Everi Holdings Stock

Everi Holdings Inc. (Everi) develops and offers products and services that provide gaming entertainment, improve its customers’ patron engagement, and help its casino customers operate their businesses more efficiently. The company develops and supplies entertaining game content, gaming machines and gaming systems and services for land-based and iGaming operators. Everi is a provider of financial technology solutions that power casino floors, improve operational efficiencies, and fulfill regulatory requirements. The company also develops and supplies player loyalty tools and mobile-first applications that enhance patron engagement for its customers and venues in the casino, sports, entertainment, and hospitality industries.

Segments

The company operates through two segments, Games; and Financial Technology Solutions (FinTech).

Everi Games provides gaming operators with gaming technology and entertainment products and services, including gaming machines, primarily comprising Class II, Class III and Historic Horse Racing (HHR) slot machines placed under participation or fixed-fee lease arrangements or sold to casino customers; 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 business-to-business (B2B) digital online gaming activities.

Everi FinTech provides gaming operators with financial technology products and services, including financial access and related services supporting digital, cashless and physical cash options across mobile, assisted and self-service channels; loyalty and marketing software and tools, regulatory and compliance (RegTech) software solutions, other information-related products and services, and hardware maintenance services; and associated casino patron self-service hardware that utilizes its financial access, software and other services. The company also develops and offers mobile-first applications aimed at enhancing patron engagement for customers in the casino, sports, entertainment, and hospitality industries. The company’s solutions are secured using an end-to-end security suite to protect against cyber-related attacks allowing it to maintain appropriate levels of security. These solutions include: access to cash and cashless funding at gaming facilities via Automated Teller Machine (ATM) debit withdrawals, credit card financial access transactions, and point of sale (POS) debit card purchases at casino cages, kiosk and mobile POS devices; accounts for the CashClub Wallet, check warranty services, self-service loyalty and fully integrated kiosk maintenance services; self-service loyalty tools and promotion management software; compliance, audit, and data software; casino credit data and reporting services; marketing and promotional offering subscription-based services; and other ancillary offerings.

Products and Services

Everi Games

The company’s products and services include electronic gaming devices, such as Native American Class II offerings and other electronic bingo products, Class III slot machines and HHR gaming machines placed under participation or fixed-fee lease arrangements, or sold to casino customers, B2B digital online gaming activities, accounting and central determinant systems, and other back-office systems. The company conducts its Games segment business based on results generated from the following major revenue streams, such as Gaming Operations; and Gaming Equipment and Systems.

Gaming Operations

With respect to its Gaming operations revenue stream, the company primarily provides leased gaming equipment, Class II, Class III and HHR offerings, on a revenue participation or a daily fixed-fee basis, including standard games and hardware and premium games and hardware, which include local-area progressive jackpot offerings and wide-area progressive (WAP) jackpot offerings; accounting and central determinant systems; and digital online gaming activities.

In connection with its leased gaming equipment, the company retains ownership of the machines installed at customer facilities. The company receives recurring revenue based on a percentage of the daily win per unit (i.e., cash/coin-in less patron win and jackpots paid) generated by the leased gaming equipment, a percentage of the total cash/coin-in, a daily fixed-fee based upon the number of gaming machines placed or a combination of these methods. The company expects to continue to increase its investment in research and development to innovate and introduce new gaming hardware and theme content; expand its offering of new standard and premium game hardware and theme content; and extend and expand its game placements into new gaming markets and additional jurisdictions. As of December 31, 2022, approximately 11,219 units, or 62.4% of the total installed base, were outside of the Oklahoma tribal market. Additionally, Everi Games has grown its premium game installations, with this portion of games representing approximately 49.0% of its total installed base as of December 31, 2022.

In connection with its WAP offering, machines placed under such arrangements fall into the premium leased gaming equipment category and the company retains ownership of such machines. Spanning multiple product lines, the company’s WAP is offered to customers on the Player Classic, Skyline, Skyline Revolve, Core HDX Renegade, Empire MPX, Empire Flex and Empire DCX cabinets.

Gaming operations also include revenues generated under the company’s arrangement to provide the New York State Gaming Commission with a central determinant, monitoring, and accounting system for the VLTs in operation at licensed state of New York gaming facilities. In November 2019, a new agreement between Everi Games and the New York State Gaming Commission was approved and became effective on January 1, 2020. Under this agreement, Everi Games will provide and maintain the central determinant system for the New York Lottery through December 2029. As of December 31, 2022, there were approximately 17,000 VLTs connected to the company’s central determinant system for the New York Lottery. Pursuant to its agreement with the New York State Gaming Commission, the company receives a portion of the network-wide net win (generally, credits played less free pay allowances and prizes paid to patrons per day) in exchange for provision and maintenance of the central determinant system. The company also provides the central determinant system technology to Native American tribes in other licensed jurisdictions, for which it receives a portion of the revenue generated from the VLTs that are connected to the system.

