach is based on a discounted cash flow (“DCF”) analysis. This method involves estimating the after-tax net cash flows attributable to a reporting unit and then discounting them to a present value using a risk-adjusted discount rate. Assumptions applied in the DCF to derive our after-tax net cash flows require the use of significant judgment, including, but not limited to: appropriate discount rates and terminal values, growth rates and the amount and timing of expected future cash flows. The projected cash flows are based on our most recent expectations. We believe our assumptions are consistent with the plans and estimates used to manage the underlying businesses. The discount rates, which are intended to reflect the risks inherent in future after-tax net cash flow projections used in the DCF are based on estimates of the weighted average cost of capital (the “WACC”) of market participants relative to each respective reporting unit. The market valuation approach considers comparable market data based on multiples of revenue or earnings before interest, taxes, depreciation and amortization (“EBITDA”). To the extent the carrying amount of a reporting unit is less than its estimated fair value, an impairment charge is recorded.
In connection with the interim assessment conducted in the period, we determined that no goodwill impairment adjustments were necessary as a result of the fair value of each reporting unit exceeding its carrying amount. Our Games reporting unit had a carrying amount of approximately $449.0 million, which represented a majority of the total goodwill balance. The fair value of this reporting unit exceeded carrying value by approximately 10% at May 31, 2020.

As additional facts and circumstances evolve, we continue to observe and assess our reporting units with a specific focus on the Games reporting unit, particularly as a direct consequence of the circumstances surrounding COVID-19. To the extent new information becomes available that impacts our results of operations and financial condition, we expect to revise our projections accordingly as our estimates of future net after-tax cash flows are highly dependent upon certain assumptions, including, but not limited to, the amount and timing of the economic recovery globally, nationally and specifically within the gaming industry. More specifically, we may need to further adjust our assumptions and we may be required to perform either a quantitative or qualitative assessment of our goodwill in future periods given the significant degree of uncertainty with respect to: (i) the timing of reopening, and the subsequent reclosing, of certain casino properties; (ii) regulatory and governmental restrictions; and (iii) the demand from patrons that visit gaming establishments.

Furthermore, 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, especially in light of the uncertainty surrounding the COVID-19 pandemic. 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.
Other Intangible Assets
Other intangible assets consist of the following (dollars in thousands): 
  At June 30, 2020At December 31, 2019
Useful Life
(Years)
CostAccumulated
Amortization
Net Book
Value
CostAccumulated
Amortization
Net Book
Value
Other intangible assets       
Contract rights under placement fee agreements
3-7
$58,351  $25,015  $33,336  $58,516  $20,888  $37,628  
Customer contracts
3-14
71,975  51,940  20,035  71,975  49,477  22,498  
Customer relationships
3-7
231,100  116,067  115,033  231,100  105,584  125,516  
Developed technology and software
1-6
304,792  233,840  70,952  314,343  224,274  90,069  
Patents, trademarks, and other
2-18
19,682  17,023  2,659  19,682  16,206  3,476  
Total$685,900  $443,885  $242,015  $695,616  $416,429  $279,187  
Amortization expense related to other intangible assets was approximately $19.3 million and $38.6 million for the three and six months ended June 30, 2020, respectively. Amortization expense related to other intangible assets was approximately $17.7 million and $34.0 million for the three and six months ended June 30, 2019, respectively.
We paid approximately $0.3 million and $0.9 million in placement fees for the three and six months ended June 30, 2020, respectively. The payment for the three and six months ended June 30, 2020 did not include imputed interest. We paid approximately $6.5 million and $12.1 million in placement fees, including $0.2 million and $0.5 million of imputed interest, for the three and six months ended June 30, 2019, respectively.
During the three months ended June 30, 2020, we recorded a full write-down of assets of approximately $5.9 million, of which $5.5 million and $0.4 million, related to our Games and Fintech businesses, respectively, for certain of our internally developed and third-party software projects that were not expected to be pursued. This charge was reflected in Operating Expenses of our Statements of Operations.
v3.20.2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
6 Months Ended
Jun. 30, 2020
Payables and Accruals [Abstract]  
ACCOUNTS PAYABLE AND ACCRUED EXPENSES ACCOUNTS PAYABLE AND ACCRUED EXPENSES
The following table presents our accounts payable and accrued expenses (in thousands):
 At June 30,At December 31,
 20202019
Accounts payable and accrued expenses  
Trade accounts payable
$49,908  $78,627  
Contract liabilities
39,318  28,510  
Litigation accrual(1)
14,000  14,000  
Contingent consideration and acquisition-related liabilities(2)
19,490  14,902  
Accrued interest
1,453  1,347  
Operating lease liabilities
6,167  5,824  
Payroll and related expenses
11,655  18,058  
Cash access processing and related expenses
1,615  5,511  
Other
2,354  3,893  
Accrued taxes
1,679  1,846  
Placement fees
—  585  
Total accounts payable and accrued expenses
$147,639  $173,103  
(1) Refer to “Note 13 — Commitments and Contingencies” for discussion on this legal matter.
(2) Refer to “Note 4 — Business Combinations” for discussion on the contingent consideration and acquisition-related liabilities.
v3.20.2
LONG-TERM DEBT
6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
LONG-TERM DEBT LONG-TERM DEBT
The following table summarizes our outstanding indebtedness (in thousands):
 MaturityInterestAt June 30,At December 31,
 DateRate20202019
Long-term debt  
$820 million Term Loan Facility
2024
LIBOR+2.75%
$735,500  $749,000  
$125 million Incremental Term Loan Facility
2024
LIBOR+10.50%
125,000  —  
$35 million Revolving Credit Facility
2022
LIBOR+4.50%
35,000  —  
Senior Secured Credit Facilities
895,500  749,000  
$375 million 2017 Unsecured Notes
20257.50%285,381  375,000  
Total debt
1,180,881  1,124,000  
Debt issuance costs and discount(18,251) (15,922) 
Total debt after debt issuance costs and discount
1,162,630  1,108,078  
Current portion of long-term debt(1,250) —  
Total long-term debt, net of current portion$1,161,380  $1,108,078  
Senior Secured Credit Facilities
Our Senior Secured Credit Facilities consist of: (i) an $820.0 million, seven-year senior secured term loan facility (the “Term Loan Facility”); (ii) a $125.0 million, seven-year senior secured term loan (the "Incremental Term Loan"); and (iii) a $35.0 million, five-year senior secured revolving credit facility (the “Revolving Credit Facility”) provided for under our credit agreement with Everi Payments, as borrower, and Everi Holdings with the lenders party thereto and Jefferies Finance LLC, as administrative agent, collateral agent, swing line lender, letter of credit issuer, sole lead arranger and sole book manager (the “Credit Agreement”).
In March 2020, we completed the full draw down of our available capacity of $35.0 million under the Revolving Credit Facility in order to improve our liquidity and preserve financial flexibility in light of the uncertainty in our industry and the global economy as a result of COVID-19. In accordance with the terms of the Revolving Credit Facility, the proceeds from this borrowing are being used for working capital, general corporate purposes and other permitted uses.
On April 21, 2020, we entered into the Fourth Amendment to our existing Credit Agreement, which among other things: (a) permits the incurrence of incremental equivalent debt subject to a 4.50:1.00 Consolidated Secured Leverage Ratio (as defined in the Credit Agreement) for calculation periods prior to December 31, 2021; and (b) amends the consolidated secured leverage ratio covenant, including to remove the maximum consolidated secured leverage ratio for the quarters ending June 30, 2020, September 30, 2020 and December 31, 2020 and to change the computation methodology of the consolidated leverage ratio for the quarters ending March 31, 2021, June 30, 2021, and September 30, 2021.
On April 21, 2020 (the “Closing Date”), we entered into a new credit agreement, dated as of April 21, 2020 (the “Incremental Term Loan Credit Agreement”), which provides for a $125.0 million Incremental Term Loan, which is secured on a pari passu basis with the loans under our existing Credit Agreement. The entire amount of the Incremental Term Loan was borrowed on April 21, 2020.
The Incremental Term Loan matures May 9, 2024. The interest rate per annum applicable to the Incremental Term Loan will be, at Everi Payment’s option, the Eurodollar rate plus 10.50% or the base rate plus 9.50%.
Voluntary prepayments of the Incremental Term Loan prior to the two-year anniversary of the Closing Date will be subject to a make-whole premium, and voluntary prepayments for the six-month period thereafter will be subject to a prepayment premium of 1.00% of the principal amount repaid.
The Incremental Term Loan Credit Agreement contains certain covenants that, among other things, limit our ability, and the ability of certain of our subsidiaries, to incur additional indebtedness, sell assets or consolidate or merge with or into other companies, pay dividends or repurchase or redeem capital stock, make certain investments, issue capital stock of subsidiaries, incur liens, prepay, redeem or repurchase subordinated debt, and enter into certain types of transactions with our affiliates. The Incremental Term Loan Credit Agreement also requires us, together with our subsidiaries, to comply with a maximum
consolidated secured leverage ratio, except that no such requirement shall apply for the quarters ending June 30, 2020, September 30, 2020, and December 31, 2020.
In connection with the issuance of the Incremental Term Loan on April 21, 2020, we also issued warrants to Sagard Credit Partners, LP and Sagard Credit Partners (Cayman), LP (collectively, “Sagard”) to acquire 184,670 and 40,330 shares of our common stock with an exercise price equal to $5.37 per share. The warrants were issued in connection with the Incremental Term Loan as further consideration based on the level of participation in the arrangement by Sagard. The warrants expire on the fifth anniversary of the date of issuance. The number of shares issuable pursuant to the warrants and the warrant exercise price are subject to adjustment for stock splits, reverse stock splits, stock dividends, recapitalization, mergers and certain other events.
The weighted average interest rate on the Term Loan was 3.82% and 4.13% for the three and six months ended June 30, 2020, respectively. The weighted average interest rate on the Revolving Credit Facility was 5.50% and 5.53% for the three and six months ended June 30, 2020, respectively. The weighted average interest rate on the Incremental Term Loan Credit Facility was 11.50% for the three and six months ended June 30, 2020, respectively.
