April 22 (Reuters) - A digital payments company has sued

casino operations giant Everi ( EVRI ) for allegedly blocking

platforms that give customers alternative, non-cash ways to fund

gaming activities.

Plaintiff Koin Mobile said in its Nevada federal court

lawsuit on Friday that Everi ( EVRI ) unlawfully forces casinos to use

only its own digital payments product in a bid to dominate the

nascent market for virtual wallets for gaming.

The lawsuit said Everi ( EVRI ) violates U.S. antitrust law by

"tying" the use of its digital wallet to other company services

involving cash-access, and through "onerous" long-term exclusive

agreements that bar casinos from working with other non-Everi ( EVRI )

digital wallet providers.

Nevada-based Everi ( EVRI ), which reported $808 million in revenue

last year, long has been a provider of gaming equipment and

payments, including cash-access systems for casinos.

Everi ( EVRI ) and Koin did not immediately respond to requests for

comment.

Nevada's state gaming regulator in 2020 approved rules that

allow digital payments for gaming, Koin's lawsuit said.

Koin, founded in 2021, offers a product called Koin Wallet

that competes with Everi's ( EVRI ) CashClub Wallet. Koin has billed its

wallet as distinctively general-purpose, supporting

gaming-related financial transactions and other activity.

Koin said its digital wallet "threatened [Everi's ( EVRI )] dominance

of in-casino financial access" and that the larger rival has

taken steps to stymie competition, including interfering with

Koin's casino business relationships.

"More casinos and patrons using digital wallets means fewer

casinos and patrons using Everi's ( EVRI ) cash-access systems," Koin's

lawsuit said. Digital wallets, the lawsuit said, "threaten to

relegate cash-access kiosks to history's trash heap of payphones

and typewriters."

Everi ( EVRI ) sought early on to collaborate with Koin to develop a

digital wallet but subsequently abandoned that effort, according

to the lawsuit.

Koin alleged that "Everi ( EVRI ) can and does charge higher prices

than its competitors" because casinos are locked into using its

services.

Everi ( EVRI ) in February said it was merging with International

Game Technology ( IGT ), which provides casino-management

systems. Koin's lawsuit said the deal to form a $6.2 billion

company will give Everi ( EVRI ) "far-reaching control over the

digital-wallet markets."

A representative for International Game Technology ( IGT ) did not

immediately respond to a request for comment on Monday. The

company is not a defendant in Koin's lawsuit.

Koin said it was seeking "tens of millions of dollars" in

damages for lost profits and lost business opportunities.

The case is Koin Mobile LLC v. Everi Holdings Inc ( EVRI ) and Everi

Payments Inc, U.S. District Court, District of Nevada, No.

3:24-cv-00178.

For plaintiff: Robert Ryan and Paul Swanson of Holland &

Hart

For defendant: No appearance yet

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