In connection with its digital online gaming activities, Everi provides the company’s games to business customers, including both regulated real money and social casinos, which offer the games to consumers through their online gaming platforms. Everi has developed its own remote gaming server (RGS) that allows it to deliver a selection of games from the company’s extensive library of land-based and internally developed content to its digital customers in a manner that allows for the game play features and functionality to operate in a manner similar to how these games were designed for its land-based customers. This RGS library contains casino-themed games available for real money gaming (RMG) that are offered to regulated online casinos that operate in the RMG regulated markets, and social games that are offered to the company’s business customers that operate play-for-fun social casinos on their mobile apps and web sites. The company enters into revenue share agreements with these online business customers.

Gaming Equipment and Systems

Gaming equipment and systems revenues are derived from the sale of some combination of gaming equipment and player terminals; game content; license fees; and ancillary equipment, such as signage and lighting packages.

Games Products

The company’s Games products include mechanical and video reel games in Class II, Class III and HHR configurations and are offered in a variety of differentiated cabinets:

Classic Mechanical Reel Games: The company’s full range of classic mechanical reel games provides players with a traditional, high denomination slot gaming experience.

Player Classic/Player Classic Signature: These games leverage the company’s long-standing experience in building enduring brands, such as Black Diamond and Wild Wild Gems, and feature a unique perspective on traditional slot games with eye-catching features, such as Cash Machine™, a three-reel, one-line mechanical slot game that offers ‘win what you see’ gameplay.

Skyline: These games utilize common recognizable light sequencing in the top box in sync with specific game themes, such as Double Jackpot Gems and Triple Double Patriot along with licensed game themes, such as Casper and Smokin’ Hot Stuff.

Skyline Revolve: The company’s premium linked products, such as Cash Machine Jackpots and Gold Standard Jackpots builds upon the skyline cabinet and also includes a mechanical wheel top box and merchandising options for casino operators that can include overhead signage, and wedge kits.

Video Reel Games: The company offers a growing range of dual-screen and portrait single-screen video reel games that provide entertaining slot gaming experience. Below is a list of the company’s video gaming cabinets and select games on these platforms.

Empire 5527: The Empire 5527 cabinet features a portrait-oriented 55-inch upper display and a landscape-oriented 27-inch lower display, game-controlled lighting on the base-game display, and a high-quality sound system. The cabinet is also designed to occupy less space on the casino floor, allowing for more flexible configurations. The Empire 5527 includes the high-performing licensed game Smokin’ Hot Stuff Wicked Wheel. The company expanded the Empire 5527 into a banked product called Empire Arena that offers flexibility in banking configurations for casino operators, with three units and up to a total of eight units. The product is supported by successful game themes – Discovery Channel’s Shark Week, which launched in October 2018, The Vault, which launched in October 2019, along with several follow ups, such as Fruit Ninja. These titles offer base games, as well as competitive community-style bank-wide bonus features.

Empire Flex: The Empire Flex cabinet, released in December 2019, is the latest video cabinet that is part of the Empire Cabinet Series. The cabinet features a 49-inch flexed monitor capable of supporting 4K content, an enlarged glass button deck, and curved LED light bars that are available in standard or extended options. The cabinet officially launched with two games that are part of the Wicked Wheel Series.

Empire DCX. The Empire DCX is a premium video cabinet that features dual curved 43-inch displays that support 4K content with integrated edge lighting, premium 4.1 surround sound, and enhanced game-controlled lighting. The cabinet is available exclusively with licensed brand game themes having launched with Little Shop of Horrors Director’s Cut slot game.

Everi FinTech

The company’s FinTech products and services include solutions that it offers to gaming operators to provide their patrons with financial access and funds-based services supporting digital, cashless and physical cash options across mobile, assisted and self-service channels along with related loyalty and marketing tools, and other information-related products and services. These solutions include access to cash at gaming facilities via ATM debit withdrawals, credit card financial access transactions, and POS debit card purchase at casino cage, kiosk and mobile POS devices; access to cashless funding through the CashClub Wallet and QuikTicket; check warranty services; self-service fully integrated kiosks and related maintenance services; self-service loyalty tools, promotion management software and loyalty kiosks and related maintenance services; compliance, audit, and data software; a credit bureau focused on casino credit with data and reporting services; marketing and promotional based services; and other ancillary offerings.