Senior Unsecured Notes
In December 2017, we issued $375.0 million in aggregate principal amount of 7.50% Senior Unsecured Notes due 2025 (the “2017 Unsecured Notes”) under an indenture (the “2017 Notes Indenture”), dated December 5, 2017, among Everi Payments (as issuer), Everi Holdings and certain of its direct and indirect domestic subsidiaries as guarantors, and Deutsche Bank Trust Company Americas, as trustee. Interest on the 2017 Unsecured Notes accrues at a rate of 7.50% per annum and is payable semi-annually in arrears on each June 15 and December 15 since June 15, 2018.
In January 2020, we completed a partial redemption payment of approximately $84.5 million of aggregate principal with respect to the 2017 Unsecured Notes. In March 2020, we completed an open market repurchase of approximately $5.1 million of aggregate principal with respect to the 2017 Unsecured Notes. The total outstanding balance of the 2017 Unsecured Notes following the redemption and repurchase transactions was approximately $285.4 million. We incurred a loss on extinguishment of debt of approximately $7.5 million, which consisted of a $6.4 million redemption premium related to the satisfaction and redemption of a portion of the 2017 Unsecured Notes, and non-cash charges for the accelerated amortization of the related debt issuance costs of approximately $1.1 million.
Compliance with Debt Covenants
We were in compliance with the covenants and terms of the Senior Secured Credit Facilities and the 2017 Unsecured Notes as of June 30, 2020.
v3.20.2
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2020
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: (a) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings, and other relevant events and developments; (b) the advice and analyses of counsel; and (c) the assumptions and judgment of management. Legal costs associated with such proceedings are expensed as incurred. Due to the inherent uncertainty of legal proceedings as a result of the procedural, factual, and legal issues involved, the outcomes of our legal contingencies could result in losses in excess of amounts we have accrued.
We have accrued approximately $14.0 million for the legal contingencies in connection with Fair and Accurate Credit Transactions Act (“FACTA”)-related matters based on ongoing settlement negotiations with by and among the various plaintiffs described in FACTA-related matters below and Everi by and on behalf of itself and Everi Payments. We expect to recover within the next year approximately $7.7 million of the amount accrued from certain of our insurance providers, for which we recorded an insurance settlement receivable included within trade and other receivables, net on our Balance Sheets, as
recovery is deemed to be probable. In addition, we are seeking relief from Peleus Insurance Company pursuant to the provisions of our policy; however, we have not recorded any amounts with respect to this specific insurance carrier as there have been no commitments, settlements or determinations entered into as of the date of this periodic filing.
FACTA-related matters:
Geraldine Donahue, et. al. v. Everi FinTech, et. al. (“Donahue”), is a putative class action matter filed on December 12, 2018, in the Circuit Court of Cook County, Illinois County Division, Chancery Division. The original defendant was dismissed and the Company was substituted as the defendant on April 22, 2019. Plaintiff, on behalf of himself and others similarly situated, alleges that Everi FinTech and the Company (a) have violated certain provisions of FACTA by their failure, as agent to the original defendant, to properly truncate patron credit card numbers when printing cash access receipts as required under FACTA, and (b) have been unjustly enriched through the charging of service fees for transactions conducted at the original defendant’s facilities. Plaintiff seeks an award of statutory damages, attorney’s fees, and costs. The parties have reached an agreement in principle for settlement of this matter, which will include the settlement and resolution of all the FACTA-related matters pending against the Company and Everi FinTech. The settlement requires court approval, which the parties are in the process of working to obtain.
Oneeb Rehman, et. al. v. Everi FinTech and Everi Holdings, was a putative class action matter pending in the U.S. District Court for the Southern District of Florida, Ft. Lauderdale Division filed on October 16, 2018. The original defendant was dismissed and the Company was substituted as the defendant on April 22, 2019. Plaintiff, on behalf of himself and others similarly situated, alleged that Everi FinTech and the Company (a) had violated certain provisions of FACTA by their failure, as agent to the original defendant, to properly truncate patron credit card numbers when printing cash access receipts as required under FACTA, and (b) had been unjustly enriched through the charging of service fees for transactions conducted at the original defendant’s facilities. Plaintiff sought an award of statutory damages, attorney’s fees, and costs. This matter has been dismissed in anticipation of court approval of the settlement in Donahue.
Mat Jessop, et. al. v. Penn National Gaming, Inc., was a putative class action matter filed on October 15, 2018, pending in the U.S. District Court for the Middle District of Florida, Orlando Division. Everi FinTech was added as a defendant on December 21, 2018. Penn National Gaming, Inc. (“Penn National”) was dismissed by the Court with prejudice on October 28, 2019, leaving only claims against Everi FinTech. Plaintiff, on behalf of himself and others similarly situated, alleged that Everi FinTech had been unjustly enriched through the charging of service fees for transactions conducted at Penn National facilities. Plaintiff sought injunctive relief against both parties, and an award of statutory damages, attorney’s fees, and costs. This matter has been dismissed in anticipation of court approval of the settlement in Donahue.
Everi Payments Inc. and Everi Holdings Inc. v Peleus Insurance Company is a civil action filed by the Company on January 28, 2020, pending in the District Court, Clark County, Nevada alleging defendant breached its contractual obligations under an excess insurance policy when it denied the Company coverage of the FACTA-related matters described above. Everi FinTech and the Company are seeking actual and consequential damages for breach of contract, costs, attorney’s fees, and other fees and expenses incurred by Everi FinTech and the Company, up to and including amounts related to the settlement in Donahue.
NRT matter:
NRT Technology Corp., et. al. v. Everi Holdings Inc., et. al., is a civil action filed on April 30, 2019 against the Company and Everi FinTech in the United States District Court for the District of Delaware by NRT Technology Corp. and NRT Technology, Inc., alleging monopolization of the market for unmanned, integrated kiosks in violation of federal antitrust laws, fraudulent procurement of patents on functionality related to such unmanned, integrated kiosks and sham litigation related to prior litigation brought by Everi FinTech (operating as Global Cash Access Inc.) against the plaintiff entities. Plaintiffs seek compensatory damages, trebled damages, and injunctive and declaratory relief. We are currently unable to determine the probability of the outcome of this legal matter or estimate the range of reasonably possible loss, if any. We believe that the claims in the lawsuit are without merit, and intend to vigorously defend against them.
In addition, we have commitments with respect to certain lease obligations discussed in “Note 3 — Leases” and installment payments under our asset purchase agreements discussed in “Note 4 — Business Combinations.”
v3.20.2
STOCKHOLDERS' EQUITY
6 Months Ended
Jun. 30, 2020
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITYIn February 2020, our Board of Directors authorized and approved a new share repurchase program granting us the authority to repurchase an amount not to exceed $10.0 million of outstanding Company common stock with no minimum number of shares that the Company is required to repurchase. This new repurchase program commenced in the first quarter of 2020 and authorizes us to buy our common stock from time to time in open market transactions, block trades or in private transactions in accordance with trading plans established in accordance with Rules 10b5-1 and 10b-18 of the Securities Exchange Act of 1934, as amended, or by a combination of such methods, including compliance with the Company’s finance agreements. The share repurchase program is subject to available liquidity, general market and economic conditions, alternate uses for the capital and other factors, and may be suspended or discontinued at any time without prior notice. In light of COVID-19, we have suspended our share repurchase program. There were no share repurchases during the three and six months ended June 30, 2020.
v3.20.2
WEIGHTED AVERAGE COMMON SHARES
6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
WEIGHTED AVERAGE COMMON SHARES WEIGHTED AVERAGE COMMON SHARES
The weighted average number of shares of common stock outstanding used in the computation of basic and diluted earnings per share is as follows (in thousands): 
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Weighted average shares  
Weighted average number of common shares outstanding - basic85,122  71,477  84,873  70,909  
Potential dilution from equity awards(1)
—  7,681  —  6,302  
Weighted average number of common shares outstanding - diluted(1)
85,122  79,158  84,873  77,211  
(1)  We were in a net loss position for the three and six months ended June 30, 2020, and therefore, no potential dilution from the application of the treasury stock method was applicable. The potential dilution excludes the weighted average effect of equity awards to purchase approximately 13.6 million and 6.2 million shares of common stock for the three and six months ended June 30, 2020, respectively, as the application of the treasury stock method, as required, makes them anti-dilutive. The potential dilution excludes the weighted average effect of equity awards to purchase approximately 0.1 million and 1.7 million shares of common stock for the three and six months ended June 30, 2019, respectively, as the application of the treasury stock method, as required, makes them anti-dilutive.
v3.20.2
SHARE-BASED COMPENSATION
6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION
Equity Incentive Awards
Generally, we grant the following types of awards: (a) time-based options; (b) market-based options; (c) time-based restricted stock units (“RSUs”); and (d) performance-based stock units (“PSUs”).
A summary of award activity is as follows (in thousands): 
Stock Options GrantedRestricted Stock Units Granted
Outstanding, December 31, 201911,969  3,451  
Granted—  2,163  
Exercised options or vested shares(447) (594) 
Canceled or forfeited(83) (174) 
Outstanding, June 30, 202011,439  4,846  
There are approximately 0.4 million awards of our common stock available for future equity grants under our existing equity incentive plans.
Stock Options
Our time-based stock options granted under our equity plans generally vest evenly over a four-year period on each of the applicable anniversaries of the grant dates, and typically expire after a ten-year period. Our market-based options granted generally vest evenly over a four-year period on each of the applicable anniversaries of the grant date, provided that as of the vesting date for each vesting tranche, the closing price of our shares on the New York Stock Exchange is at least a specified price hurdle, defined as a percentage premium to the closing stock price on the grant date. If the price hurdle is not met as of the vesting date for a vesting tranche, then it shall vest and become vested shares on the last day of a period of 30 consecutive trading days during which the closing price is at least the price hurdle. These options typically expire after a ten-year period.
The following table presents the options activity for the six months ended June 30, 2020:
Number of
Options
(in thousands)
Weighted Average
Exercise Price
(per Share)
Weighted
Average Life
Remaining
(Years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding, December 31, 201911,969  $5.06  5.5$100,143  
Granted—   
Exercised(447) $4.73   
Canceled or forfeited(83) $3.93   
Outstanding, June 30, 202011,439  $5.08  4.9$15,242  
Vested and expected to vest, June 30, 202011,371  $5.09  4.9$15,125  
Exercisable, June 30, 202010,447  $5.22  4.8$13,499  
There were no option awards granted during the three and six months ended June 30, 2020 and 2019. The total intrinsic value of options exercised was approximately $0.4 million and $1.7 million for the three and six months ended June 30, 2020, respectively, and $4.2 million and $7.5 million for the three and six months ended June 30, 2019, respectively.