The company conducts its FinTech segment business based on results generated from the following major revenue streams, such as Financial Access Services; Software and Other; and Hardware.

Financial Access Services

In connection with its Financial Access Services, the company offers the following:

Funds Dispensed. Funds dispensed transactions represent the largest category of electronic payment transactions that the company processes, as measured by dollars processed and transaction volume. In a funds dispensed transaction, a patron directly accesses funds from either a standalone ATM or a device enabled with its funds dispensing service by using a debit card to withdraw funds from the patron’s demand deposit account, using a credit card to access the patron’s line of credit, or disbursing funds authorized by a third party through direct application programming interface integration. In any event, the patron must use the personal identification number (PIN) associated with such card or other accepted authentication method. The company’s system then routes the transaction request through an electronic funds transfer (EFT) network to the patron’s bank or card issuer, or through a third party system, as applicable.

Depending on several factors, including the patron’s account balance, their credit limit and/or the daily withdrawal limits (which limits are often set by the card issuer), the card issuer will either authorize or decline the transaction. In both cases, the company’s service fee is a fixed dollar amount. The company also receives a fee from the card issuer, which it refers to as the interchange reimbursement fee, for accommodating the card issuer’s customer (the patron). In most circumstances, the company pays a percentage of the service fee received from the patron and, in many circumstances, a portion of the interchange reimbursement fees received from the card issuer, as a commission to its gaming operator customers for the right to operate on their premises.

Funds Transmitted: Everi products are also able to transmit funds to a patron’s external bank account or other approved account from physical devices, such as the company’s kiosks or via the CashClub Wallet. These funds may be sent via ACH, the debit card networks, or direct connections with third parties. In all cases, Everi will either charge a fee to the casino operator or share in revenue from the patron where fees are presented to them for the service.

Credit Card Financial Access Transactions and POS Debit Card Financial Access Transactions: The company’s service fee is a fixed dollar amount, a percentage of the transaction size, or a combination of a fixed dollar amount and percentage of the transaction size. The company receives the transaction amount and the service fee from the card issuer, and it reimburses the gaming operator for the cash amount that it provided to the patron, and in addition, will pay the gaming operator a portion of the service fee it collected as a commission for the right to operate on its premises.

Check Warranty Services: Everi provides a check warranty service that allows gaming operators to accept personal and/or payroll checks without the risk of default. When a patron presents a check to the cashier at a gaming operator, the check and patron information is sent through Everi’s system to the company’s third-party partner. The partner evaluates the information and returns to the cashier a warranty limit that a check or multiple checks can be cashed for on that business day. The partner may also return a decline code telling the cashier not to accept the check.

For a gaming operator that subscribes to the check warranty service, Everi will warranty any dishonored check that was approved, eliminating any risk of loss on check acceptance for the gaming operator. Everi’s partner facilitates and manages the check processing, deposits, redeposits, and collections for any checks.

On its behalf, the company’s third-party provider charges its customers a fee for the check warranty services, which is typically a percentage of the face amount of the check being warranted. In such circumstances, the company receives the check warranty revenue associated with the fees it charges its customers for the initial check warranty services

CashClub is a software payments platform that provides gaming operators with a personal computer workstation software user interface and point-of-sale terminal that streamlines credit and debit card financial access transaction processing and check warranty transactions for casino patrons. It allows for electronic signature capture and dynamic currency conversion. Several mobile versions, such as CashClub Concierge, are also available that enable operators to serve their patrons when, where, and how they are needed. It also interfaces with its Everi Compliance solutions (defined below) to assist casino operators with meeting regulatory requirements under Title 31 of the Bank Secrecy Act.

CashClub Wallet is a digital payments platform for gaming operators to offer their patrons a digital cashless method to fund their entertainment experience, including funding at the gaming device, payments at point of sale for retail, online, hotel and food/beverage, igaming, and sports wagering. The wallet allows patrons various funding options including credit card financial access transactions and POS debit card financial access transactions, Automated Clearing House, and E-Check check warranty. It also interfaces with the company’s Everi Compliance solutions (defined below) to assist casino operators with meeting regulatory requirements under Title 31 of the Bank Secrecy Act. The wallet also has capabilities to integrate with its Loyalty platform, including its Enrollment and Promotional kiosks.