There was approximately $0.8 million in unrecognized compensation expense related to options expected to vest as of June 30, 2020. This cost was expected to be recognized on a straight-line basis over a weighted average period of 0.7 years. We recorded approximately $1.0 million in non-cash compensation expense related to options granted that were expected to vest for the six months ended June 30, 2020. We received approximately $0.5 million and $2.1 million in cash from the exercise of options for the three and six months ended June 30, 2020, respectively.
There was approximately $2.2 million in unrecognized compensation expense related to options expected to vest as of June 30, 2019. This cost was expected to be recognized on a straight-line basis over a weighted average period of 1.5 years. We recorded approximately $1.8 million in non-cash compensation expense related to options granted that were expected to vest for the six months ended June 30, 2019. We received approximately $4.8 million and $9.5 million in cash from the exercise of options for the three and six months ended June 30, 2019.
Restricted Stock Units
The fair value of each RSU grant is based on the market value of our common stock at the date of grant. The RSUs generally vest evenly either over a three- or four-year period on each of the applicable anniversaries of the dates of grants. The PSUs vest upon achievement of stipulated performance criteria.
The following table presents our RSU awards activity for the six months ended June 30, 2020:
Shares
Outstanding
(in thousands)
Weighted
Average Grant
Date Fair Value
(per share)
Weighted
Average Life
Remaining
(years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding, December 31, 20193,451  $9.05  1.7$46,342  
Granted2,163  $6.07    
Vested(594) $8.86    
Forfeited(174) $9.26    
Outstanding, June 30, 20204,846  $7.73  1.6$24,998  
Vested and expected to vest, June 30, 20203,914  $7.55  1.5$20,197  
There were approximately 2.2 million and 2.0 million shares of RSU awards granted for the six months ended June 30, 2020 and 2019, respectively. There were approximately 594,016 and 277,802 RSU awards that vested during the six months ended June 30, 2020 and 2019, respectively.
There was approximately $20.7 million and $16.8 million in unrecognized compensation expense related to RSU awards expected to vest as of June 30, 2020 and 2019, respectively. This cost was expected to be recognized on a straight-line basis over a weighted average period of 2.2 years and 3.0 years as of June 30, 2020 and 2019, respectively. We recorded approximately $6.1 million and $2.3 million in non-cash compensation expense related to the RSU awards during the six months ended June 30, 2020 and 2019, respectively.
v3.20.2
INCOME TAXES
6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The income tax benefit reflected an effective income tax rate of 5.7% and 5.9% for the three and six months ended June 30, 2020, respectively, which was less than the statutory federal rate of 21.0%, primarily due to an increase in our valuation allowance due to book loss incurred during the period, partially offset by certain indefinite-lived deferred tax assets that can be offset against our indefinite lived deferred tax liabilities. The income tax benefit reflected an effective income tax rate of negative 23.4% and negative 14.4% for the three and six months ended June 30, 2019, respectively, which was less than the statutory federal rate of 21.0%, primarily due to a decrease in our valuation allowance for deferred tax assets, the benefit from stock option exercises and the benefit from a research credit.
We have analyzed filing positions in all of the federal, state, and foreign jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. As of June 30, 2020, we recorded approximately $1.4 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.
For interim income tax reporting, the Company estimates its annual effective tax rate and applies it to its year-to-date ordinary income. Our projection of certain indefinite lived deferred tax assets affecting the valuation allowance is particularly dependent upon current and anticipated future revenue and cash outflows. However, we could be impacted by unanticipated developments or by events beyond our control, including developments related to the COVID-19 pandemic. Future changes to estimates used in this projection could result in material changes in the annual effective tax rate with a corresponding impact on the provision for income taxes.
As discussed in “Note 1 — Business,” in late March 2020, the CARES Act was enacted in light of the COVID-19 pandemic. We are taking advantage of the various income and payroll tax provisions in the CARES Act and are continuing to analyze its impact in our tax accounts.
v3.20.2
SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATIONOperating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-making group (the “CODM”). Our CODM consists of the Chief Executive Officer, the President and Chief Operating Officer, and the Chief Financial Officer. Our CODM allocates resources and measures profitability based on our operating segments, which are managed and reviewed separately, as each represents products and services that can be sold separately to our customers. Our segments are monitored by management for performance against our internal forecasts.
We have reported our financial performance based on our segments in both the current and prior periods. Our CODM determined that our operating segments for conducting business are: (a) Games and (b) FinTech:
The Games segment provides solutions directly to gaming establishments to offer their patrons gaming entertainment- related experiences including: leased gaming equipment; sales of gaming equipment; gaming systems; digital online solutions; and ancillary products and services.
The FinTech segment provides solutions directly to gaming establishments to offer their patrons cash access-related services and products, including: access to cash at gaming facilities via ATM cash withdrawals; credit card cash access transactions and POS debit card cash access transactions; check warranty services; kiosks for cash access and other services; self-service enrollment, player loyalty and marketing equipment; maintenance services; compliance, audit, and data software; casino credit data and reporting services; and other ancillary offerings.
Corporate overhead expenses have been allocated to the segments either through specific identification or based on a reasonable methodology. In addition, we record depreciation and amortization expenses to the business segments.
Our business is predominantly domestic with no specific regional concentrations and no significant assets in foreign locations.
The following tables present segment information (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Games  
Revenues  
Gaming operations$13,859  $45,576  $59,545  $89,862  
Gaming equipment and systems6,983  23,412  18,566  46,499  
Gaming other11  391  32  445  
Total revenues$20,853  $69,379  $78,143  $136,806  
Costs and expenses  
Cost of revenues(1)
  
Gaming operations1,681  3,726  6,226  7,850  
Gaming equipment and systems4,071  13,432  10,895  25,961  
Gaming other456  347  456  347  
Cost of revenues6,208  17,505  17,577  34,158  
Operating expenses22,714  15,964  37,519  30,631  
Research and development3,620  5,265  9,816  11,112  
Depreciation14,844  13,489  29,572  26,863  
Amortization15,315  14,604  30,900  28,386  
Total costs and expenses62,701  66,827  125,384  131,150  
Operating (loss) income$(41,848) $2,552  $(47,241) $5,656  
(1) Exclusive of depreciation and amortization.
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
FinTech  
Revenues  
Cash access services$10,034  $39,696  $47,007  $80,528  
Equipment3,404  7,835  9,756  14,863  
Information services and other4,424  12,796  17,118  21,284  
Total revenues$17,862  $60,327  $73,881  $116,675  
Costs and expenses  
Cost of revenues(1)
  
Cash access services511  2,968  4,066  5,665  
Equipment2,014  4,597  5,904  8,927  
Information services and other324  970  1,198  1,928  
Cost of revenues2,849  8,535  11,168  16,520  
Operating expenses18,889  23,203  42,981  43,184  
Research and development1,573  1,407  4,108  3,091  
Depreciation1,450  1,769  2,965  3,184  
Amortization3,980  3,086  7,719  5,601  
Total costs and expenses28,741  38,000  68,941  71,580  
Operating (loss) income$(10,879) $22,327  $4,940  $45,095  
(1)  Exclusive of depreciation and amortization.
 At June 30,At December 31,
 20202019
Total assets  
Games$824,031  $902,888  
FinTech660,069  726,335  
Total assets$1,484,100  $1,629,223  
Major Customers. No single customer accounted for more than 10% of our revenues for the three and six months ended June 30, 2020 and 2019. Our five largest customers accounted for approximately 23% and 15% of our revenues for the three and six months ended June 30, 2020, respectively, and approximately 15% and 14% of our revenues for the three and six months ended June 30, 2019, respectively.
v3.20.2
SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2020
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTSAs of the filing date, we had not identified, and were not aware of, any subsequent event for the period.
v3.20.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Policies)
6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
Our unaudited condensed consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Some of the information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. The results for the three and six months ended June 30, 2020 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 2019 Annual Report.
Overall - 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 adjust it, 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 cash collections differs from when revenue is recognized due to contracts containing specific performance obligations that are required to be met prior to a customer being invoiced. We generally record contract liabilities when cash is collected in advance of us satisfying performance obligations, including those that are satisfied over a period of time. Balances of our contract assets and contract liabilities may fluctuate due to timing of cash collections.
The following table summarizes our contract assets and contract liabilities arising from contracts with customers:
Six Months Ended June 30,
20202019
Contract assets(1)
Balance at January 1 — current$8,634  $6,821  
Balance at January 1 — non-current6,774  4,489  
Total
15,408  11,310  
Balance at June 30 - current8,392  7,785  
Balance at June 30 - non-current7,754  5,618  
Total
16,146  13,403  
         Increase $738  $2,093  
Contract liabilities(2)
Balance at January 1 — current$28,510  $14,661  
Balance at January 1 — non-current354  809  
Total
28,864  15,470  
Balance at June 30 - current39,318  29,544  
Balance at June 30 - non-current103  484  
Total
39,421  30,028  
Increase
$10,557  $14,558  
(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, net 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 $17.0 million and $9.1 million in revenue that was included in the beginning contract liability balance during the six months ended June 30, 2020 and 2019, respectively.
Games Revenues
Our products and services include electronic gaming devices, such as Native American Class II offerings and other electronic bingo products, Class III slot machine offerings, VLTs, B2B and B2C digital online gaming activities, accounting and central determinant systems, and other back office systems. We conduct our Games segment business based on results generated from the following major revenue streams: (a) Gaming Operations; (b) Gaming Equipment and Systems; and (c) 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 $10.4 million and $44.4 million for the three and six months ended June 30, 2020, respectively and $33.8 million and $67.6 million for the three and six months ended June 30, 2019, respectively.
FinTech Revenues
Our FinTech products and services include solutions that we offer to gaming establishments to provide their patrons with cash access-related services, self-service player loyalty and marketing tools, and other information-related products and services. These solutions include: access to cash at gaming facilities via ATM cash withdrawals, credit card cash access transactions, and POS debit card purchase and cash access transactions; check warranty services; self-service ATMs and fully integrated kiosks and maintenance services; self-service player loyalty enrollment and marketing equipment, including promotion management software and tools; 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: (a) Cash Access Services; (b) Equipment; and (c) Information Services and Other.
Equipment revenues are derived from the sale of our cash access and loyalty kiosks and related equipment and are accounted for under ASC 606, unless such transactions meet the definition of a sales type or direct financing lease, which are accounted for under ASC 842. We did not have any new cash access kiosk and related equipment sales contracts accounted for under ASC 842 during the three and six months ended June 30, 2020. Sales contracts accounted for under ASC 842 were approximately $2.6 million for the three and six months ended June 30, 2019.
Restricted Cash Restricted CashOur restricted cash primarily consists of: (a) funds held in connection with certain customer agreements; (b) deposits held in connection with a sponsorship agreement; (c) wide area progressive (“WAP”)-related restricted funds; and (d) Internet-related cash access activities
Goodwill
Goodwill

Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. We test for impairment annually on a reporting unit basis, at the beginning of our fourth fiscal quarter and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The annual impairment test is completed using either: a qualitative “Step 0” assessment based on reviewing relevant events and circumstances; or a quantitative “Step 1” assessment, which determines the fair value of the reporting unit, using both an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether or not any impairment exists. To the extent the carrying amount of a reporting unit is less than its estimated fair value, an impairment charge is recorded.

The evaluation of impairment of goodwill requires the use of estimates about future operating results. Changes in forecasted operations can materially affect these estimates, which could materially affect our results of operations and financial condition. The estimates of expected future cash flows require significant judgment and are based on assumptions we determined to be
reasonable; however, they are unpredictable and inherently uncertain, including, estimates of future growth rates, operating margins and assumptions about the overall economic climate as well as the competitive environment within which we operate. There can be no assurance that our estimates and assumptions made for purposes of our impairment assessments as of the time of evaluation will prove to be accurate predictions of the future. If our assumptions regarding business plans, competitive environments, or anticipated growth rates are not correct, we may be required to record non-cash impairment charges in future periods, whether in connection with our normal review procedures periodically, or earlier, if an indicator of an impairment is present prior to such evaluation.Our reporting units are identified as operating segments or one level below. Reporting units must: (a) engage in business activities from which they earn revenues and incur expenses; (b) 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 (c) 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 the long-term accounts payable is estimated by discounting the total obligation using the appropriate interest rate.
Recent Accounting Guidance Recently Adopted Accounting Guidance
StandardDescriptionDate of AdoptionEffect on Financial Statements
Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments
This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects lifetime expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.January 1, 2020
This guidance primarily impacts our trade and other receivables, including those related to revenues from contracts with customers that may contain contract assets with respect to performance obligations that are satisfied for which the customers have not yet been invoiced. We adopted this guidance using the modified retrospective method. The adoption of ASC 326 did not have a material effect on our Financial Statements and did not result in a cumulative-effect adjustment. Refer to “Note 6 — Trade and Other Receivables” for further discussion.
ASU No. 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract
This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license).January 1, 2020The adoption of this ASU did not have a material effect on our Financial Statements or on our disclosures.
ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting
This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting for contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”).
March 12, 2020The adoption of this ASU did not have a material effect on our Financial Statements or on our disclosures.
Recent Accounting Guidance Not Yet Adopted
StandardDescriptionDate of Planned AdoptionEffect on Financial Statements
ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
This ASU simplifies the accounting for income taxes by removing certain exceptions for investments, intraperiod allocations, and interim calculations, and adds guidance to reduce the complexity of applying Topic 740.January 1, 2021We are currently evaluating the impact of adopting this ASU on our Financial Statements and our disclosures; however, we do not expect the impact to be material.
We do not anticipate recently issued accounting guidance to have a significant impact on our Financial Statements as of June 30, 2020.
v3.20.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
Contract Asset and Liability
The following table summarizes our contract assets and contract liabilities arising from contracts with customers:
Six Months Ended June 30,
20202019
Contract assets(1)
Balance at January 1 — current$8,634  $6,821  
Balance at January 1 — non-current6,774  4,489  
Total
15,408  11,310  
Balance at June 30 - current8,392  7,785  
Balance at June 30 - non-current7,754  5,618  
Total
16,146  13,403  
         Increase $738  $2,093  
Contract liabilities(2)
Balance at January 1 — current$28,510  $14,661  
Balance at January 1 — non-current354  809  
Total
28,864  15,470  
Balance at June 30 - current39,318  29,544  
Balance at June 30 - non-current103  484  
Total
39,421  30,028  
Increase
$10,557  $14,558  
(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, net in our Balance Sheets.
(2)  The current portion of contract liabilities is included within accounts payable and accrued expenses, and the non-current portion is included within other accrued expenses and liabilities in our Balance Sheets.
Reconciliation of Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows for the six months ended June 30, 2020.
Classification on our Balance Sheets
At June 30, 2020At December 31, 2019
Cash and cash equivalentsCash and cash equivalents$257,430  $289,870  
Restricted cash - currentPrepaid expenses and other current assets291  6,639  
Restricted cash - non-currentOther assets101  101  
Total
$257,822  $296,610  
Reconciliation of Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows for the six months ended June 30, 2020.
Classification on our Balance Sheets
At June 30, 2020At December 31, 2019
Cash and cash equivalentsCash and cash equivalents$257,430  $289,870  
Restricted cash - currentPrepaid expenses and other current assets291  6,639  
Restricted cash - non-currentOther assets101  101  
Total
$257,822  $296,610  
Estimated fair value and outstanding balances of borrowings The estimated fair value and outstanding balances of our borrowings are as follows (in thousands):
 Level of HierarchyFair ValueOutstanding Balance
June 30, 2020   
Term loan2$697,180  $735,500  
Incremental term loan2$127,500  $125,000  
Revolving credit facility
2$33,177  $35,000  
Senior unsecured notes2$273,252  $285,381  
December 31, 2019   
Term loan2$753,494  $749,000  
Senior unsecured notes2$401,738  $375,000  
v3.20.2
LEASES - (Tables)
6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Balance Sheet Information
Supplemental balance sheet information related to our operating leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2020At December 31, 2019
Assets
Operating lease ROU assetsOther assets, non-current$9,782  $12,257  
Liabilities(1)
Current operating lease liabilitiesAccounts payable and accrued expenses$6,167  $5,824  
Non-current operating lease liabilitiesOther accrued expenses and liabilities$7,362  $9,628  
(1) The amount of operating lease liabilities recorded on our Balance Sheets upon the adoption of ASC 842 on January 1, 2019 was approximately $18.0 million.
Cash Flow Information
Supplemental cash flow information related to leases is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Cash paid for long- and short-term leases$2,462  $2,029  $4,250  $3,717  
Operating lease ROU assets obtained in exchange for lease obligations(1)
$156  $—  $860  $15,132  
(2)
(1) The amounts exclude amortization for the period.
(2) The amount includes approximately $0.9 million of operating lease ROU assets obtained in exchange for new lease obligations entered into during the six months ended June 30, 2020. The amount includes approximately $14.1 million of operating lease ROU assets obtained in exchange for existing lease obligations due to the adoption of ASC 842 and $1.1 million of operating lease ROU assets obtained in exchange for new lease obligations entered into during the six months ended June 30, 2019. There were no material new operating lease ROU assets obtained in exchange for lease obligations during the three months ended June 30, 2020 or 2019.
Lease Costs
Other information related to lease terms and discount rates is as follows:
At June 30, 2020At December 31, 2019
Weighted average remaining lease term (in years)2.402.96
Weighted average discount rate5.25 %5.25 %
Components of lease expense, which are included in operating expenses, are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Lease Cost:
Operating lease cost$1,365  $1,331  $2,737  $2,275  
Variable lease cost $468  $400  $912  $839  
Payments Due
Maturities of lease liabilities are summarized as follows as of June 30, 2020 (in thousands):
Year Ending December 31, Amount
2020 (excluding the six months ended June 30, 2020)$3,364  
20215,511  
20223,219  
20231,562  
2024564  
Thereafter328  
Total future minimum lease payments $14,548  
Amount representing interest 1,019  
Present value of future minimum lease payments$13,529  
Current operating lease obligations6,167  
Long-term lease obligations$7,362  
Sales-type lease
Supplemental balance sheet information related to our sales-type leases is as follows (in thousands):
Classification on our Balance SheetsAt June 30, 2020At December 31, 2019
Assets
Net investment in sales-type leases — currentTrade and other receivables, net$885  $874  
Net investment in sales-type leases — non-currentOther receivables$861  $1,288  
v3.20.2
TRADE AND OTHER RECEIVABLES - (Tables)
6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Schedule of components of trade and other receivables
The balance of trade and other receivables consisted of the following (in thousands):
 At June 30,At December 31,
20202019
Trade and other receivables, net  
Games trade and loans receivable
$33,533  $51,651  
FinTech trade and loans receivable
26,906  23,723  
Contract assets
16,146  15,408  
Insurance settlement receivable(1)
7,650  7,650  
Other receivables
848  3,977  
Net investment in sales-type leases
1,746  2,162  
Total trade and other receivables, net86,829  104,571  
Non-current portion of receivables  
Games trade and loans receivable
(1,335) (1,018) 
FinTech trade and loans receivable
(6,146) (7,581) 
Contract assets
(7,754) (6,774) 
Net investment in sales-type leases
(861) (1,288) 
Total non-current portion of receivables(16,096) (16,661) 
Total trade and other receivables, current portion$70,733  $87,910  
(1) Refer to “Note 13 — Commitments and Contingencies” for a discussion on the insurance settlement receivable.