Software and Other

JackpotXpress is a full-featured jackpot payout and tax form management and filing platform that allows casino personnel to work through the complex jackpot process using a mobile tablet or kiosk. JackpotXpress allows gaming operators to reduce jackpot payout wait times, increase slot play, eliminate manually filling out cumbersome paper documents, and perform Know Your Customer (KYC) checks. It is fully integrated with the company’s Everi Compliance, CageXchange, and JackpotXchange products. In addition to making jackpot operations more efficient, JackpotXpress also helps operators increase customer engagement which leads to improved loyalty and service.

Loyalty Platform provides a software platform that enables gaming operators to adopt and deliver new promotional strategies to attract, engage, reward, and retain their patrons. Gaming operators utilize the platform to deliver content and promotions on kiosks, tablets, and mobile devices. The software platform integrates with other casino applications to engage with patrons in a more relevant and personalized fashion. The company provides the operators with a control panel to assist with the planning, personalization, and optimization of delivering messages and content via interactions within its platform depending on how much value the casino places on the patron. This allows the company’s customers to unify the patron experience across all touchpoints within the casino and replaces outdated promotional and enrollment tactics by utilizing its content for promotions, drawings, targeted alerts, card signups, reprints, and geo-fencing. By providing a comprehensive set of integrated applications within its platform, the company offers gaming operators the ease of use and simplicity to interact with their patrons. Additionally, the company’s loyalty platform is integrated with other Everi applications for financial access and compliance tools.

Maintenance provides various levels of support and maintenance services for its fully integrated kiosks, loyalty kiosks, and related equipment. The company’s support operations, field service, and customer engagement teams provide quarterly and annual preventative maintenance on these products and software systems to help maximize the efficiency of its products.

Everi Compliance is a leading Anti-money Laundering (AML) management tool for the gaming industry. Everi Compliance encompasses many elements, including filing Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs), and assisting its customers in performing KYC activities. Everi Compliance automates much of the manual processes gaming operators employ to be compliant with those requirements, thus saving time, improving accuracy, and allowing operators to manage their compliance programs much more efficiently. In addition, Everi Compliance gives operators the ability to enter Multiple Transaction Log and Negotiable Instrument Log transactions, file Financial Crimes Enforcement Network (FinCEN) reports electronically, conduct transaction analysis, complete compliance audits, and review reports.

Central Credit is the company’s gaming patron credit bureau service which, on a subscription basis, allows gaming operators to improve their credit-granting decisions by obtaining access to a database containing credit information and transaction data on millions of gaming patrons. The company’s gaming credit reports comprise information recorded from patron credit histories at hundreds of gaming operators. The company provides such information to gaming operators that subscribe to the service. These operators then use that data, among other things, to determine how much credit, if any, they will grant to a gaming patron. The company typically charges its customers for access to gaming patron credit reports on a monthly basis and its fees are generally comprised of a fixed minimum amount plus per-transaction charges for certain requests.

Hardware

Fully Integrated Kiosks are a complete line of products that provide multiple functions to gaming operators on their casino floors. This includes financial access functionality that enables funds dispensed cash withdrawals, POS debit card and credit card financial access transactions directly or by using the company’s patented Seamless Transition technology, which is the Europay, MasterCard, and Visa global standard for cards equipped with security chip technology (EMV). The kiosks also provide functionality to perform check cashing transactions, slot machine ticket redemption, bill breaking, slot ticket purchase from a debit card, and loyalty program access, as well as integration with mobile and wallet technology. The availability of the company’s financial access platform on these slot ticket redemption devices provides it with additional points of contact with gaming patrons at locations that are typically closer to gaming devices than traditional financial access devices that are generally located on the periphery of the gaming area and provides gaming patrons with more opportunities to access their cash with less cashier involvement.

Other Integrated Kiosk Solutions provide casinos with more efficient and streamlined methods for cash handling and transaction processing. These products are designed to be integrated with the company’s financial access products and cage compliance software ensuring compliance with anti-money laundering regulations, and provide an automated way to process common tax forms, such as the Internal Revenue Service Form W-2G or Form 1042-S. In addition, the company offers hardware in the form of standalone, non-funds dispensing terminals that perform authorizations for credit card financial access and POS debit card financial access transactions. The company’s kiosk solutions include the following products:

JackpotXchange family of kiosks, JXC 4.0, and JXC-L, enable casino personnel to efficiently access funds to pay winning slot machine jackpots to their patrons. These kiosks are integrated with all major slot accounting systems to offer jackpot processing and payout in a combination of cash or slot tickets. These kiosks offer gaming operators the ability to reduce workload for cage operations and slot personnel.