Activity in Allowance for Credit Losses
The activity in our allowance for credit losses for the six months ended June 30, 2020 and 2019 is as follows:
Six Months Ended June 30,
20202019
Beginning allowance for credit losses$(5,786) $(6,425) 
Provision(4,981) (5,912) 
Charge-offs and recoveries8,162  5,692  
Ending allowance for credit losses$(2,605) $(6,645) 
v3.20.2
INVENTORY - (Tables)
6 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]  
Schedule of components of inventory
Inventory consisted of the following (in thousands): 
 At June 30,At December 31,
 20202019
Inventory  
Component parts, net of reserves of $3,881 and $2,007 at June 30, 2020 and December 31, 2019, respectively
$24,008  $24,864  
Work-in-progress
1,861  94  
Finished goods
7,971  1,616  
Total inventory
$33,840  $26,574  
v3.20.2
PREPAID EXPENSES AND OTHER ASSETS - (Tables)
6 Months Ended
Jun. 30, 2020
Prepaid Expense and Other Assets [Abstract]  
Schedule of components of current portion of prepaid and other assets
The balance of the current portion of prepaid expenses and other assets consisted of the following (in thousands):
 At June 30,At December 31,
 20202019
Prepaid expenses and other current assets  
Prepaid expenses
$14,595  $11,272  
Restricted cash(1)
291  6,639  
Deposits
2,988  8,501  
Other
1,566  1,484  
Total prepaid expenses and other current assets
$19,440  $27,896  
(1) Refer to “Note 2 — Basis of Presentation and Summary of Significant Accounting Policies” for discussion on the composition of the restricted cash balance.
Schedule of components of non-current portion of prepaid and other assets
The balance of the non-current portion of other assets consisted of the following (in thousands): 
 At June 30,At December 31,
 20202019
Other assets  
Operating lease ROU assets
$9,782  $12,257  
Prepaid expenses and deposits
5,573  7,378  
Debt issuance costs of revolving credit facility
362  460  
Other
469  244  
Total other assets
$16,186  $20,339  
v3.20.2
PROPERTY AND EQUIPMENT - (Tables)
6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]  
Schedule of components of property, equipment and leased assets
Property and equipment consists of the following (dollars in thousands): 
  At June 30, 2020At December 31, 2019
Useful Life
(Years)
CostAccumulated
Depreciation
Net Book
Value
CostAccumulated
Depreciation
Net Book
Value
Property and equipment       
Rental pool - deployed
2-4
$199,643  $118,763  $80,880  $196,571  $106,888  $89,683  
Rental pool - undeployed
2-4
20,505  14,170  6,335  31,901  22,970  8,931  
FinTech equipment
3-5
30,232  22,567  7,665  29,947  22,114  7,833  
Leasehold and building improvementsLease Term10,907  7,729  3,178  11,815  8,150  3,665  
Machinery, office, and other equipment
2-5
43,847  28,909  14,938  48,860  30,103  18,757  
Total
 $305,134  $192,138  $112,996  $319,094  $190,225  $128,869  
v3.20.2
GOODWILL AND OTHER INTANGIBLE ASSETS - (Tables)
6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of other intangible assets
Other intangible assets consist of the following (dollars in thousands): 
  At June 30, 2020At December 31, 2019
Useful Life
(Years)
CostAccumulated
Amortization
Net Book
Value
CostAccumulated
Amortization
Net Book
Value
Other intangible assets       
Contract rights under placement fee agreements
3-7
$58,351  $25,015  $33,336  $58,516  $20,888  $37,628  
Customer contracts
3-14
71,975  51,940  20,035  71,975  49,477  22,498  
Customer relationships
3-7
231,100  116,067  115,033  231,100  105,584  125,516  
Developed technology and software
1-6
304,792  233,840  70,952  314,343  224,274  90,069  
Patents, trademarks, and other
2-18
19,682  17,023  2,659  19,682  16,206  3,476  
Total$685,900  $443,885  $242,015  $695,616  $416,429  $279,187  
v3.20.2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES - (Tables)
6 Months Ended
Jun. 30, 2020
Payables and Accruals [Abstract]  
Schedule of accounts payable and accrued expenses
The following table presents our accounts payable and accrued expenses (in thousands):
 At June 30,At December 31,
 20202019
Accounts payable and accrued expenses  
Trade accounts payable
$49,908  $78,627  
Contract liabilities
39,318  28,510  
Litigation accrual(1)
14,000  14,000  
Contingent consideration and acquisition-related liabilities(2)
19,490  14,902  
Accrued interest
1,453  1,347  
Operating lease liabilities
6,167  5,824  
Payroll and related expenses
11,655  18,058  
Cash access processing and related expenses
1,615  5,511  
Other
2,354  3,893  
Accrued taxes
1,679  1,846  
Placement fees
—  585  
Total accounts payable and accrued expenses
$147,639  $173,103  
(1) Refer to “Note 13 — Commitments and Contingencies” for discussion on this legal matter.
(2) Refer to “Note 4 — Business Combinations” for discussion on the contingent consideration and acquisition-related liabilities.
v3.20.2
LONG-TERM DEBT - (Tables)
6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Schedule of outstanding indebtedness
The following table summarizes our outstanding indebtedness (in thousands):
 MaturityInterestAt June 30,At December 31,
 DateRate20202019
Long-term debt  
$820 million Term Loan Facility
2024
LIBOR+2.75%
$735,500  $749,000  
$125 million Incremental Term Loan Facility
2024
LIBOR+10.50%
125,000  —  
$35 million Revolving Credit Facility
2022
LIBOR+4.50%
35,000  —  
Senior Secured Credit Facilities
895,500  749,000  
$375 million 2017 Unsecured Notes
20257.50%285,381  375,000  
Total debt
1,180,881  1,124,000  
Debt issuance costs and discount(18,251) (15,922) 
Total debt after debt issuance costs and discount
1,162,630  1,108,078  
Current portion of long-term debt(1,250) —  
Total long-term debt, net of current portion$1,161,380  $1,108,078  
v3.20.2
WEIGHTED AVERAGE COMMON SHARES - (Tables)
6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Schedule of weighted average number of common shares outstanding used in computation of basic and diluted earnings per share
The weighted average number of shares of common stock outstanding used in the computation of basic and diluted earnings per share is as follows (in thousands): 
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Weighted average shares  
Weighted average number of common shares outstanding - basic85,122  71,477  84,873  70,909  
Potential dilution from equity awards(1)
—  7,681  —  6,302  
Weighted average number of common shares outstanding - diluted(1)
85,122  79,158  84,873  77,211  
(1)  We were in a net loss position for the three and six months ended June 30, 2020, and therefore, no potential dilution from the application of the treasury stock method was applicable. The potential dilution excludes the weighted average effect of equity awards to purchase approximately 13.6 million and 6.2 million shares of common stock for the three and six months ended June 30, 2020, respectively, as the application of the treasury stock method, as required, makes them anti-dilutive. The potential dilution excludes the weighted average effect of equity awards to purchase approximately 0.1 million and 1.7 million shares of common stock for the three and six months ended June 30, 2019, respectively, as the application of the treasury stock method, as required, makes them anti-dilutive.
v3.20.2
SHARE-BASED COMPENSATION - (Tables)
6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Summary of award activity
A summary of award activity is as follows (in thousands): 
Stock Options GrantedRestricted Stock Units Granted
Outstanding, December 31, 201911,969  3,451  
Granted—  2,163  
Exercised options or vested shares(447) (594) 
Canceled or forfeited(83) (174) 
Outstanding, June 30, 202011,439  4,846  
Summary of options activity
The following table presents the options activity for the six months ended June 30, 2020:
Number of
Options
(in thousands)
Weighted Average
Exercise Price
(per Share)
Weighted
Average Life
Remaining
(Years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding, December 31, 201911,969  $5.06  5.5$100,143  
Granted—   
Exercised(447) $4.73   
Canceled or forfeited(83) $3.93   
Outstanding, June 30, 202011,439  $5.08  4.9$15,242  
Vested and expected to vest, June 30, 202011,371  $5.09  4.9$15,125  
Exercisable, June 30, 202010,447  $5.22  4.8$13,499  
Nonvested Restricted Stock Units Activity Table Text Block The following table presents our RSU awards activity for the six months ended June 30, 2020:
Shares
Outstanding
(in thousands)
Weighted
Average Grant
Date Fair Value
(per share)
Weighted
Average Life
Remaining
(years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding, December 31, 20193,451  $9.05  1.7$46,342  
Granted2,163  $6.07    
Vested(594) $8.86    
Forfeited(174) $9.26    
Outstanding, June 30, 20204,846  $7.73  1.6$24,998  
Vested and expected to vest, June 30, 20203,914  $7.55  1.5$20,197  
v3.20.2
SEGMENT INFORMATION - (Tables)
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Schedule of segment information
The following tables present segment information (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Games  
Revenues  
Gaming operations$13,859  $45,576  $59,545  $89,862  
Gaming equipment and systems6,983  23,412  18,566  46,499  
Gaming other11  391  32  445  
Total revenues$20,853  $69,379  $78,143  $136,806  
Costs and expenses  
Cost of revenues(1)
  
Gaming operations1,681  3,726  6,226  7,850  
Gaming equipment and systems4,071  13,432  10,895  25,961  
Gaming other456  347  456  347  
Cost of revenues6,208  17,505  17,577  34,158  
Operating expenses22,714  15,964  37,519  30,631  
Research and development3,620  5,265  9,816  11,112  
Depreciation14,844  13,489  29,572  26,863  
Amortization15,315  14,604  30,900  28,386  
Total costs and expenses62,701  66,827  125,384  131,150  
Operating (loss) income$(41,848) $2,552  $(47,241) $5,656  
(1) Exclusive of depreciation and amortization.
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
FinTech  
Revenues  
Cash access services$10,034  $39,696  $47,007  $80,528  
Equipment3,404  7,835  9,756  14,863  
Information services and other4,424  12,796  17,118  21,284  
Total revenues$17,862  $60,327  $73,881  $116,675  
Costs and expenses  
Cost of revenues(1)
  
Cash access services511  2,968  4,066  5,665  
Equipment2,014  4,597  5,904  8,927  
Information services and other324  970  1,198  1,928  
Cost of revenues2,849  8,535  11,168  16,520  
Operating expenses18,889  23,203  42,981  43,184  
Research and development1,573  1,407  4,108  3,091  
Depreciation1,450  1,769  2,965  3,184  
Amortization3,980  3,086  7,719  5,601  
Total costs and expenses28,741  38,000  68,941  71,580  
Operating (loss) income$(10,879) $22,327  $4,940  $45,095  
(1)  Exclusive of depreciation and amortization.
 At June 30,At December 31,
 20202019
Total assets  
Games$824,031  $902,888  
FinTech660,069  726,335  
Total assets$1,484,100  $1,629,223  
v3.20.2
BUSINESS - Narrative (Details)
1 Months Ended 3 Months Ended 6 Months Ended
Mar. 31, 2020
USD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
segment
Jun. 30, 2019
USD ($)
Apr. 21, 2020
USD ($)
Debt Instrument [Line Items]          
Number of operating segments | segment     2    
Borrowings under revolving credit facility     $ 35,000,000 $ 0  
Severance costs   $ 2,700,000      
Write-down of assets     $ 11,033,000 $ 843,000  
Games          
Debt Instrument [Line Items]          
Write-down of assets   9,200,000      
FinTech Segment          
Debt Instrument [Line Items]          
Write-down of assets   1,800,000      
Non-Executive Employee | Minimum          
Debt Instrument [Line Items]          
Percentage of reduction in salary     15.00%    
Non-Executive Employee | Maximum          
Debt Instrument [Line Items]          
Percentage of reduction in salary     70.00%    
Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | Senior secured notes          
Debt Instrument [Line Items]          
Principal amount of debt         $ 125,000,000.0
Revolving credit facility | New Credit Agreement, dated May 9, 2017          
Debt Instrument [Line Items]          
Borrowings under revolving credit facility $ 35,000,000.0        
Principal amount of debt   $ 35,000,000 $ 35,000,000    
v3.20.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Disaggregation of Revenue [Line Items]        
Contract with customer liability     $ 17,000 $ 9,100
Total revenues $ 38,715 $ 129,706 $ 152,024 253,481
Contractual terms of trade and loans receivable     12 months  
Games        
Disaggregation of Revenue [Line Items]        
Total revenues 20,853 69,379 $ 78,143 136,806
Games | Gaming operations, leased equipment        
Disaggregation of Revenue [Line Items]        
Total revenues $ 10,400 33,800 $ 44,400 67,600
FinTech Segment | Equipment        
Disaggregation of Revenue [Line Items]        
Revenues   $ 2,600   $ 2,600
v3.20.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Contract Asset and Liability (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Contract assets        
Contract assets, current $ 8,392 $ 7,785 $ 8,634 $ 6,821
Contract assets, noncurrent 7,754 5,618 6,774 4,489
Total 16,146 13,403 15,408 11,310
Increase 738 2,093    
Contract liabilities        
Contract liabilities, current 39,318 29,544 28,510 14,661
Contract liabilities, noncurrent 103 484 354 809
Total 39,421 30,028 $ 28,864 $ 15,470
Increase $ 10,557 $ 14,558    
v3.20.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Cash (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 257,430 $ 289,870    
Total 257,822 296,610 $ 125,727 $ 299,181
Cash and Cash Equivalents        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents 257,430 289,870    
Prepaid Expenses and Other Current Assets        
Cash and Cash Equivalents [Line Items]        
Restricted cash - current 291 6,639    
Other Assets        
Cash and Cash Equivalents [Line Items]        
Restricted cash - non-current $ 101 $ 101    
v3.20.2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Fair Value and Outstanding Balances of Borrowings (Details) - Level 2 - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Fair Value | Term loan    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt $ 697,180 $ 753,494
Fair Value | Incremental term loan    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 127,500  
Fair Value | Revolving credit facility    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 33,177  
Fair Value | Senior unsecured notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 273,252 401,738
Outstanding Balance | Term loan    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 735,500 749,000
Outstanding Balance | Incremental term loan    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 125,000  
Outstanding Balance | Revolving credit facility    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 35,000  
Outstanding Balance | Senior unsecured notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt $ 285,381 $ 375,000
v3.20.2
LEASES - Additional Information (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Lessee, Lease, Description [Line Items]          
Cost $ 305,134,000   $ 305,134,000   $ 319,094,000
Accumulated Depreciation 192,138,000   192,138,000   $ 190,225,000
Sales-type lease, revenue $ 0 $ 2,600,000 $ 0 $ 2,600,000  
Minimum          
Lessee, Lease, Description [Line Items]          
Renewal term (in years) 1 year   1 year    
Maximum          
Lessee, Lease, Description [Line Items]          
Renewal term (in years) 10 years   10 years    
Assets leased to others          
Lessee, Lease, Description [Line Items]          
Cost $ 199,600,000   $ 199,600,000    
Accumulated Depreciation $ 118,800,000   $ 118,800,000    
v3.20.2
LEASES - Balance Sheet Information (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Jan. 01, 2019
Leases [Abstract]      
Operating lease ROU assets $ 9,782 $ 12,257  
Current operating lease liabilities 6,167 5,824  
Non-current operating lease liabilities 7,362 $ 9,628  
Operating Lease, Liability $ 13,529   $ 18,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] us-gaap:OtherAssets us-gaap:OtherAssets  
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent  
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilitiesNoncurrent us-gaap:OtherLiabilitiesNoncurrent  
v3.20.2
LEASES - Cash Flow Information (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Leases [Abstract]        
Cash paid for long- and short-term leases $ 2,462,000 $ 2,029,000 $ 4,250,000 $ 3,717,000
Operating lease right-of-use assets obtained in exchange for new lease obligations 156,000 0 860,000 15,132,000
ROU assets obtained in exchange for existing lease obligations     $ 14,100,000  
New ROU assets obtained in exchange for existing lease obligations $ 0 $ 0   $ 1,100,000
v3.20.2
LEASES - Lease Costs (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Leases [Abstract]          
Weighted average remaining lease term 2 years 4 months 24 days   2 years 4 months 24 days   2 years 11 months 15 days
Weighted average discount rate 5.25%   5.25%   5.25%
Operating lease cost $ 1,365 $ 1,331 $ 2,737 $ 2,275  
Variable lease cost $ 468 $ 400 $ 912 $ 839  
v3.20.2
LEASES - Payments Due (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Jan. 01, 2019
Leases [Abstract]      
2020 (excluding the six months ended June 30, 2020) $ 3,364    
2021 5,511    
2022 3,219    
2023 1,562    
2024 564    
Thereafter 328    
Total future minimum lease payments 14,548    
Amount representing interest 1,019    
Present value of future minimum lease payments 13,529   $ 18,000
Current operating lease liabilities 6,167 $ 5,824  
Long-term lease obligations $ 7,362 $ 9,628  
v3.20.2
LEASES - Sales-type lease (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Leases [Abstract]    
Net investment in sales-type leases — current $ 885 $ 874
Net investment in sales-type leases — non-current $ 861 $ 1,288
v3.20.2
BUSINESS COMBINATIONS - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Dec. 24, 2021
Jul. 01, 2021
Mar. 08, 2021
Jul. 01, 2020
Apr. 01, 2020
Dec. 24, 2019
Mar. 08, 2019
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Mar. 31, 2019
Business Acquisition [Line Items]                          
Contingent consideration liability               $ 9.6   $ 9.6   $ 9.4  
Atrient                          
Business Acquisition [Line Items]                          
Contingent consideration liability                         $ 9.0
Maximum payout for contingent consideration liability                         $ 10.0
Atrient | FinTech Segment                          
Business Acquisition [Line Items]                          
Payments to acquire businessees             $ 20.0     10.0      
Atrient | FinTech Segment | Forecast                          
Business Acquisition [Line Items]                          
Payments to acquire businessees     $ 10.0                    
Micro Gaming Technologies, Inc.                          