CageXchange is a cash dispensing device that helps streamline casino cage operations. With CageXchange, cash is securely vaulted, creating increased security while also reducing cash shrinkage and helping to improve cashier accuracy. Additional efficiencies are achieved from accelerating the process of cage cashiers obtaining money from the vault. CageXchange is integrated with CashClub to create an efficient transaction for casino patrons.

The company’s Cash Recycling Solutions allow casinos to fully automate the check in and check out process of money, saving time and expense. As gaming operators vary in size and complexity, these Cash Recycling Solutions support a number of diverse operations, such as retail, food and beverage, entertainment, and gaming operations.

Loyalty Kiosk and Related Equipment provide gaming operators with self-service loyalty enrollment, player card issuance, and marketing equipment that manages and delivers a gaming operator’s marketing programs through the patron interfaces. This loyalty-related equipment allows the customer to utilize and interact with the loyalty platform as the central hub for all the marketing offerings.

Enrollment Kiosk is a self-service kiosk that allows casino patrons to either sign up for an initial loyalty card or print a replacement card. These kiosks provide an enhanced level of customer service when the club desk is busy or closed by creating patron self-service locations throughout the casino floor without costly infrastructure or additional overhead costs. Such kiosks also assist with updating contact information of card holders and to verify email or phone contact with a two-step verification process.

Promotional Kiosk is a kiosk that engages casino patrons with the casino’s loyalty programs, unifying patron service functions into a simple self-service solution. With a range of promotions and offers, the kiosk enables the customer to better manage their marketing efforts. A flexible interface and control panel functionality enable the kiosk to be responsive to customers’ changing business conditions or plans. With the drawings feature, multiple point to entry conversion ratios can be controlled by the hour, as well as scheduled prize earnings. Customized content is shared throughout the solution with property amenities that include menus, photos, and video content. With a graphic-rich, statistically-optimized, and exciting promotions catalog library of more than 300 games, critical assets for instant win, episodic board games, and earn and wins, customers’ patrons can easily access differentiated content.

Sales

As of December 31, 2022, the company served more than 3,100 casinos and other gaming properties primarily in the United States and Canada, with additional customers in Australia, the United Kingdom, Europe, the Caribbean, Central America, and Asia.

In its Games and FinTech businesses, the company sells and markets its products and services primarily through direct sales force, which targets regulated gaming operators in the United States, Canada, and in certain international markets. The company’s sales and marketing efforts are directed by a team of customer service executives, each of whom has business development responsibility for gaming operators in specified geographic regions. These customer service executives direct their efforts at various gaming operator personnel, including senior executives, finance professionals, marketing staff, slot directors, and cashiers, and seek to educate them on the benefits of the company’s products and services. In some cases, the company’s customer service executives are supported by field service and customer engagement teams, who provide on-site customer service. In other cases, its sales executives directly maintain the customer relationships.

Markets

Development Activities

The company conducts research and development activities for both its Gaming and FinTech lines of business.

The company’s Games research and development activities are primarily to develop gaming systems, game engines, casino data management systems, central determination and other electronic bingo-outcome determination systems, video lottery outcome determination systems, gaming platforms and gaming content, and to enhance its existing product lines.

The company’s FinTech research and development activities are primarily to develop payments products, systems, and related capabilities including security, encryption, and business rule engines that deliver differentiated patron experiences and integrate with its other products; compliance products that increase efficiencies, profitability, enhance employee/patron relationships, and meet regulatory reporting requirements; and loyalty products, systems, and features that attract, engage, and retain patrons in more intuitive and contextual ways.

Research and Development

The company’s research and development costs were $60.5 million for the years ended December 31, 2022.

Seasonality

Historically, the company has generally experienced higher operating income during the first half of a year (year ended December 31, 2022) and lower operating results during the second half of a year; however, such fluctuations do not have a material impact on its revenues and cash flow.