Business Acquisition [Line Items]                          
Revenue attributed to acquiree               $ 1.2   $ 3.8      
Pro forma revenue                 $ 133.7   $ 261.0    
Pro forma net income (loss)                 $ 5.4   $ 11.1    
Micro Gaming Technologies, Inc. | FinTech Segment                          
Business Acquisition [Line Items]                          
Payments to acquire businessees         $ 5.0 $ 15.0              
Total consideration transferred           $ 25.0              
Micro Gaming Technologies, Inc. | FinTech Segment | Subsequent Event                          
Business Acquisition [Line Items]                          
Payments to acquire businessees       $ 5.0                  
Micro Gaming Technologies, Inc. | FinTech Segment | Forecast                          
Business Acquisition [Line Items]                          
Payments to acquire businessees $ 5.0 $ 5.0                      
v3.20.2
FUNDING AGREEMENTS - Narrative (Details) - Indemnification Guarantee - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Contract Cash Solutions Agreement          
Funding Agreements          
Cash usage fees incurred $ 200,000 $ 1,900,000 $ 1,700,000 $ 3,700,000  
Outstanding balance 319,400,000   319,400,000   $ 292,600,000
Contract Cash Solutions Agreement, as amended          
Funding Agreements          
Maximum amount $ 300,000,000   300,000,000    
Ability to increase maximum amount     $ 75,000,000    
Guarantor obligations, increase period     5 days    
Guarantor obligations, non-renewal notice period     90 days    
v3.20.2
TRADE AND OTHER RECEIVABLES - Balance of Trade and Other Receivables (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Trade and other receivables, net    
Contract assets $ 16,146 $ 15,408
Insurance settlements receivable 7,650 7,650
Other receivables 848 3,977
Net investment in sales-type leases 1,746 2,162
Total trade and other receivables, net 86,829 104,571
Non-current portion of receivables (16,096) (16,661)
Contract assets (7,754) (6,774)
Net investment in sales-type leases (861) (1,288)
Total trade and other receivables, current portion 70,733 87,910
Gaming operations    
Trade and other receivables, net    
Trade receivables, net 33,533 51,651
Non-current portion of receivables (1,335) (1,018)
FinTech    
Trade and other receivables, net    
Trade receivables, net 26,906 23,723
Non-current portion of receivables $ (6,146) $ (7,581)
v3.20.2
TRADE AND OTHER RECEIVABLES - Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning allowance for credit losses $ (5,786) $ (6,425)
Provision (4,981) (5,912)
Charge-offs and recoveries 8,162 5,692
Ending allowance for credit losses $ (2,605) $ (6,645)
v3.20.2
INVENTORY (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Inventory    
Component parts, net of reserves of $3,881 and $2,007 at June 30, 2020 and December 31, 2019, respectively $ 24,008 $ 24,864
Work-in-progress 1,861 94
Finished goods 7,971 1,616
Total inventory 33,840 26,574
Component parts, reserves $ 3,881 $ 2,007
v3.20.2
PREPAID EXPENSES AND OTHER ASSETS - Narrative (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Prepaid expenses and other current assets    
Prepaid expenses $ 14,595 $ 11,272
Restricted cash 291 6,639
Deposits 2,988 8,501
Other 1,566 1,484
Total prepaid expenses and other current assets 19,440 27,896
Other assets    
Operating lease ROU assets 9,782 12,257
Prepaid expenses and deposits 5,573 7,378
Debt issuance costs of revolving credit facility 362 460
Other 469 244
Total other assets $ 16,186 $ 20,339
v3.20.2
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Property, Plant and Equipment [Line Items]          
Cost $ 305,134   $ 305,134   $ 319,094
Accumulated Depreciation 192,138   192,138   190,225
Net Book Value 112,996   112,996   128,869
Depreciation 16,294 $ 15,258 32,537 $ 30,047  
FinTech          
Property, Plant and Equipment [Line Items]          
Depreciation 1,450 $ 1,769 2,965 $ 3,184  
Rental pool - deployed          
Property, Plant and Equipment [Line Items]          
Cost 199,643   199,643   196,571
Accumulated Depreciation 118,763   118,763   106,888
Net Book Value 80,880   $ 80,880   89,683
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 20,505   $ 20,505   31,901
Accumulated Depreciation 14,170   14,170   22,970
Net Book Value 6,335   $ 6,335   8,931
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    
Leasehold and building improvements          
Property, Plant and Equipment [Line Items]          
Cost 10,907   $ 10,907   11,815
Accumulated Depreciation 7,729   7,729   8,150
Net Book Value 3,178   3,178   3,665
Machinery, office, and other equipment          
Property, Plant and Equipment [Line Items]          
Cost 43,847   43,847   48,860
Accumulated Depreciation 28,909   28,909   30,103
Net Book Value 14,938   14,938   18,757
Machinery, office, and other equipment | FinTech          
Property, Plant and Equipment [Line Items]          
Cost 30,232   30,232   29,947
Accumulated Depreciation 22,567   22,567   22,114
Net Book Value $ 7,665   $ 7,665   $ 7,833
Machinery, office, and other equipment | Minimum          
Property, Plant and Equipment [Line Items]          
Useful Life (Years)     2 years    
Machinery, office, and other equipment | Minimum | FinTech          
Property, Plant and Equipment [Line Items]          
Useful Life (Years)     3 years    
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    
v3.20.2
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Funding Agreements          
Goodwill $ 681,531   $ 681,531   $ 681,635
Amortization of Intangible Assets 19,300 $ 17,700 38,600 $ 34,000  
Placement Fee 300 6,500 900 12,100  
Imputed interest in placement fees   $ 200   500  
Write-down of assets     11,033 $ 843  
Games          
Funding Agreements          
Goodwill $ 449,000   $ 449,000    
Fair value cushion 10.00%   10.00%    
Write-down of assets $ 9,200        
FinTech Segment          
Funding Agreements          
Write-down of assets $ 1,800        
Software Developed          
Funding Agreements          
Write-down of assets     $ 5,900    
Software Developed | Games          
Funding Agreements          
Write-down of assets     5,500    
Software Developed | FinTech Segment          
Funding Agreements          
Write-down of assets     $ 400    
v3.20.2
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]    
Cost $ 685,900 $ 695,616
Accumulated Amortization 443,885 416,429
Net Book Value 242,015 279,187
Contract rights under placement fee agreements    
Finite-Lived Intangible Assets [Line Items]    
Cost 58,351 58,516
Accumulated Amortization 25,015 20,888
Net Book Value $ 33,336 37,628
Contract rights under placement fee agreements | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 3 years  
Contract rights under placement fee agreements | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 7 years  
Customer contracts    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 71,975 71,975
Accumulated Amortization 51,940 49,477
Net Book Value $ 20,035 22,498
Customer contracts | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 3 years  
Customer contracts | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 14 years  
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 231,100 231,100
Accumulated Amortization 116,067 105,584
Net Book Value $ 115,033 125,516
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) 7 years  
Developed technology and software    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 304,792 314,343
Accumulated Amortization 233,840 224,274
Net Book Value $ 70,952 90,069
Developed technology and software | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 1 year  
Developed technology and software | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 6 years  
Patents, trademarks, and other    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 19,682 19,682
Accumulated Amortization 17,023 16,206
Net Book Value $ 2,659 $ 3,476
Patents, trademarks, and other | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 2 years  
Patents, trademarks, and other | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Useful Life (Years) 18 years  
v3.20.2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Payables and Accruals [Abstract]        
Trade accounts payable $ 49,908,000 $ 78,627,000    
Contract liabilities 39,318,000 28,510,000 $ 29,544,000 $ 14,661,000
Litigation accrual 14,000,000.0 14,000,000    
Contingent consideration and acquisition-related liabilities 19,490,000 14,902,000    
Accrued interest 1,453,000 1,347,000    
Operating lease liabilities 6,167,000 5,824,000    
Payroll and related expenses 11,655,000 18,058,000    
Cash access processing and related expenses 1,615,000 5,511,000    
Other 2,354,000 3,893,000    
Accrued taxes 1,679,000 1,846,000    
Placement fees 0 585,000    
Accounts payable and accrued expenses $ 147,639,000 $ 173,103,000    
v3.20.2
LONG-TERM DEBT - Summary of Indebtedness (Details) - USD ($)
6 Months Ended
Jun. 30, 2020
Apr. 21, 2020
Dec. 31, 2019
Dec. 31, 2017
May 09, 2017
Debt Instrument [Line Items]          
Total debt $ 1,180,881,000   $ 1,124,000,000    
Debt issuance costs and discount (18,251,000)   (15,922,000)    
Total debt after debt issuance costs and discount 1,162,630,000   1,108,078,000    
Current portion of long-term debt (1,250,000)   0    
Total long-term debt, net of current portion 1,161,380,000   1,108,078,000    
Senior secured term loan facility | New Credit Agreement, dated May 9, 2017          
Debt Instrument [Line Items]          
Total debt $ 735,500,000   749,000,000    
Principal amount of debt         $ 820,000,000.0
Senior secured term loan facility | New Credit Agreement, dated May 9, 2017 | London Interbank Offered Rate (LIBOR)          
Debt Instrument [Line Items]          
Basis spread 2.75%        
Incremental term loan | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty          
Debt Instrument [Line Items]          
Total debt $ 125,000,000   0    
Principal amount of debt $ 125,000,000        
Incremental term loan | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | London Interbank Offered Rate (LIBOR)          
Debt Instrument [Line Items]          
Basis spread 10.50%        
Revolving credit facility | New Credit Agreement, dated May 9, 2017          
Debt Instrument [Line Items]          
Total debt $ 35,000,000   0    
Principal amount of debt $ 35,000,000        
Revolving credit facility | New Credit Agreement, dated May 9, 2017 | London Interbank Offered Rate (LIBOR)          
Debt Instrument [Line Items]          
Basis spread 4.50%        
Senior unsecured notes | 2017 Unsecured Notes          
Debt Instrument [Line Items]          
Total debt $ 285,381,000   375,000,000    
Principal amount of debt       $ 375,000,000  
Interest rate (as a percent)       7.50%  
Senior secured notes          
Debt Instrument [Line Items]          
Total debt $ 895,500,000   $ 749,000,000    
Senior secured notes | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty          
Debt Instrument [Line Items]          
Principal amount of debt   $ 125,000,000.0      
v3.20.2
LONG-TERM DEBT - Narrative (Details)
1 Months Ended 3 Months Ended 6 Months Ended
Apr. 21, 2020
USD ($)
$ / shares
shares
May 09, 2017
USD ($)
Mar. 31, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2019
USD ($)
Jan. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2017
USD ($)
Debt Instrument [Line Items]                      
Borrowings under revolving credit facility             $ 35,000,000 $ 0      
Long-term debt       $ 1,162,630,000     1,162,630,000     $ 1,108,078,000  
Repayments of unsecured notes             89,619,000 0      
Loss on extinguishment of debt       80,000   $ 0 7,457,000 $ 0      
Senior unsecured notes | FinTech Segment                      
Debt Instrument [Line Items]                      
Principal amount of debt       $ 285,400,000     285,400,000        
2017 Unsecured Notes                      
Debt Instrument [Line Items]                      
Repayments of unsecured notes         $ 5,100,000            
Loss on extinguishment of debt             6,400,000        
2017 Unsecured Notes | Senior unsecured notes                      