Government Regulation

The company’s Native American customers are regulated by the National Indian Gaming Commission (NIGC), which was established by the Indian Gaming Regulatory Act of 1988 (IGRA). The NIGC has regulatory authority over certain aspects of Native American gaming and defines the boundaries of the company’s dealings with the Native American marketplace and the level of regulatory authority to which these games are subject. IGRA establishes three classes of gaming, each with a different regulatory framework:

In addition, the financial access services the company provides are subject to record keeping and reporting obligations under the Bank Secrecy Act. The company’s gaming operator customers are required to file a Suspicious Activity Report (SAR) with the U.S. Treasury Department’s Financial Crimes Enforcement Network to report any suspicious transactions relevant to a possible violation of law or regulation. The company is also required to file a SAR in certain circumstances where it provides its financial access services directly to patrons. The company’s gaming operator customers, in situations where its financial access services are provided through gaming operator cashier personnel, and it, in situations where it provides its financial access services, are required to file a Currency Transaction Report (CTR) of each deposit, withdrawal, exchange of currency, or other payment or transfer by, through, or to it which involves a transaction in currency of more than $10,000 in a single day. The company’s CashClub product can assist in identifying transactions that give rise to reporting obligations. The Johnson Act, as amended by the federal Gambling Devices Act of 1962 (the Johnson Act), requires that the company registers annually with the Criminal Division of the United States Department of Justice, and requires a wide variety of record keeping and equipment identification efforts on its part.

The company also has a program designed to comply with applicable economic and trade sanctions programs, including those administered and enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). These sanctions are usually targeted against foreign countries, terrorists, international narcotics traffickers, and those believed to be involved in the proliferation of weapons of mass destruction.

The company’s POS debit card financial access transactions, credit card financial access transactions, and funds dispensing services are subject to the Electronic Fund Transfer Act, which provides cardholders with rights with respect to electronic fund transfers, including the right to dispute unauthorized charges, charges that list the wrong date or amount, charges for goods and services that are not accepted or delivered as agreed, math errors, and charges for which a cardholder asks for an explanation or written proof of transaction along with a claimed error or request for clarification.

The company’s Central Credit gaming patron credit bureau services and check verification and warranty services are subject to the Fair Credit Reporting Act (the FCRA) and the Fair and Accurate Credit Transactions Act of 2003 (the FACTA) and their implementing rules, which require consumer credit bureaus, such as Central Credit, to provide credit report information to businesses only for certain purposes and to otherwise safeguard credit report information, to disclose to consumers their credit report on request, and to permit consumers to dispute and correct inaccurate or incomplete information in their credit report. In addition to federal regulations, the company’s Central Credit gaming patron credit bureau services are subject to the state credit reporting regulations that impose similar requirements to the FCRA and the FACTA.

The company’s collection of information from patrons who use its financial products and services, such as its financial access services, are subject to the financial information privacy protection provisions of the Gramm-Leach-Bliley Act of 1999 (the GLBA) and its implementing federal regulations. The GLBA requires the company to safeguard and protect the privacy of such non-public personal information and requires it to make disclosures to patrons regarding its privacy and information sharing policies and give patrons the opportunity to direct it not to disclose information about them to unaffiliated third parties in certain situations. The company is also subject to state privacy regulations which, in some cases, may be even stricter than federal law, including without limitation, the California Consumer Privacy Act which became effective as of January 1, 2020. The company is subject to foreign data protection and privacy laws, including but not limited to, the European Union General Data Protection Regulation, which became effective in May 2018 and requires companies to meet certain requirements regarding data privacy and security.

The Electronic Fund Transfer Act requires the company to disclose certain notices regarding the fees that it charge for performing a funds dispensed transaction, as well as to incorporate such notices on the ATM screens to notify patrons of such fees prior to completing a funds dispensed transaction. The company’s funds dispensed services are also subject to applicable state banking regulations in each jurisdiction in which it operates ATMs, which require, among other things that it registers with the state banking regulators as an operator of ATMs that it provides gaming patrons with notices of the transaction fees assessed upon use of its ATMs that its transaction fees do not exceed designated maximums that it offers gaming patrons a means of resolving disputes with it, and that it complies with prescribed safety and security requirements. In addition, the ATMs the company is operate are subject to requirements of the Americans with Disabilities Act, which in general require that ATMs be accessible to individuals with disabilities, such as visually-impaired persons.

As a merchant of financial access transactions processed through MasterCard, Visa, Discover, and American Express, all who have adopted the EMV standard, and as an operator of ATMs, the company’s POS, fully-integrated kiosk, and ATM devices are subject to the EMV standard. This requires the company to maintain its fleet of U.S.-based POS, fully-integrated kiosk, and ATM devices to support the EMV standard. The company is also subject to a variety of gaming and financial services regulations and other laws, including the Foreign Corrupt Practices Act, in the international markets in which it operates.

History

The company was founded in 1998. The company was incorporated in 2004. It was formerly known as Global Cash Access Holdings, Inc. and changed its name to Everi Holdings Inc. in 2015.