Debt Instrument [Line Items]                      
Principal amount of debt                     $ 375,000,000
Interest rate (as a percent)                     7.50%
2017 Unsecured Notes | Senior unsecured notes | FinTech Segment                      
Debt Instrument [Line Items]                      
Long-term debt                 $ 84,500,000    
Non-Cash Charge                      
Debt Instrument [Line Items]                      
Loss on extinguishment of debt             $ 1,100,000        
Credit Agreement Dated Twenty One April Two Thousand Twenty                      
Debt Instrument [Line Items]                      
Leverage ratio 4.50                    
Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | Sagard Credit Partners, LP | Common Stock                      
Debt Instrument [Line Items]                      
Number of shares called by warrants | shares 184,670                    
Exercise price per share | $ / shares $ 5.37                    
Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | Sagard Credit Partners (Cayman), LP | Common Stock                      
Debt Instrument [Line Items]                      
Number of shares called by warrants | shares 40,330                    
Exercise price per share | $ / shares $ 5.37                    
Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | Senior secured notes                      
Debt Instrument [Line Items]                      
Principal amount of debt $ 125,000,000.0                    
Debt term 7 years                    
Senior secured term loan facility | New Credit Agreement, dated May 9, 2017                      
Debt Instrument [Line Items]                      
Principal amount of debt   $ 820,000,000.0                  
Debt term   7 years                  
Weighted average interest rate during period (as a percent)       3.82%     4.13%        
Senior secured term loan facility | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty                      
Debt Instrument [Line Items]                      
Voluntary prepayments period subject to make-whole premium 2 years                    
Period after second anniversary subject to premium 6 months                    
Prepayment penalty 1.00%                    
Revolving credit facility | New Credit Agreement, dated May 9, 2017                      
Debt Instrument [Line Items]                      
Principal amount of debt       $ 35,000,000     $ 35,000,000        
Debt term   5 years                  
Borrowings under revolving credit facility     $ 35,000,000.0                
Weighted average interest rate during period (as a percent)       5.50%     5.53%        
Eurodollar Borrowings | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | Eurodollar                      
Debt Instrument [Line Items]                      
Basis spread 10.50%                    
Base Rate Borrowings | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty | Base Rate                      
Debt Instrument [Line Items]                      
Basis spread 9.50%                    
Incremental term loan | Incremental Term Loan Credit Agreement Dated Twenty One April Two Thousand Twenty                      
Debt Instrument [Line Items]                      
Principal amount of debt       $ 125,000,000     $ 125,000,000        
Weighted average interest rate during period (as a percent)       11.50%              
v3.20.2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]    
Litigation accrual $ 14,000,000.0 $ 14,000,000
Expected recovery $ 7,700,000  
v3.20.2
STOCKHOLDERS' EQUITY - Narrative (Details)
Feb. 29, 2020
USD ($)
February Twenty Twenty Stock Repurchase Program  
Class of Stock [Line Items]  
Stock repurchase program, authorized amount $ 10,000,000.0
v3.20.2
WEIGHTED AVERAGE COMMON SHARES - Narrative (Details) - shares
shares in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Weighted average common shares outstanding        
Weighted average number of common shares outstanding - basic (in shares) 85,122 71,477 84,873 70,909
Potential dilution from equity awards (in shares) 0 7,681 0 6,302
Weighted average number of common shares outstanding - diluted (in shares) 85,122 79,158 84,873 77,211
Anti-dilutive equity awards excluded from computation of earnings per share (in shares) 13,600 100 6,200 1,700
v3.20.2
SHARE-BASED COMPENSATION - Award Activity (Details)
6 Months Ended
Jun. 30, 2020
shares
Jun. 30, 2019
shares
Stock Options    
Stock Options Granted    
Outstanding (in shares) 11,969,000  
Granted (in shares) 0  
Exercised options (in shares) (447,000)  
Canceled or forfeited (in shares) (83,000)  
Outstanding (in shares) 11,439,000  
Restricted Stock Units    
Restricted Stock Granted    
Outstanding (in shares) 3,451,000  
Granted (in shares) 2,163,000 2,000,000.0
Vested (in shares) (594,016) (277,802)
Canceled or forfeited (in shares) (174,000)  
Outstanding (in shares) 4,846,000  
Common Stock    
Restricted Stock Granted    
Number of shares available for grant 400,000  
v3.20.2
SHARE-BASED COMPENSATION - Stock Options, Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Stock options        
Proceeds from exercise of stock options     $ 2,113 $ 9,450
Time Based Options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period     4 years  
Expiration period     10 years  
Market Performance Based Options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period     4 years  
Number of consecutive trading days the average stock price meets certain target prices, which satisfy vesting requirements     30 days  
Expiration period     10 years  
Stock Options        
Stock options        
Options exercised, intrinsic value $ 400 $ 4,200 $ 1,700 7,500
Unrecognized compensation expense 800 2,200 $ 800 $ 2,200
Weighted-average period for recognition of unrecognized compensation expense     8 months 12 days 1 year 6 months
Non-cash compensation expense     $ 1,000 $ 1,800
Proceeds from exercise of stock options $ 500 $ 4,800 $ 2,100 $ 9,500
v3.20.2
SHARE-BASED COMPENSATION - Schedule of Stock Options Activity (Details) - Stock Options - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Mar. 31, 2020
Jun. 30, 2020
Dec. 31, 2019
Stock Options Granted      
Outstanding (in shares) 11,969 11,969  
Granted (in shares)   0  
Exercised options (in shares)   (447)  
Canceled or forfeited (in shares)   (83)  
Outstanding (in shares)   11,439  
Vested and expected to vest (in shares)   11,371  
Exercisable (in shares)   10,447  
Weighted Average Exercise Price      
Outstanding (in dollars per share) $ 5.06 $ 5.06  
Granted (in dollars per share)    
Exercised options (in dollars per share)   4.73  
Canceled or forfeited (in dollars per share)   3.93  
Outstanding (in dollars per share)   5.08  
Vested and expected to vest (in dollars per share)   5.09  
Exercisable (in dollars per share)   $ 5.22  
Weighted Average Life Remaining      
Outstanding 5 years 6 months 4 years 10 months 24 days  
Vested and expected to vest   4 years 10 months 24 days  
Exercisable   4 years 9 months 18 days  
Aggregate Intrinsic Value      
Outstanding (in dollars)   $ 15,242 $ 100,143
Vested and expected to vest (in dollars)   15,125  
Exercisable (in dollars)   $ 13,499  
v3.20.2
SHARE-BASED COMPENSATION - Restricted Stock Units (Details) - Restricted Stock Units - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Mar. 31, 2020
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Restricted Stock Granted        
Outstanding (in shares) 3,451,000 3,451,000    
Granted (in shares)   2,163,000 2,000,000.0  
Vested (in shares)   (594,016) (277,802)  
Forfeited (in shares)   (174,000)    
Outstanding (in shares)   4,846,000    
Vested and expected to vest (in shares)   3,914,000    
Weighted Average Grant Date Fair Value        
Outstanding (in dollars per share) $ 9.05 $ 9.05    
Granted (in dollars per share)   6.07    
Vested (in dollars per share)   8.86    
Forfeited (in dollars per share)   9.26    
Outstanding (in dollars per share)   7.73    
Vested and expected to vest (in dollars per share)   $ 7.55    
Weighted Average Life Remaining        
Outstanding 1 year 8 months 12 days 1 year 7 months 6 days    
Vested and expected to vest   1 year 6 months    
Aggregate Intrinsic Value        
Outstanding (in dollars)   $ 24,998   $ 46,342
Vested and expected to vest (in dollars)   $ 20,197    
v3.20.2
SHARE-BASED COMPENSATION - Restricted Stock Units, Narrative (Details) - Restricted Stock Units - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options granted (in shares) 2,163,000 2,000,000.0
Vested (in shares) 594,016 277,802
Unrecognized compensation expense $ 20.7 $ 16.8
Weighted-average period for recognition of unrecognized compensation expense 2 years 2 months 12 days 3 years
Non-cash compensation expense $ 6.1 $ 2.3
Minimum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 3 years  
Maximum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 4 years  
v3.20.2
INCOME TAXES - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Tax Disclosure [Abstract]        
Effective income tax rate (as a percent) 5.70% (23.40%) 5.90% (14.40%)
Statutory federal rate (as a percent)     21.00% 21.00%
Unrecognized tax benefits $ 1.4   $ 1.4  
v3.20.2
SEGMENT INFORMATION - Revenues, Operating Income, and Assets (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Revenues          
Total revenues $ 38,715 $ 129,706 $ 152,024 $ 253,481  
Costs and expenses          
Operating expenses 41,603 39,167 80,501 73,815  
Research and development 5,193 6,672 13,924 14,203  
Depreciation 16,294 15,258 32,537 30,047  
Amortization 19,295 17,690 38,619 33,987  
Total costs and expenses 91,442 104,827 194,326 202,730  
Operating (loss) income (52,727) 24,879 (42,302) 50,751  
Total assets          
Total assets 1,484,100   1,484,100   $ 1,629,223
Games          
Revenues          
Total revenues 20,853 69,379 78,143 136,806  
Costs and expenses          
Cost of revenues 6,208 [1] 17,505 [1] 17,577 34,158  
Operating expenses 22,714 15,964 37,519 30,631  
Research and development 3,620 5,265 9,816 11,112  
Depreciation 14,844 13,489 29,572 26,863  
Amortization 15,315 14,604 30,900 28,386  
Total costs and expenses 62,701 66,827 125,384 131,150  
Operating (loss) income (41,848) 2,552 (47,241) 5,656  
Total assets          
Total assets 824,031   824,031   902,888
Games | Gaming operations          
Revenues          
Total revenues 13,859 45,576 59,545 89,862  
Costs and expenses          
Cost of revenues 1,681 [1] 3,726 [1] 6,226 7,850  
Games | Gaming equipment and systems          
Revenues          
Total revenues 6,983 23,412 18,566 46,499  
Costs and expenses          
Cost of revenues 4,071 [1] 13,432 [1] 10,895 25,961  
Games | Gaming other          
Revenues          
Total revenues 11 391 32 445  
Costs and expenses          
Cost of revenues 456 347 456 347  
FinTech          
Revenues          
Total revenues 17,862 60,327 73,881 116,675  
Costs and expenses          
Cost of revenues 2,849 [1] 8,535 [1] 11,168 16,520  
Operating expenses 18,889 23,203 42,981 43,184  
Research and development 1,573 1,407 4,108 3,091  
Depreciation 1,450 1,769 2,965 3,184  
Amortization 3,980 3,086 7,719 5,601  
Total costs and expenses 28,741 38,000 68,941 71,580  
Operating (loss) income (10,879) 22,327 4,940 45,095  
Total assets          
Total assets 660,069   660,069   $ 726,335
FinTech | Cash access services          
Revenues          
Total revenues 10,034 39,696 47,007 80,528  
Costs and expenses          
Cost of revenues 511 [1] 2,968 [1] 4,066 5,665  
FinTech | Equipment          
Revenues          
Total revenues 3,404 7,835 9,756 14,863  
Costs and expenses          
Cost of revenues 2,014 [1] 4,597 [1] 5,904 8,927  
FinTech | Information services and other          
Revenues          
Total revenues 4,424 12,796 17,118 21,284  
Costs and expenses          
Cost of revenues $ 324 [1] $ 970 [1] $ 1,198 $ 1,928  
[1] (1) Exclusive of depreciation and amortization.
v3.20.2
SEGMENT INFORMATION - Major Customers (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Five largest customers | Customer risk | Revenue from Contract with Customer        
Revenue, Major Customer [Line Items]        
Concentration risk (as a percent) 23.00% 15.00% 15.00% 14.00%